Qantas hit with $90 million penalty for illegal sacking of 1800 workers

Sydney Morning Herald

9 hours ago

The case marks a significant win for the TWU at a time when the conditions of wages and work are being debated in the post-COVID economy.
The penalty is in addition to the $120 million Qantas has already agreed to pay in compensation to the illegally fired workers.
Monday's penalty hearing concludes a saga that began in 2020 when, facing the onset of the pandemic lockdown, Qantas announced it had decided to outsource ground handling operations at 10 Australian airports, culling more than 1800 employees.
The TWU immediately challenged the decision in court, and it was found the following year that Qantas had acted illegally 'in part motivated by a desire to prevent the employees taking protected industrial action in the future'.
Qantas appealed the case to the Supreme Court, which unanimously dismissed it, in a win for the TWU.
In May, the court heard that Qantas, before it began outsourcing the workers in 2020, had sought to devise a plan for who should be named as the sole decision maker, essentially shielding the other executives from responsibility.
Justice Michael Lee said at the time: 'The message must be sent to the broader corporate community that you can't play the court for a fool and try to fashion your evidence in a careful way in order to try to dissemble what went on.'
In December 2024, Qantas agreed with the TWU to pay $120 million in compensation to the 1820 ground staff whose contracts were terminated, including 1700 workers who lost their jobs outright, as well as 120 who were redeployed within Qantas but suffered non-economic losses.
At the time, Qantas chief executive Vanessa Hudson, said: 'This is an important step in bringing closure to these individuals and I want to reiterate our sincere apologies to those impacted and their families.'
Hudson served as chief financial officer during the time the illegal sackings took place, before replacing Alan Joyce, who stepped down in 2023.
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Since Joyce's exit, Hudson has laboured to rehabilitate the airline's reputation, seeking to restore consumer trust, improve on-time performance, and promote a general calm throughout the company.
On Thursday, Joyce appeared to break his silence on his handling of Qantas' staffing. In a speech at the Australian Aviation Summit in Sydney, he said: 'It's well known that, during COVID, Qantas, like many airlines, also faced very challenging decisions about its workforce. I acknowledge that.'
While it's a far cry from an apology, it marks his first public reckoning with his legacy at the iconic airline.
Joyce's pay for his last year at the helm of Qantas could have been as high as $23.6 million, taking in a base salary of $2.2 million plus short-term and long-term incentive plans.
After his exit prompted a board-commissioned review of the airline's leadership, the board voted to cut Joyce's pay by $9 million.
Joyce is still eligible for $4 million more through a long-term incentive plan, which depends on Qantas' performance and share price. During Joyce's 15-year tenure at Qantas, he earned about $125 million.