Qantas Airways fined $59mn for illegal pandemic layoffs, ordered to pay additional $78mn in compensation.

Qantas Airways has been fined $59 million for illegally laying off 1,800 ground staff at the start of the COVID-19 pandemic. The airline had already agreed to pay $78 million in compensation to former employees. The penalty is in addition to the $59 million fine.

Qantas Airways, Australia’s largest airline, has been fined A$90 million ($59 million) for illegally sacking over 1,800 ground staff and replacing them with contractors during the COVID-19 pandemic. The ruling by the Federal Court of Australia Judge Michael Lee on Monday (August 18) underscores the severity of the airline's actions and the consequences of violating workplace laws [1].

The penalty is in addition to the AU$120 million ($78 million) in compensation that Qantas had already agreed to pay its former employees. The airline faced criticism for outsourcing 1,820 baggage handler and cleaner jobs at Australian airports in late 2020, which was deemed the "largest and most significant contravention" of relevant Australian labor laws in their 120-year history [2].

Judge Lee ruled that the minimum fine of AU$90 million ($59 million) was necessary to create a deterrence, noting that Qantas executives had expected to save AU$125 million ($81 million) a year through outsourcing the jobs. The Transport Workers Union, which took the airline to court, had argued for the largest fine available, AU$121,212,000 ($78,969,735), but Lee found that the minimum fine was sufficient to hold Qantas accountable [2].

Qantas has admitted to illegal conduct not only with employees but also with passengers. Last year, the airline agreed to pay AU$120 million ($78 million) in compensation and a fine for selling tickets on thousands of canceled flights. The Australian Competition and Consumer Commission (ACCC) sued Qantas for false, misleading, or deceptive conduct by advertising tickets for over 8,000 canceled flights [3].

The penalty underscores the importance of adhering to labor laws and the consequences of non-compliance. Qantas has expressed regret for its actions and stated that it has been working to rebuild trust with its employees and customers. The remaining AU$40 million ($26 million) of the fine will be decided at a later hearing [2].

References:
[1] https://economictimes.indiatimes.com/news/international/world-news/qantas-airways-fined-58-million-over-illegally-sacking-over-1800-workers-during-pandemic/videoshow/123357292.cms
[2] https://apnews.com/article/australia-qantas-fined-court-illegal-firing-staff-965b80da6e9b14dbf7a4809a85f803ac
[3] https://abcnews.go.com/Business/wireStory/qantas-fined-59m-illegal-pandemic-layoffs-124734198