Latest news with #JusticeLee
Sydney Morning Herald
a day ago
- Business
- Sydney Morning Herald
The humiliation of Qantas is now complete
'If any further evidence was needed as to the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune,' the judgement said. 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.
The Age
a day ago
- Business
- The Age
The humiliation of Qantas is now complete
'If any further evidence was needed as to the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune,' the judgement said. 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.
West Australian
a day ago
- Business
- West Australian
‘Wrong kind of sorry': Qantas hit with $90m penalty for illegally sacking 1800 ground staff
Qantas has been hit with a landmark $90 million fine for illegally sacking more than 1800 ground workers five years ago, after a Federal Court judge expressed the airline had shown the 'wrong kind of sorry'. Justice Michael Lee ordered Qantas to pay $50m to the Transport Workers Union — which brought the case — saying it 'would facilitate and promote' unions to take on similar cases where the Fair Work Ombudsman fails to act. In a statement, Qantas said the company accepted the penalty and judgement which held it 'accountable for our actions that caused real harm to our employees'. It concludes a saga that began in 2020, when Qantas outsourced baggage handlers, cleaners and other ground staff, axing more than 1800 staff, as COVID-19 took a toll on aviation. Qantas' appeal to the High Court was unsuccessful, paving the way for the penalty to be awarded. 'Although the outsourcing decision was a single act, it was a carefully planned act directed at, and affecting, a very large number of employees,' Justice Lee said. He accepted that Qantas was sorry for the illegal outsourcing, but wasn't convinced the measure of regret was 'significant' and described it as 'the wrong kind of sorry'. The fact former Qantas boss Alan Joyce's name was kept out of direct involvement in the outsourcing decision also left Justice Lee 'with a sense of disquiet and uncertainty as to precisely what went on within the upper echelons of Qantas leading up to the outsourcing decision'. The union sought the maximum penalty of $121m, while Qantas urged Justice Lee to impose a 'mid-range' fine of between $40m and $80m. At $90m, the penalty represents 75 per cent of the maximum and is the biggest employer penalty in Australian corporate history. The remaining $40m is yet to be allocated, but could go back to the 1820 workers who lost their jobs. Qantas late last year reluctantly agreed to pay $120m in compensation to the sacked workers, taking the overall bill for its wrongdoings to $210m. 'It will send a message to Qantas and other well-resourced employers that not only will they face potentially significant penalties for breaches of the (Fair Work act), but those penalties will be provided to trade unions to resource those unions in their role as enforcers of the (FWA),' Justice Lee said on Monday. He also criticised Qantas chief Vanessa Hudson for failing to appear before the court. Justice Lee noted Qantas chief people officer Catherine Walsh during the hearings apologised for the company's behaviour, but 'it seemed to me obvious that the person who could give the most direct and compelling evidence of corporate change and contrition' was Ms Hudson. 'Going back to the issue as to whether Qantas is truly contrite, I have hesitation in reaching a conclusion,' he said. Ms Hudson on Monday apologised for the 'genuine hardship' it caused its former team and their families. 'Over the past 18 months we've worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost,' she said. The national carrier is working to regain the public's trust after a raft of scandals left the airline's reputation in tatters. These included a botched COVID-19 credits program and and a post-pandemic restart of domestic and international services marred by poor customer service, lost luggage, flight delays and cancellations. Maurice Blackburn principal Josh Bornstein, who represented the TWU in the case, said the record penalty meant corporate Australia was on notice that courts would not tolerate blatant attacks on workers' rights.
The Advertiser
21-05-2025
- Business
- The Advertiser
Qantas makes mercy plea for illegal sackings 'mistake'
Qantas did not deliberately break the law when it illegally sacked 1820 workers and its "mistake" warrants a "mid-range" penalty, a court has been told. Federal Court Justice Michael Lee has heard final submissions on the penalty to be imposed on Qantas for the biggest case of illegal sackings in Australian history. Last year, Qantas agreed to pay $120 million to the ground staff as compensation for their economic loss, pain and suffering since their jobs were outsourced during the COVID-19 pandemic. The Transport Workers Union is seeking the maximum penalty of $121 million and an order that the money be paid to the union, while Qantas has urged Justice Lee to impose a "mid-range" penalty between $40 million and $80 million. The airline's "failure was in the territory of mistake, rather than deliberate breach of the law," Qantas counsel Justin Gleeson SC told the court. "The failure has now been exposed and recognised by the contravener, and the contravener has put in place appropriate steps to minimise the risk of the failure occurring again," he said on Wednesday. Qantas argued that its actions were driven by "business calamities" caused by the pandemic, not exploitation, and the illegal sackings were the result of a single decision and therefore only one breach of the law. It also pointed to the $120 million compensation deal and and its expression of contrition for its actions. On Monday, Qantas chief people officer Catherine Walsh told the court the airline was "deeply sorry" for the impact on the workers, their family and friends and the union. Mr Gleeson argued the court should not infer negatively from the failure to call Qantas chief executive Vanessa Hudson as a witness, and emphasised concrete steps she had taken, including rebuilding relationships, creating an inclusive culture and public apologies. "There's a recognition that a change needed to be made ... there was a top down culture which impacted empowerment and a willingness to challenge or speak up on issues or decisions of concern," he said. "There's been a significant refresh of the group leadership team. Seventy per cent are either new to Qantas or to their role or to the (team)" Most of the submissions at Wednesday's hearing focused on meetings between senior managers at Qantas, a group management committee meeting and a board meeting. After initially saying he would aim to deliver a judgment on Friday, Justice Lee reserved his decision. At a protest at Brisbane Airport on Wednesday, the TWU called on airlines, airports, governments and regulators to ensure fair standards at companies like Swissport, which took over much of the work done by the sacked Qantas workers. "That work has been shoved off to operators like Swissport, who have a horrific international reputation for maiming workers, for underpaying workers, for wage theft," TWU national secretary Michael Kaine said. Recent safety visits revealed that in Brisbane, Swissport has more than 400 safety reports a month, he said. "The Albanese government must put in place a Safe and Secure Skies Commission to stop the spiral of dangerously low standards and ensure there's oversight in such a vital industry to our island nation." Qantas did not deliberately break the law when it illegally sacked 1820 workers and its "mistake" warrants a "mid-range" penalty, a court has been told. Federal Court Justice Michael Lee has heard final submissions on the penalty to be imposed on Qantas for the biggest case of illegal sackings in Australian history. Last year, Qantas agreed to pay $120 million to the ground staff as compensation for their economic loss, pain and suffering since their jobs were outsourced during the COVID-19 pandemic. The Transport Workers Union is seeking the maximum penalty of $121 million and an order that the money be paid to the union, while Qantas has urged Justice Lee to impose a "mid-range" penalty between $40 million and $80 million. The airline's "failure was in the territory of mistake, rather than deliberate breach of the law," Qantas counsel Justin Gleeson SC told the court. "The failure has now been exposed and recognised by the contravener, and the contravener has put in place appropriate steps to minimise the risk of the failure occurring again," he said on Wednesday. Qantas argued that its actions were driven by "business calamities" caused by the pandemic, not exploitation, and the illegal sackings were the result of a single decision and therefore only one breach of the law. It also pointed to the $120 million compensation deal and and its expression of contrition for its actions. On Monday, Qantas chief people officer Catherine Walsh told the court the airline was "deeply sorry" for the impact on the workers, their family and friends and the union. Mr Gleeson argued the court should not infer negatively from the failure to call Qantas chief executive Vanessa Hudson as a witness, and emphasised concrete steps she had taken, including rebuilding relationships, creating an inclusive culture and public apologies. "There's a recognition that a change needed to be made ... there was a top down culture which impacted empowerment and a willingness to challenge or speak up on issues or decisions of concern," he said. "There's been a significant refresh of the group leadership team. Seventy per cent are either new to Qantas or to their role or to the (team)" Most of the submissions at Wednesday's hearing focused on meetings between senior managers at Qantas, a group management committee meeting and a board meeting. After initially saying he would aim to deliver a judgment on Friday, Justice Lee reserved his decision. At a protest at Brisbane Airport on Wednesday, the TWU called on airlines, airports, governments and regulators to ensure fair standards at companies like Swissport, which took over much of the work done by the sacked Qantas workers. "That work has been shoved off to operators like Swissport, who have a horrific international reputation for maiming workers, for underpaying workers, for wage theft," TWU national secretary Michael Kaine said. Recent safety visits revealed that in Brisbane, Swissport has more than 400 safety reports a month, he said. "The Albanese government must put in place a Safe and Secure Skies Commission to stop the spiral of dangerously low standards and ensure there's oversight in such a vital industry to our island nation." Qantas did not deliberately break the law when it illegally sacked 1820 workers and its "mistake" warrants a "mid-range" penalty, a court has been told. Federal Court Justice Michael Lee has heard final submissions on the penalty to be imposed on Qantas for the biggest case of illegal sackings in Australian history. Last year, Qantas agreed to pay $120 million to the ground staff as compensation for their economic loss, pain and suffering since their jobs were outsourced during the COVID-19 pandemic. The Transport Workers Union is seeking the maximum penalty of $121 million and an order that the money be paid to the union, while Qantas has urged Justice Lee to impose a "mid-range" penalty between $40 million and $80 million. The airline's "failure was in the territory of mistake, rather than deliberate breach of the law," Qantas counsel Justin Gleeson SC told the court. "The failure has now been exposed and recognised by the contravener, and the contravener has put in place appropriate steps to minimise the risk of the failure occurring again," he said on Wednesday. Qantas argued that its actions were driven by "business calamities" caused by the pandemic, not exploitation, and the illegal sackings were the result of a single decision and therefore only one breach of the law. It also pointed to the $120 million compensation deal and and its expression of contrition for its actions. On Monday, Qantas chief people officer Catherine Walsh told the court the airline was "deeply sorry" for the impact on the workers, their family and friends and the union. Mr Gleeson argued the court should not infer negatively from the failure to call Qantas chief executive Vanessa Hudson as a witness, and emphasised concrete steps she had taken, including rebuilding relationships, creating an inclusive culture and public apologies. "There's a recognition that a change needed to be made ... there was a top down culture which impacted empowerment and a willingness to challenge or speak up on issues or decisions of concern," he said. "There's been a significant refresh of the group leadership team. Seventy per cent are either new to Qantas or to their role or to the (team)" Most of the submissions at Wednesday's hearing focused on meetings between senior managers at Qantas, a group management committee meeting and a board meeting. After initially saying he would aim to deliver a judgment on Friday, Justice Lee reserved his decision. At a protest at Brisbane Airport on Wednesday, the TWU called on airlines, airports, governments and regulators to ensure fair standards at companies like Swissport, which took over much of the work done by the sacked Qantas workers. "That work has been shoved off to operators like Swissport, who have a horrific international reputation for maiming workers, for underpaying workers, for wage theft," TWU national secretary Michael Kaine said. Recent safety visits revealed that in Brisbane, Swissport has more than 400 safety reports a month, he said. "The Albanese government must put in place a Safe and Secure Skies Commission to stop the spiral of dangerously low standards and ensure there's oversight in such a vital industry to our island nation." Qantas did not deliberately break the law when it illegally sacked 1820 workers and its "mistake" warrants a "mid-range" penalty, a court has been told. Federal Court Justice Michael Lee has heard final submissions on the penalty to be imposed on Qantas for the biggest case of illegal sackings in Australian history. Last year, Qantas agreed to pay $120 million to the ground staff as compensation for their economic loss, pain and suffering since their jobs were outsourced during the COVID-19 pandemic. The Transport Workers Union is seeking the maximum penalty of $121 million and an order that the money be paid to the union, while Qantas has urged Justice Lee to impose a "mid-range" penalty between $40 million and $80 million. The airline's "failure was in the territory of mistake, rather than deliberate breach of the law," Qantas counsel Justin Gleeson SC told the court. "The failure has now been exposed and recognised by the contravener, and the contravener has put in place appropriate steps to minimise the risk of the failure occurring again," he said on Wednesday. Qantas argued that its actions were driven by "business calamities" caused by the pandemic, not exploitation, and the illegal sackings were the result of a single decision and therefore only one breach of the law. It also pointed to the $120 million compensation deal and and its expression of contrition for its actions. On Monday, Qantas chief people officer Catherine Walsh told the court the airline was "deeply sorry" for the impact on the workers, their family and friends and the union. Mr Gleeson argued the court should not infer negatively from the failure to call Qantas chief executive Vanessa Hudson as a witness, and emphasised concrete steps she had taken, including rebuilding relationships, creating an inclusive culture and public apologies. "There's a recognition that a change needed to be made ... there was a top down culture which impacted empowerment and a willingness to challenge or speak up on issues or decisions of concern," he said. "There's been a significant refresh of the group leadership team. Seventy per cent are either new to Qantas or to their role or to the (team)" Most of the submissions at Wednesday's hearing focused on meetings between senior managers at Qantas, a group management committee meeting and a board meeting. After initially saying he would aim to deliver a judgment on Friday, Justice Lee reserved his decision. At a protest at Brisbane Airport on Wednesday, the TWU called on airlines, airports, governments and regulators to ensure fair standards at companies like Swissport, which took over much of the work done by the sacked Qantas workers. "That work has been shoved off to operators like Swissport, who have a horrific international reputation for maiming workers, for underpaying workers, for wage theft," TWU national secretary Michael Kaine said. Recent safety visits revealed that in Brisbane, Swissport has more than 400 safety reports a month, he said. "The Albanese government must put in place a Safe and Secure Skies Commission to stop the spiral of dangerously low standards and ensure there's oversight in such a vital industry to our island nation."
West Australian
21-05-2025
- Business
- West Australian
Qantas makes mercy plea for illegal sackings 'mistake'
Qantas did not deliberately break the law when it illegally sacked 1820 workers and its "mistake" warrants a "mid-range" penalty, a court has been told. Federal Court Justice Michael Lee has heard final submissions on the penalty to be imposed on Qantas for the biggest case of illegal sackings in Australian history. Last year, Qantas agreed to pay $120 million to the ground staff as compensation for their economic loss, pain and suffering since their jobs were outsourced during the COVID-19 pandemic. The Transport Workers Union is seeking the maximum penalty of $121 million and an order that the money be paid to the union, while Qantas has urged Justice Lee to impose a "mid-range" penalty between $40 million and $80 million. The airline's "failure was in the territory of mistake, rather than deliberate breach of the law," Qantas counsel Justin Gleeson SC told the court. "The failure has now been exposed and recognised by the contravener, and the contravener has put in place appropriate steps to minimise the risk of the failure occurring again," he said on Wednesday. Qantas argued that its actions were driven by "business calamities" caused by the pandemic, not exploitation, and the illegal sackings were the result of a single decision and therefore only one breach of the law. It also pointed to the $120 million compensation deal and and its expression of contrition for its actions. On Monday, Qantas chief people officer Catherine Walsh told the court the airline was "deeply sorry" for the impact on the workers, their family and friends and the union. Mr Gleeson argued the court should not infer negatively from the failure to call Qantas chief executive Vanessa Hudson as a witness, and emphasised concrete steps she had taken, including rebuilding relationships, creating an inclusive culture and public apologies. "There's a recognition that a change needed to be made ... there was a top down culture which impacted empowerment and a willingness to challenge or speak up on issues or decisions of concern," he said. "There's been a significant refresh of the group leadership team. Seventy per cent are either new to Qantas or to their role or to the (team)" Most of the submissions at Wednesday's hearing focused on meetings between senior managers at Qantas, a group management committee meeting and a board meeting. After initially saying he would aim to deliver a judgment on Friday, Justice Lee reserved his decision. At a protest at Brisbane Airport on Wednesday, the TWU called on airlines, airports, governments and regulators to ensure fair standards at companies like Swissport, which took over much of the work done by the sacked Qantas workers. "That work has been shoved off to operators like Swissport, who have a horrific international reputation for maiming workers, for underpaying workers, for wage theft," TWU national secretary Michael Kaine said. Recent safety visits revealed that in Brisbane, Swissport has more than 400 safety reports a month, he said. "The Albanese government must put in place a Safe and Secure Skies Commission to stop the spiral of dangerously low standards and ensure there's oversight in such a vital industry to our island nation."
