As a result, Qantas Airways will have to pay the mind-blowing $90 million penalty. In 2006, a Federal Court found the airline in contempt for violating pay and other industrial relations laws. This announcement follows weeks of similar allegations. These violations are piling on misleading customers by continuing to sell tickets for flights the airline canceled as far out as May 2024 and improperly outsourcing ground handling jobs in 2020. Yet the airline’s actions have resulted in grave concerns about the company’s handling of employees and upholding workplace laws.
As part of the penalty, the airline will make a $50 million payment to the Transport Workers Union (TWU). We’ll decide the rest of that $40 million at a future hearing. This unprecedented ruling is now the largest penalty ever imposed by an Australian court for contraventions of industrial relations laws. It underscores the seriousness of Qantas’s wrongdoing and suggests significant ramifications for the airline industry writ large.
Today, the Federal Court announced its final ruling on Qantas’s highly publicized decision to outsource its ground handling services. This decision led to the illegal firing of over 1,820 employees, including worker organizer Theo Seremetidis, in November 2023. The airline’s leadership endured withering criticism after the decision was announced. In response, Qantas CEO Vanessa Hudson apologized, saying she was truly sorry for the effect on the former staff and their families.
The Court’s Findings
A court ruling highlighted that Qantas engaged in a “carefully planned and executed union-busting operation.” Justice Lee observed that the airline’s strategy indicated an entrenched industrial relations culture that was remarkably averse to change.
“They [Qantas workers] weren’t just sacked, they were told by Qantas that they were delusional for questioning it. This ruthless, self-interested and illegal calculation to kick them to the curb has rightfully merited the largest ever penalty of its kind.” – Justice Lee
The court’s decision underscores how Qantas attempted to conceal the involvement of former CEO Alan Joyce in the outsourcing plan. Despite arguably winning at trial, the effort fizzled during the legal process. The unsealing of these documents led to widespread criticism of the airline’s motivations and behavior.
Leadership Accountability and Apologies
In a statement issued after the ruling, Vanessa Hudson, CEO of Qantas, recognized the hurt inflicted on ex-employees. She stated, “We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.” Hudson underscored how the privatization of ground handling services over recent times resulted in immense pain and suffering for millions. He noted that this decision resulted in “real suffering.”
Catherine Walsh, Qantas’ chief people officer, offered apologies during hearings regarding the company’s actions. Though both leaders said they were truly sorry, their responses were viewed with apprehension by some watchers.
“Time will only tell whether the undoubted good intentions of Miss Walsh will prevail. The scope of the task… not to be underestimated.” – No specific source
For that, critics say Qantas is definitely more “the wrong kind of sorry.” They feel that the airline is more concerned about false appearances than in producing real changes that would make amends with its employees.
Implications for Future Governance
The decision has wider-reaching implications for workplace legislation, and corporate culture and governance in Australia generally. Legal experts opine that the massive penalty is meant to send a signal to other companies about the importance of complying with labor law.
“Record-breaking penalty reflects the monumental scale of Qantas’s wrongdoing and the court’s concern that Qantas and the business community need to understand that calculated, mass violations of workplace laws may result in severe financial punishment.” – Josh Bornstein
The TWU celebrated the ruling as a landmark victory for its members and for labor. Michael Kaine, a representative from TWU, stated, “Today’s decision is a final win for both those workers and the tens of thousands of other TWU members who backed them every step of the way.”
Qantas’ new leadership have pledged to right many of these wrongs in the future. Hudson understood that the choices they made had a profound impact beyond the people who lost their careers. The downstream effects hit the entire workforce hard, too.
“The impact was felt not only by those who lost their jobs, but by our entire workforce.” – Vanessa Hudson
