The humiliation of Qantas is now complete
Justice Lee did acknowledge the airline had – to a limited extent – held senior management such as Joyce responsible for their actions.
But there was little solace for the airline in his reference to an obscure 17th century French play he referenced in the judgement: 'It goes too far to conclude Qantas is now simply like Tartuffe; pleading virtue only when cornered and feigning contrition while harbouring no genuine regret. I do think persons of responsibility within Qantas do now have some genuine regrets, but this more likely reflects the damage this case has done to the company.'
The latest damage is easily judged by the fact that the $90 million fine was much closer to the $121 million requested by the Transport Workers' Union (TWU) than the $40 million baseline set by Qantas. It represents a humiliating rebuff of the airline's argument it had expressed remorse and undertaken significant culture change as a prevention measure.
Justice Lee took issue with two particular points of the Qantas PR campaign when it came to determining the airline's contrition – and the size of the penalty.
One was the recurring theme that it had sound commercial reasons to outsource its 1820 employees.
It 'overlooks the obvious reality that since man first started to engage in commercial activity, the motivation to engage in unlawful conduct in carrying out such activity can be accurately characterised as being predominantly a commercial one,' Justice Lee said.
The judgement may bring the fallout to a close for Qantas, but it raises the stakes for the rest of corporate Australia.
The other was the airline's unwillingness to acknowledge that the conduct was unlawful and accept responsibility for it.
Another issue that seemed to rankle Justice Lee was Qantas declining to make Hudson available as the obvious person who could provide direct and compelling evidence of the corporate change and contrition the airline has undergone.
Loading
After all, she was one of the most senior executives under Joyce and leads the airline now.
Instead, Qantas offered their HR boss Catherine Walsh, who joined the airline last year from PwC.
Was it a pragmatic cost of doing business for Qantas?
As Justice Lee's judgement said, it may have been an 'informed and deliberate' decision by the Qantas legal team given it would have been reasonable for Hudson to be asked about the extent of her knowledge of, and involvement in, the outsourcing decision.
Qantas, which made a $1.39 billion in underlying profit before tax for the December half year, may have preferred to pay a $121 million penalty than risk Hudson appearing before the court.
The judgement may bring the fallout to a close for Qantas, but it raises the stakes for the rest of corporate Australia with the awarding of at least $50 million of the penalty to the TWU for bringing the illegal conduct to light when no government body showed interest.
Justice Lee noted the payment would 'strongly incentivise' unions to bring prosecutions under the Fair Work Act against corporates with deep pockets – which is exactly what the big end of town fears.
But he also proved sceptical when it comes to relying on the union's discretion to decide how much of the $90 million penalty would be handed to the sacked workers.
Loading
Justice Lee said he would hold further hearings on how the remaining $40 million will be shared between the union and affected workers.
If the judgement raises questions about Hudson's cultural revolution at the airline, investors can at least take heart that Qantas chairman John Mullen is less than a year into his role.
Mullen is finally making his presence felt, with marketing guru Todd Sampson being shown the boardroom door this month. His departure should not be the last.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
9 hours ago
- Sydney Morning Herald
Roundtable should consider new carbon pricing scheme
With the government's economic roundtable now under way (' Federal government's productivity summit begins', August 19), it will hopefully be looking at raising the revenue to fund the transition to net zero. We know that nine months after the introduction of the carbon tax in 2012 our carbon dioxide emissions from electricity generation fell to a 10-year low, while the ABS reported a 2.6 per cent growth in the economy over the two-year period. After the Abbott government replaced the tax with an Emissions Reduction Fund, emissions started growing again as before. Surely now is the time to reconsider the reintroduction of a carbon pricing scheme. We know it works. Peter Nash, Fairlight Tessa Forshaw, an Australian scientist from Harvard, hits the nail on the head with her dissection of what's missing from the productivity roundtable and what's holding Australia back. It's a risk-adverse mindset (' Australia can't fix productivity without confronting its innovation hesitation', August 19). Our scientists are first-class, but too often have to move to the US or the UK to capitalise on their ideas. And that mindset has a lot to do with politics. The Hawke/ Keating government was not afraid to take risks. Since then, the chaos in Canberra and the Coalition's lost decade have landed us where we are now. Our Labor government has a thumping majority but is afraid to do what obviously needs to be done – because of the way politics works in Canberra. Under these circumstances, how can the populace be anything other than risk-averse? If we can't fix our politics, how can anything else work properly? The ray of hope is that the vote for the major parties continues to fall. Gary Barnes, Mosman Another topic that deserves discussion at the productivity round table is the multi-billion dollar diesel fuel rebate. Our current system refunds mining companies $495 for every 1000 litres of diesel used off-road. The Safeguard Mechanism penalty, meant to encourage emissions reduction in heavy industries, then charges these industries $5 for the resulting pollution. This is clearly a ridiculous situation, subsiding both pollution and the lame status quo. The productivity roundtable should adopt the Grattan Institute's proposal to wind back this generous diesel rebate, apply an emissions charge instead, and begin the shift to road-user charging. Mark Wills, Northcote (Vic) Paul Keating once said Ross Gittins was the only economist worth listening to. Personally, I never miss his column. So where is his inclusion in this week's roundtable? Judy Nicholas, Kambah (ACT) Qantas pays the price It's encouraging that Justice Michael Lee has not only upheld workers' rights, but also chastised Qantas for its unconscionable behaviour in profiting from the misery of its workers (' Payday for union as Qantas fined $90 million ', August 19). Perhaps the tide has finally turned against the decade-long conservative free-for-all that elevated profit and unethical business practice above workers' rights and drove the imbalance between wage increases and soaring profits. I'd take issue, however, with the suggestion that unions mount 'frivolous' cases. Generally, when a case is brought, it is to pursue fair and proper treatment. Alison Stewart, Riverview Justice Lee's judgment against Qantas highlights the value of unions. With no government agencies prepared to take on the might of Qantas for its sacking of baggage handlers, the Transport Workers Union (TWU) stepped up all the way to the High Court and won. Former CEO Alan Joyce and his minions engaged in conduct that damaged, both personally and financially, thousands of employees who had given decades of honest and faithful service to Qantas. Who stepped in to seek compensation for these workers; the government? No, it was one of the much-maligned unions that conservatives and the Murdoch press demonise at every opportunity. As a long-term union member I always saw the value of fighting for the rights and entitlements of workers. I applaud the TWU and the entire union movement for their tireless (and undervalued) advocacy on behalf of all Australian workers. Stronger together forever. Tony Heathwood, Kiama Downs The Morrison government gave Qantas about $2.7 billion in assistance during COVID, for which the taxpayer received no equity and lost a mountain of luggage. Last October, the company was fined $100 million for selling tickets for flights it had already decided to cancel. Now they have been fined $90 million for illegally sacking workers. Furthermore, they have killed any aviation competition in the regions by destroying REX through cross-subsidising their routes. Put plainly, the Spirit of Australia has become the Spirit of Mistrust and Exploitation. Malcolm Freak, Armidale Justice Lee's findings against Qantas and its IR breaches should send a clear warning to the Coalition shadow bench should it seek to water down employees' rights and embolden big business to maximise profits at the expense of workers' hard-fought and won entitlements. Severino Milazzo, Maroubra Why is ex-Qantas chief executive Alan Joyce not asked to repay some of his massive golden handshake? It was surely his decision to sack staff. Richard Harman, Banora Point Taco Trump Peter Hartcher's reference to Donald Trump's 'snivelling display' at his meeting with Vladimir Putin has many echoes of then British PM Neville Chamberlain's grovelling 'pilgrimage' to meet Hitler in 1938 (' How Trump went from American eagle to cooing pigeon ', August 19). Not only did Chamberlain (and France) agree to hand over part of what was then Czechoslovakia to Germany without that country's knowledge or consent, but like Trump's spurious claims of a '10 out of 10' outcome for his Alaska meeting, Chamberlain returned to England waving a piece of paper which he claimed represented 'peace in our time'. It's truly depressing to see the leader of the country that played such an important role in saving the world from Nazi and Japanese domination behaving in such a craven and cowardly manner in the face of a tyrant like Putin. Martyn Yeomans, Sapphire Beach It is all very well for Peter Hartcher to attack Donald Trump for his vacillation and possible motives for his efforts to end Russia's war against Ukraine, but the unaddressed question that needs answering is whether the best, if not the only, way to end the war is for the Western democracies to briefly take up arms on the side of Ukraine in defence of the principles of national sovereignty and peaceful co-existence. Ross Drynan, Lindfield In his letter, Peter Thornton admires Donald Trump for meeting some of 'the worlds' nastier autocrats' (Letters, August 19). He misses the fact that Trump isn't being altruistic. Rather, he admires them and feels they share something that he doesn't with other leaders. This isn't something for which to offer kudos. Luke Crosthwaite, Surfers Paradise Netanyahu gone astray The current diplomatic spat between Israel and Australia has its origins in Benjamin Netanyahu's desperate fight for political and personal survival (' Wong rebukes Israel's move to cancel visas for Australian diplomats ', August 19). As Netanyahu has become progressively alienated from Israel's sensible centre, he has had to reach out to right-wing nutters like Simcha Rothman, who was denied a visa to Australia, to cobble together a governing coalition. A more moderate Israeli regime would have ended the Gaza conflict long ago. The surviving hostages would have been returned, thousands of Palestinians would still be alive and receiving food and medical services, and many Gazan buildings would still be standing. While extremists like Rothman remain in power, the war will continue and former allies such as Australia will cut more of their ties with Israel. If Netanyahu regards Australia's support for peace and humanity as antisemitic, it shows how far he has strayed from the mainstream of civilised behaviour. Mike Reddy, Vincentia Veteran Middle East peace negotiator (is that an oxymoron?) Aaron David Miller thinks Australia's move to recognise Palestine will only encourage Hamas to hold on (' Stance on Palestine has no impact ', August 19). Naturally, he's supported by the usual pro-Israeli lobbyists. Meanwhile, Egypt and Qatar have negotiated a ceasefire with Hamas, which plainly demonstrates the gulf between rhetoric and reality (' Hamas accepts Arab-mediated ceasefire deal ', August 19). Phil Bradshaw, Naremburn It isn't a surprise that US Middle East adviser Aaron David Miller would declare our stance on Palestine 'has no impact'. It's just another way of creating obstacles to action, like throwing about the term 'antisemitism' at any criticism of Israel and most importantly, the inexcusable actions of Israeli PM Benjamin Netanyahu. The global coverage of the Harbour Bridge march started more federal government action and caused more international consternation. It may be true that this is not having much impact 'on the ground', but I think the surest option now would be demanding the removal of Netanyahu from office. Enough is enough. Anthony Connolly, Beacon Hill Kean for change We owe a lot to Matt Kean for placing the NSW Liberal Party firmly in the climate action camp (' Balancing act: keeping parties cool on climate,' August 19). But with his departure from politics, the job of keeping the party there has been more difficult, given the 'climate wars' that are tearing the federal Coalition apart. In many ways, it's a pity he did not stay on to become opposition leader, but we can't blame him for eschewing this thankless job. He's right where the action is now, and we couldn't ask for a better, more qualified person to be chair of the Climate Change Authority. We should all wish him well. Ken Enderby, Concord Bridging transport gap Defecting from the inner west some years ago, the friends I left behind half jokingly called it a bridge too far, and time proved them right. Buses and trains, regular by day, after dark became scarce, unreliable or affected by dreaded trackwork, as if the city wilfully shut itself down. The metro has miraculously changed all that and made Sydney cosmopolitan (' How a year of metro has shaken up the way Sydney moves ', August 19). I now think nothing of seeing a show, and however late it finishes, a train will arrive within minutes, and I'll open my front door half an hour later. That type of service is no bridge at all. Peter Farmer, Northbridge Unloved tax Perhaps the best way to judge the potential effectiveness of tax changes to repair the budget bottom line is to look at voters' reactions (' Australians want Albanese to act to fix system – except for one tax,' August 19). The greater the effectiveness, the greater the opposition. The GST is a 'lovely tax' because it is paid continually by everyone, even those who reduce their income tax to zero through negative gearing or retirement with superannuation. No surprise that voters are opposed to an increase, despite it being one of the lowest in the world. There are parallels with the historic carbon tax – very effective in reducing emissions as it was paid by everyone, but tax-hating voters voted it down. It is almost surprising that there is more support for a change to negative gearing and capital gains discounts, however, the unfairness of these in favouring the well-off is a key factor. Geoff Harding, Chatswood Best defence After all the speculation about AUKUS, the expectation is that the agreement will be upheld after the Pentagon review by US defence official Elbridge Colby. But is it really in Australia's best interests? Our cities will still be wide open to attack by conventional naval and air forces, as well as by missiles, rockets and drones. Right now, a hostile navy could shell Sydney for half an hour and Australia would have to surrender in the absence of a missile defence system. And we can't count on the US coming in to bail us out. With the government splashing money on anything but defence, we need to spend the AUKUS money not on submarines, but on protecting our cities and deterring aggressors. Paul Everingham, Hamilton Improving lives Your article (' The 'miracle nation' at 60: How Singapore thrived against the odds ' August 11) relies heavily on longstanding detractors with well-worn criticisms to paint a skewed picture of Singapore. They claim that middle-class Singaporeans are 'truly squeezed' and that working-class citizens are 'worst affected by social inequality'. The facts say otherwise. The government heavily subsidises housing, healthcare and education, and provides additional support for those with less. Our progressive system of taxes and transfers has reduced both income and wealth inequalities, with the Gini coefficient, which measures income or wealth inequality, now at its lowest in almost two decades. Singaporeans continue to support the People's Action Party government because it has delivered results and improved lives, especially for the lower-income and broad middle. Anil Nayar, Singapore High Commissioner to Australia Vicious cycles A friend was walking home on the footpath of an inner Sydney street this week when a delivery e-bike slammed into him and knocked him to the ground. The rider flew off the bike onto his helmetless head and was taken to hospital unconscious. My friend sustained injuries to head, thigh, knee and hands. This street has a dedicated cycleway all the way along it. Passers-by urged my friend to take the bike rider's details for possible litigation, but my friend is aware that the rider is most likely a young migrant worker on a temporary visa with no recourse to any support from his employer, no money of his own and in contravention of the law. When will this delivery industry be properly regulated? When will its employees and pedestrians have proper legal protection? Bikes and cycleways proliferate now in Sydney. I am all for them, but I know when I come to Sydney I need to be very, very careful when walking the streets. Bruce Mcintyre, Armidale Playing politics Riley Brown gave it a good stir, but I think the respondents missed the underlying irony (Letters, August 19). The 'identity politics' that so distresses Mr Brown is just a weaponised label invented by conservative culture warriors, outraged at growing societal pressure to be less racist, less misogynist and less inequitable than they'd prefer to be. It attempts to usurp victimhood from the real victims. It's a tactic of distraction. Jeffrey Mellefont, Coogee
Herald Sun
10 hours ago
- Herald Sun
Melbourne's most overvalued postcodes revealed
Melbourne buyers chasing outer and prestige postcodes are being warned to tread carefully, with new research flagging suburbs where prices are at risk of flatlining. According to SuburbData's June 2025 analysis, Beaconsfield Upper, Deepdene, Warrandyte South, Pakenham South, Silvan and Portsea were named as the city's most overvalued. Analysts say desirability isn't in question for the popular areas, but the timing and price are. SuburbData director Jeremy Sheppard said buyers needed to understand the risk of paying peak prices in overheated pockets. 'It may take a while till you get any growth on your investment in an overvalued suburb,' Mr Sheppard said. 'Usually prices will then level out over a few years but buying at the peak of a fast moving market could even mean, in extreme cases, that prices soon fall.' RELATED: Experts say this suburb is better than yours 'F**king nice house' goes viral Block judge lifts lid on dud reno blowouts Whitefox chief executive and Block judge Marty Fox said emotion often drove premiums in hot suburbs, and that could sting later. 'You're paying for yesterday's growth,' Mr Fox said. 'If the market stalls, you've got little insulation, and the holding costs don't care about your paper losses.' However, the head of Gary Peer Real Estate urged buyers not to miss out due to a buzz word, noting that some big price moves were justified when fundamentals change. 'I'm not sure I entirely buy into the term 'overvalued,' Gary Peer said. 'Often, suburbs that appear overvalued have simply caught up to where they should be.' Mr Peer pointed to recent sales in Murrumbeena closing on $4m, an 'unheard of' sum until recently. 'Some might say that's overvalued, but the suburb has transformed: the skyrail removed traffic bottlenecks, new developments brought cafes and restaurants, schools improved, and the overall amenity lifted dramatically,' Mr Peer said. 'In that context, the price growth makes sense.' Melbourne's Most Overvalued Suburbs St Kilda East $1.2m – $348,000 cheaper Box Hill North $1.4m – $135,000 cheaper Doreen $788,000 – $49,000 cheaper Noble Park $794,000 – $42,000 cheaper Kings Park $682,000 – $39,000 cheaper St Albans $721,000 – $34,000 cheaper Deer Park $653,000 – $35,000 cheaper Officer $756,000 – $32,000 cheaper Westmeadows $765,000 – $6000 cheaper Mickleham $714,000 – $2000 cheaper Source: SuburbData, June 2025, suburbs ranked using a blend of demand, supply, and price gap metrics compared with neighbouring areas. MORE: Bold French move puts $15m+ price on Melb home Crazy things stars of The Block do for publicity Melbourne's most expensive shop sitting empty
West Australian
12 hours ago
- West Australian
West Aussies have lost $30 million to celebrity and cryptocurrency scams since 2024
Imagine your entire superannuation and life savings vanishing in one day — all because of one convincing video from social media. West Australians are increasingly being duped by celebrity and crypto cons, resulting in millions of dollars being stolen. New research by WA ScamNet revealed that almost 50 WA residents have fallen victim to investment scams in 2025, resulting in $10.8 million being stolen. In 2024 alone, 76 WA victims reported handing over nearly $19.4 million to scammers and their schemes. One victim was reported to have lost an astonishing $10 million after being lured in by a 'deepfake' online celebrity endorsement video. Deepfakes are lifelike impersonations of real people, oftentimes celebrities, created by artificial intelligence. Australian Competition and Consumer Commission deputy chair Catriona Lowe said that the WA victim was just one of many Aussies falling for the scams. 'We know of an Australian man who lost $80,000 after seeing a deepfake Elon Musk video interview on social media, clicking the link and registering his details through an online form,' Ms Lowe said. Celebrity deepfake scams have exploded globally with the rise of AI, with one highly notable incident in January resulting in a French woman revealing that she had lost $1.3 million to 'actor Brad Pitt' — except it wasn't him, it was a scammer using deepfake images. Consumer Protection commissioner Trish Blake said that scammers were getting better at using celebrity images to dupe vulnerable individuals. 'The use of celebrity images, increasingly in deepfake videos, to endorse investment schemes is a deliberate tactic by scammers to fabricate legitimacy and entice victims with promises of rapid wealth,' she said. 'Being told to deposit more money to access your funds, citing taxes or other fees is a major red flag of an investment scam, so too are pressure tactics like being told your account will be frozen if you don't invest more.' Another investment scam causing distress in 2024 and 2025 were fake cryptocurrency trading, with victims believing they were investing in 'low-risk, high-return' schemes. WA ScamNet observed a rise in scammers infiltrating legitimate platforms to sell fraudulent cryptocurrency coins or 'mystery coins' that drain wallets of legitimate currency. 'Crypto scammers thrive on market complexity, using confusion and fake 'insider knowledge' to trick you,' Ms Blake said. 'They call their victims regularly, offering to set up their trading profiles to gain access to devices, while manipulating them into handing over their superannuation to invest.' Consumer Protections WA urges Aussies interested in cryptocurrency to conduct thorough research, read websites critically and be suspicious of promises that sound too good to be true. Ms Blake warned that people who have fallen victim to scams previously were at higher risk of scammers returning for a second attempt. 'After falling victim to an investment scam, many are again approached by so-called 'recovery experts', claiming they can retrieve lost funds,' she said. 'These follow-up scams prey on hope and desperation and can lead to even greater losses.' Further information about scams and where to report them can be found on the WA ScamNet website .
