Qantas Fined $59 Million for Illegally Firing Ground Staff During COVID-19 Pandemic

Strategic Insights -

Qantas Airways, Australia's largest airline, has been fined $59 million for illegally firing over 1,800 ground staff at the start of the COVID-19 pandemic. In addition to the fine, Qantas had already agreed to pay $78 million in compensation to its former employees. This decision marks the largest and most significant contravention of Australian labor laws in the country's 120-year history. The airline had sought to outsource 1,820 baggage handler and cleaner jobs at Australian airports in late 2020, a move that was deemed illegal by the court.

Key Takeaways:

  • Qantas was fined $59 million for illegally firing over 1,800 ground staff at the start of the COVID-19 pandemic.
  • The airline had already agreed to pay $78 million in compensation to its former employees.
  • The outsourcing of 1,820 baggage handler and cleaner jobs at Australian airports in late 2020 was deemed the "largest and most significant contravention" of relevant Australian labor laws in their 120-year history.
  • Qantas executives had expected to save $81 million a year through outsourcing the jobs.
  • The chief executive of Qantas, Vanessa Hudson, apologized to the affected employees and their families, stating that the decision to outsource caused genuine hardship.
  • The Transport Workers Union, which took the airline to court, received $33 million of the fine, as no Australian government agency had shown interest in investigating or prosecuting Qantas.
  • The decision sends a "really clear message to Qantas and to every employer in Australia: Treat your workforce illegally and you will be held accountable."

Statistics:

  • 1,820: The number of baggage handler and cleaner jobs outsourced by Qantas at Australian airports in late 2020.
  • $59 million: The fine imposed on Qantas for its illegal conduct.
  • $78 million: The amount of compensation already agreed to be paid to former employees by Qantas.
  • $81 million: The expected annual savings by Qantas through outsourcing the jobs.
  • 120 years: The number of years since Australian labor laws were established.

Sources:

  • The Associated Press
  • Australian Federal Court
  • Transport Workers Union