While ending a five-year legal battle over the workers’ rights, for illegally laying off 1,800 ground staff during the Covid-19 pandemic, the flag carrier of Australia, Qantas Airways Limited was fined by an Australian court on Monday.
How Did This Happen?
Talking about the outcome, the Federal Court Justice Michael Lee said he wanted the penalty to be a “real deterrence” to firms that might be tempted by the financial rewards of breaching employment law.
The story started when the Australian company, Qantas decided to sack the workers and outsource their jobs in August 2020 during the period of lockdowns and border closures when no Covid-19 vaccine existed.
In their research, Australia’s Federal Court found that Qantas had acted illegally despite its stated “commercial imperatives” and later dismissed an appeal by the airline.
Further adding that the carrier had prevented staff from accessing their rights to collectively bargain or take industrial action.
In the case of Qantas, the company long-dubbed the “Spirit of Australia”, 104-year-old Qantas has been on a mission to repair its reputation.
It was hit in recent years by the illegal sackings, soaring ticket prices, claims of sloppy service, and the selling of seats on already-cancelled flights.
Promising to improve customer satisfaction, Qantas chief executive Vanessa Hudson took over in 2023.
Despite delivering bumper profits for shareholders, the earlier chief executive, Alan Joyce was replaced by Vanessa Hudson;he had to step down earlier than planned as Qantas endured heavy criticism over its treatment of workers and passengers.
Finally A Win For Qantas Workers
Coming to the latest penalties, it needs to be paid in two parts, with Aus$50 million going to the Transport Workers Union and Aus$40 million being held for future payments to the former workers according to the court.
Please note here that this penalty is in addition to a compensation payment of Aus$120 million for affected former employees that Qantas agreed to last year.
On this occasion, Anne Guirguis, who worked at Qantas for 27 years cleaning aircraft before being laid off, expressed, “It has been five long years. Today is a victory, not just for our colleagues but for all Australian workers.”
Further adding, “We can close this chapter and move on now.”
Similarly, the Transport Workers’ Union National Secretary, Michael Kaine described Monday’s decision as a “final win” for the Qantas workers.
Adding, “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.”
But this is changing as “Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history.”
