Qantas Fined Record Amount for Illegal Layoffs
An Australian court has fined Qantas A$90 million (approximately U.S. $59 million) for illegally laying off 1,800 ground staff during the COVID-19 pandemic. This ruling concludes a five-year legal battle led by the Transport Workers' Union (TWU).
The Federal Court found that the airline's decision to outsource the jobs of baggage handlers and cleaners in August 2020 was a violation of Australian labor laws. The court determined that a key reason for the outsourcing was to prevent the workers, many of whom were union members, from exercising their right to take industrial action. The fine, which is being called the largest employer penalty in Australian corporate history, is intended to be a strong deterrent against similar actions by other companies.
The court has ordered that the A90 million fine be distributed in two parts: A50 million will go directly to the Transport Workers' Union, and the remaining A40 million will be held for future payments to the former employees. This penalty is in addition to the A120 million in compensation that Qantas had already agreed to pay the affected workers last year after losing its appeals in court.
