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Qantas fined record AU$90 million over illegal staff sackings

Qantas Fined Record AU$90 Million Over Illegal Staff Sackings
Qantas has been ordered to pay a record AU$90 million penalty for the unlawful dismissal of 1,820 baggage handlers and ground staff in 2020. The airline replaced these employees with contractors during the COVID-19 pandemic, a move that was subsequently ruled illegal by the federal court in Sydney. Justice Michael Lee delivered the ruling, which adds to the financial repercussions for Qantas, bringing the total cost of the controversial outsourcing decision to over AU$200 million. This figure includes a separate AU$120 million compensation agreement reached last year with the Transport Workers’ Union (TWU) on behalf of the affected employees.
Judicial Criticism and Penalty Allocation
Justice Lee characterized the case as “no ordinary” industrial dispute, emphasizing Qantas’s attempts to conceal its decision-making process and highlighting the involvement of former chief executive Alan Joyce. The judge sharply criticized the airline’s response, describing it as “performative remorse” rather than genuine accountability for the workers impacted by the sackings. He further noted that the AU$90 million penalty represented the minimum amount necessary to act as a deterrent, reflecting the harm caused to the company rather than any expression of regret for the affected staff.
Of the total fine, AU$50 million will be paid directly to the TWU, while the remaining AU$40 million has yet to be allocated. Justice Lee explained that directing a substantial portion of penalties to trade unions would empower them to pursue breaches of workplace law, particularly in instances where the Fair Work Ombudsman had not intervened. He stated that this approach would send a clear message to Qantas and other well-resourced employers that significant penalties for violations of workplace legislation would also provide unions with the resources needed to enforce compliance.
Broader Implications and Corporate Conduct
The ruling follows the High Court’s rejection of Qantas’s appeal against earlier findings that the mass sackings were unlawful. Throughout the protracted legal proceedings, Qantas faced widespread criticism for its conduct, including the use of its public relations team to issue statements that appeared to spin court outcomes in its favour rather than addressing legal accountability. Justice Lee’s remarks contributed to growing concerns about Qantas’s corporate culture and its treatment of employees.
This record fine represents a further damaging episode in Qantas’s recent history, which has also been marked by widespread passenger complaints, scrutiny over executive bonuses, and government pressure regarding service standards. For many observers, the penalty highlights the significant reputational and financial costs of Qantas’s outsourcing strategy and serves as a cautionary example to other large employers about the consequences of breaching workplace laws.

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