Qantas has been slammed with another $90 million penalty over its unlawful pandemic sackings – a scandal that has now cost the airline $210 million in payouts.
In 2020, at the height of the pandemic, Qantas axed more than 1,800 baggage handlers, cleaners and ground staff, replacing them with contractors – a move the Federal Court ruled was a deliberate bid to cripple union bargaining power in wage negotiations.
The embattled airline took its fight all the way to the High Court and lost – clearing the way for Monday’s multi-million dollar punishment.
The Transport Workers Union had pushed for the maximum $121 million fine, while Qantas pleaded for leniency, urging Justice Michael Lee to keep the punishment in the ‘mid-range’ of $40 to $80 million.
But the court came down heavily on the airline, with Justice Lee ordering $50million be handed directly to the union, with a further $40 million penalty still to be decided at a later hearing.
The judge said the ‘sheer scale of the contraventions, being the largest of their type’ as a reason to impose a penalty that would deter other businesses from similar conduct.
‘It will send a message to Qantas and other well resourced employers that not only that, will they face potentially significant penalties for the breach of the act, but those but those penalties will be provided to trade unions to resource those unions in their role as enforcers of the act.’
He also criticised the airline’s expressions of regret as ‘the wrong kind of sorry’ – motivated more by reputational damage than genuine remorse.
Former Qantas CEO Alan Joyce says the airline demonstrated ‘resilience’ during the pandemic
Justice Lee blasted new Qantas boss Vanessa Hudson for refusing to face the witness stand – despite being paraded as the airline’s symbol of change
‘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, rather than remorse for the damage done to the affected workers or any concern it engaged in contravening conduct.’
Justice Lee singled out new CEO Vanessa Hudson, accusing her of avoiding accountability by refusing to take the witness stand, despite being held up by Qantas as the face of cultural change following the resignation of Alan Joyce.
‘Whatever this new leadership and accountability means in conquering terms, it did not extend to Ms Hudson taking the step of entering the witness box and explaining on oath what she’s learned from being involved as part of the senior management of Qantas.’
That meant the court never heard Hudson’s account of who made the outsourcing decision, whether she regretted it, or what she might have done differently.
Chief People Officer Catherine Walsh was accused of hypocrisy for expressing sorrow while the airline simultaneously resisted compensating workers.
Justice Lee said her apology didn’t match Qantas’ actions, because the company was still refusing to pay compensation.
‘To deprive someone of work illegally is to deprive someone of an aspect of their human dignity, and this is not assuaged simply by expressions of regret,’ Justice Lee said.
Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing.
Chief People Officer Catherine Walsh was accused of hypocrisy for expressing sorrow while the airline simultaneously resisted compensating workers
However, Justice Lee said he didn’t have enough evidence to be convinced those payments would be made.
The court was told the scandal-plagued airline began to finally accept responsibility for its actions in 2023, Justice Lee noted, which coincided with the departure of Joyce.
The courtroom was packed with union members and representatives, who hugged and exchanged smiles after Justice Lee handed down his decision.
Transport Workers Union national secretary Michael Kaine praised Justice Lee for seeing through ‘slippery and deceptive evidence’ from the airline.
‘Alan Joyce’s Qantas decided that it would take his own workforce to the High Court of Australia,’ Mr Kaine said.
‘Well, of course, these workers prevailed in the High Court of Australia as well.
‘And what this result shows the community is that under Alan Joyce, Qantas was a brutal corporate dictatorship, and we know what happened.
‘Alan Joyce was effectively marched out of the door, as this result confirms.’
Just days before the court’s ruling, Mr Joyce was still celebrating his legacy as the man who kept Qantas alive through ‘unprecedented times’.
‘Here’s the real insight: resilience isn’t a reaction … it’s a decision made years in advance, often when it’s uncomfortable, even unpopular,’ he said.
‘Qantas was the only major Australian airline not to go bankrupt during or after the pandemic … that wasn’t luck, that was resilience.’
In reality, the flagship carrier was propped up with almost $2.7billion in taxpayer support during Covid-19, and none of it was paid back.
Meanwhile, Mr Joyce walked away with a $24 million golden handshake – a payout Labor Senator Tony Sheldon labelled the ‘swindle of the century’.
‘If the board allows Mr Joyce to walk away with $24million after illegally sacking 1,700 people, gouging customers and while subject to an ACCC prosecution, it will be the swindle of the century,’ Senator Sheldon said in 2023.
‘Qantas’ illegally outsourced baggage handlers earning $65,000 per year. If Mr Joyce walks away with his $24 million, he will make their annual salary in less than 6 hours.’
According to Senator Sheldon Mr Joyce’s legacy was making Qantas ‘synonymous with low pay, insecure work, illegal sackings and consumer rip-offs’.
Today’s decision comes after Qantas also sold tickets to cancelled flights for several years, triggering more legal turmoil and a $100million fine after it was sued by the Australian Competition and Consumer Commission.
