An Australian court fined Qantas AUD 90 million ($59 million) on Monday for unlawfully laying off 1,800 ground staff during the Covid-19 pandemic, bringing a five-year legal battle over workers' rights to a close, reports AFP.
Federal Court Justice Michael Lee observed that the penalty should serve as a "strong deterrent" to companies considering the financial benefits of violating employment laws.
In August 2020 amid strict lockdowns, closed borders, and no widely available Covid-19 vaccine, Qantas, the Australia flag carrier, decided to sack the workers and outsource their jobs.
Despite citing "commercial imperatives", the federal court later ruled that the airline acted unlawfully, because it prevented staff from accessing their rights to collectively bargain or take industrial action.
The court later dismissed an appeal by the airline.
Once proudly known as the "Spirit of Australia," the 104-year-old Qantas has been working to rebuild its tarnished image following a series of controversies, including illegal sackings, soaring ticket prices, allegations of sloppy service, and the selling of seats on already-cancelled flights.
In 2023, Vanessa Hudson took over as CEO of Qantas, pledging to improve customer satisfaction.
She succeeded Alan Joyce, who resigned earlier than planned amid growing backlash over the airline's treatment of both workers and passengers, despite delivering bumper profits for shareholders.
"We sincerely apologise"
Qantas has accepted the court's ruling.
CEO Vanessa Hudson said, "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.
"We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result," she said in a statement.
The Federal Court ordered Qantas to pay the AUD 90 million fine in two parts, AUD 50 million will go to the Transport Workers Union, and the rest will be set aside for future payments to affected former employees.
The penalty is in addition to a compensation payment of AUD 120 million for affected former employees that Qantas agreed to last year.
"It has been five long years. Today is a victory, not just for our colleagues but for all Australian workers," said Anne Guirguis, a former Qantas employee of 27 years who was laid off from her role cleaning aircraft.
"We can close this chapter and move on now," she told reporters outside court.
Transport Workers' Union National Secretary Michael Kaine described the court's decision as a "final win" for the Qantas workers.
"Qantas was not sorry to workers when it illegally outsourced these workers, many finding out they'd lost their jobs over a loudspeaker in the lunch room," Kaine said.
"Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history."
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