Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Qantas has been ordered to pay the largest industrial relations penalty in Australian corporate history over the illegal sacking of 1,820 workers during the coronavirus pandemic, after a judge criticised the airline’s lack of genuine contrition over the affair.
The Federal Court had ruled in 2021 that a move to contract out baggage handling and cleaning a year earlier was in breach of the country’s industrial laws. A chaotic period followed for the “flying kangaroo” as it struggled with severe service issues once travel recovered, leading to a wider overhaul of the airline’s culture and management.
Justice Michael Lee said on Monday he had applied a A$90mn (US$59mn) penalty — by far the largest levied against a company for breaching Australian workplace laws. He criticised the airline over its actions during the lengthy legal process and said that while the airline had apologised over its previous actions, it was the “wrong kind of sorry”.
He cited public statements made by the company in the light of his initial ruling, arguments the airline made against compensation for the sacked workers and the failure of chief executive Vanessa Hudson to appear in court as reasons for him to question how remorseful the company was over the issue.
“It goes too far to conclude that Qantas is simply like Tartuffe, pleading virtue only when cornered and feigning contrition while harbouring no genuine regret,” the judge said, referring to the 1664 French play by Molière.
“I do think persons of responsibility within Qantas do now have some genuine regrets, but this more likely reflects the damage this case has done to the company,” he added.
The original ruling was unsuccessfully challenged by Qantas, which also pleaded for a lower penalty. The airline has separately agreed a A$120mn compensation package for the fired employees.
Hudson said in a statement that the decision to unlawfully outsource ground crew had caused “real harm” to employees and that it would pay the fine.
“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. The impact was felt not only by those who lost their jobs, but by our entire workforce,” she said.
The court, which could have applied a maximum penalty of A$121mn, ordered A$50mn to be paid to the Transport Workers’ Union, which brought the case against the airline, with the recipients of the remaining A$40mn to be determined at a later hearing. The union said that those funds should be paid to the affected workers.
Michael Kaine, TWU national secretary, said the penalty sent a strong signal to all Australian companies on the handling of industrial relations. “What’s important is that this never happens to any Australian worker again,” he told a press conference.
Kaine added the penalty reflected victory for the workers after the “callous” decision by Qantas to outsource their roles.
“They weren’t just sacked, they were told by Qantas that they were delusional for questioning it,” he said. “This ruthless, self-interested and illegal calculation to kick them to the kerb has rightfully merited the largest ever penalty of its kind.”
