Qantas has been fined a record $90m for illegally sacking 1,820 baggage handlers and other ground staff during the pandemic in 2020. The penalty, handed down by Justice Michael Lee in the Federal Court in Sydney, brings the total cost of the airline's controversial outsourcing decision to more than $200m, including $120m already paid in compensation.
Justice Lee described the airline as 'the wrong kind of sorry', expressing doubt about the sincerity of its remorse. He criticised Qantas for attempting to obscure the decision-making process, for its public relations team spinning court decisions, and for failing to have CEO Vanessa Hudson testify. He noted that any regret seemed more about damage to the company than to the affected workers.
Of the $90m penalty, $50m will go to the Transport Workers' Union (TWU). Lee said allocating a significant portion to the union would incentivise enforcement of the Fair Work Act when the federal ombudsman fails to act. The remaining $40m is yet to be allocated, with the TWU proposing it go to additional support for the workers.
After the decision, Vanessa Hudson apologised to the 1,820 former employees and their families, acknowledging the 'genuine hardship' caused. Former workers expressed relief but also frustration, with many over 50 unable to find new jobs. TWU national secretary Michael Kaine called it a 'David and Goliath' battle and the 'most significant industrial outcome in Australia's history'.
