Qantas fined $59m for illegal firings

Federal Court slams airlines' culture

- ANGUS WHITLEY

Qantas Airways Ltd was ordered to pay A$90 million ($59 million) for illegally sacking almost 2,000 ground workers during the pandemic, in a court judgment that included sharp criticism of the airline's culture and raised questions about how much the company has changed.

In a ruling yesterday, the Federal Court of Australia told Qantas to pay A$50 million of the penalty directly to the Transport Workers' Union, which had sued the airline over the firings. A portion of the remainder, to be determined at a later hearing, might go to some of the 1,820 sacked workers. The fine comes on top of last year's A$120 million compensation deal for the impacted former employees.

Qantas outsourced ground-handling operations at 10 Australian airports in late 2020, under then-Chief Executive Officer Alan Joyce, as the pandemic brought aviation to a standstill. The Transport Workers' Union argued staff were axed to avoid looming negotiations over pay and conditions and potential strikes.

Reading his hour-long judgment, Justice Michael Lee criticised the culture that allowed the firings to proceed. He also questioned the airline's degree of contrition and its commitment to change, noting Qantas's "unrelenting and aggressive litigation strategy" as it pursued the case through the courts.