Melbourne, Aug 18 (AP) - A judge fined Qantas Airways 90 million Australian dollars (USD 59 million) on Monday for unlawfully terminating the jobs of over 1,800 ground staff at the beginning of the Covid-19 pandemic.
This penalty is in addition to the AUD 120 million (USD 78 million) in compensation Australia's largest airline had agreed to pay its former employees.
Australian Federal Court Justice Michael Lee described the outsourcing of 1,820 baggage handler and cleaner jobs at Australian airports in late 2020 as the “largest and most significant contravention” of relevant Australian labor laws in the airline's 120-year history.
Last December, Qantas agreed to pay AUD 120 million (USD 78 million) in compensation to former staff, following the rejection of its appeal by seven High Court judges against the judgment that outsourcing their jobs was illegal.
The Transport Workers Union, which took the airline to court, advocated for the maximum possible fine of AUD 121,212,000 (USD 78,969,735).
Justice Lee ruled that a minimum fine of AUD 90 million (USD 59 million) was necessary as a deterrent, as Qantas executives had anticipated saving AUD 125 million (USD 81 million) annually through the job outsourcing.
Lee questioned Qantas's genuine remorse for its illegal actions, noting that the airline had unsuccessfully argued against compensating its former staff.
“If any further evidence was needed of the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune,” Lee remarked.
He added, "I do think that the people in charge of Qantas now have some genuine regret, but this more likely reflects the damage that this case has done to the company rather than remorse for the damage done to the affected workers.”
Following Monday's ruling, Qantas chief executive Vanessa Hudson, previously the airline's chief financial officer during the layoffs, issued a statement: “We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.”
She continued, “The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families. Over the past 18 months, we've worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost.”
Justice Lee directed that AUD 50 million (USD 33 million) of the fine be allocated to the union, due to the lack of interest shown by any Australian government agency in investigating or prosecuting Qantas.
“But for the union … , Qantas' contravening conduct would never have been exposed and it would never have been held to account for its unlawful conduct,” Lee stated. “Hence the union has brought to the attention of the court a substantial and significant transgression of a public obligation by a powerful and substantial employer.”
A subsequent hearing will determine the allocation of the remaining AUD 40 million (USD 26 million) of the fine.
Michael Kaine, national secretary of the union, representing 60,000 members, expressed a sense of vindication following Monday's ruling, which concludes a five-year legal battle that Qantas was expected to win.
“It is a significant — the most significant — industrial outcome in Australia's history and it sends a really clear message to Qantas and to every employer in Australia: Treat your workforce illegally and you will be held accountable,” Kaine told reporters.
“Against all the odds, we took on a behemoth that had shown itself to be ruthless and we won,” Kaine added.
Qantas has admitted to unlawful dealings involving both passengers and employees in its responses to the pandemic’s economic challenges.
Last year, Qantas agreed to pay AUD 120 million (USD 78 million) in compensation and fines for selling tickets on thousands of flights that had been canceled.
The Australian Competition and Consumer Commission, a consumer watchdog, sued the airline in the Federal Court, alleging that Qantas engaged in false, misleading, or deceptive conduct by advertising tickets for over 8,000 canceled flights from May 2021 through July 2022. (AP)
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