Qantas fined millions for mass redundancies during pandemic

The airline has to pay a fine of 90 million Australian dollars (equivalent to around 50 million euros) for the dismissal of around 1,800 employees whose jobs were outsourced to external service providers. Experts spoke of a record fine.

More than half of this will go to the Transport Workers Union (TWU), as the responsible federal court ruled on Monday. The use of the remaining 40 million will be decided at a later date. "To deprive someone of their work illegally is to deprive them of part of their human dignity, and this loss cannot be alleviated by mere verbal regret," the ruling stated.

The union had demanded the maximum fine of 121 million Australian dollars, while Qantas argued for a "medium" fine of 40 to 80 million.

The affected employees had already been awarded 120 million dollars in compensation. The airline had agreed on this sum with the union in December.

Lack of remorse

Judge Michael Lee criticized the airline for its lack of remorse. Qantas had been more concerned about the damage to the company's image than the consequences for the dismissed employees. "The company fought back until it could no longer fight back," said the judge.

Legal experts spoke of the highest penalty ever imposed in Australia for violations of labor law. "The judgment shows that courts will not tolerate attacks on workers' rights," the ABC broadcaster quoted employment lawyer Josh Bornstein as saying. It was a case of "enormous misconduct" on the part of Qantas. The company had used the coronavirus pandemic to achieve its long-held goal of forcing the TWU and its members, who worked as baggage handlers and ground staff, out of the company.