Qantas fined $59M for illegally sacking 1,800 workers during COVID
What's the story
Australian airline giant Qantas has been slapped with a massive A$90 million (approximately $59 million) fine by the Federal Court of Australia. The penalty comes after the airline illegally sacked around 1,820 ground workers during the COVID-19 pandemic. The court's decision was welcomed by Australia's Transport Workers's Union, which described it as the largest employer penalty in Australian history.
Controversial move
Airline defended its decision as necessary financial measure
The penalty comes after a long-standing legal battle over Qantas's decision to outsource its ground operations staff in 2020. The airline had defended this move as a necessary financial measure amid the aviation industry's downturn during the pandemic. However, Justice Michael Lee of the Federal Court said he wanted the fine to serve as a "real deterrence" for other employers.
Union compensation
Court orders Qantas to pay A$50 million to TWU
The court has ordered Qantas to pay A$50 million of the penalty directly to the Transport Workers's Union (TWU), which had sued the airline over the layoffs. The decision marks the "end of a David and Goliath five-year battle" and is a "moment of justice for loyal workers who'd loved their jobs at the airline," said TWU in a statement.
Financial impact
Total cost of outsourcing decision exceeds $200 million
The penalty comes nine months after Qantas and TWU agreed on a A$120 million payout for the sacked workers. Justice Lee noted that the A$90 million penalty was "slightly less than 75% off the maximum penalty," with A$50 million going to TWU. He withheld his decision on who should receive the remaining A$40 million. The total cost of Qantas's controversial outsourcing decision now exceeds over A$200 million (approximately $130 million).