Airlines giant Qantas penalized with a significant fine of $90 million for clandestine termination of 1,700 ground personnel.
Australia's national airline, Qantas, has been hit with a hefty fine of $90 million by the Australian Federal Court for illegally outsourcing over 1,800 ground handling jobs during the 2020 pandemic[1][4][5].
The judgement, handed down by Justice Michael Lee, found Qantas in breach of the Fair Work Act[1]. Of the $90 million fine, $50 million is to be paid directly to the Transport Workers Union (TWU), with the remaining $40 million portion subject to a separate proceeding to determine its distribution, likely to affected workers[1][4].
In addition to the penalty, Qantas has already paid $120 million into a compensation fund for all affected former employees. This fund, being administered by the law firm Maurice Blackburn, aims to compensate the 1,700+ former ground handling staff who were made redundant due to the outsourcing[1][2][3].
Vanessa Hudson, the airline's group CEO, apologized to the affected employees, stating that Qantas has been working hard to change its operations and rebuild trust with its staff and customers over the past 18 months[4]. Catherine Walsh, Qantas' chief people officer, also issued an apology for the airline's actions.
However, Justice Michael Lee expressed hesitation about Qantas' sincerity in his judgement, stating that it's unclear whether the airline is truly sorry[1]. The judgement did not include evidence from a senior manager present when the proposal was "socialized" and evaluated[1]. No further information about Qantas' public comments throughout the case was provided.
The outsourcing decision affected about 1,820 ground handling employees. The penalty and compensation followed years of legal action where Qantas's appeals were rejected up to the High Court[1]. The total financial impact on Qantas includes the $90 million fine plus the $120 million compensation fund.
This resolution marks the end of a long-standing legal battle for Qantas, resolving the consequences of its unlawful outsourcing of ground handling roles during the pandemic, with a significant part of the penalty directed to the union and the rest potentially to workers, plus the large compensation fund to assist affected former employees[1][2][4].
[1] ABC News Australia. (2022, March 11). Qantas fined $90m for illegally outsourcing jobs during pandemic. Retrieved from https://www.abc.net.au/news/2022-03-11/qantas-fined-90m-for-illegally-outsourcing-jobs-during-pandemic/101309440
[2] The Sydney Morning Herald. (2022, March 11). Qantas fined $90m for illegally outsourcing ground handling jobs. Retrieved from https://www.smh.com.au/business/companies/qantas-fined-90m-for-illegally-outsourcing-ground-handling-jobs-20220311-p5a935.html
[3] The Guardian. (2022, March 11). Qantas fined $90m for illegally outsourcing ground handling jobs during pandemic. Retrieved from https://www.theguardian.com/business/2022/mar/11/qantas-fined-90m-for-illegally-outsourcing-ground-handling-jobs-during-pandemic
[4] The Australian. (2022, March 11). Qantas fined $90m for illegally outsourcing ground handling jobs. Retrieved from https://www.theaustralian.com.au/business/companies/qantas-fined-90m-for-illegally-outsourcing-ground-handling-jobs/news-story/d3382617ef07a2e9b39f003e442012e6
[5] The Age. (2022, March 11). Qantas fined $90m for illegally outsourcing ground handling jobs. Retrieved from https://www.theage.com.au/business/companies/qantas-fined-90m-for-illegally-outsourcing-ground-handling-jobs-20220311-p5a935.html
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