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Qantas fined €50m for illegally sacking ground staff
Qantas fined €50m for illegally sacking ground staff

Irish Examiner

timea day ago

  • Business
  • Irish Examiner

Qantas fined €50m for illegally sacking ground staff

Qantas has been fined a record $90m (€50.2m) for illegally firing 1,820 baggage handlers and other ground staff in 2020, taking the cost of its controversial outsourcing decision to more than $200m (€111.5m). Justice Michael Lee on Monday handed down his decision on the penalty, nine months after Qantas and the Transport Workers' Union agreed the airline would pay $120m in compensation to the sacked workers. Reading his judgment in the federal court in Sydney, Lee said the $90m (€50.2m) penalty was 'slightly less than 75% off the maximum penalty', and that $50m of the penalty would go to the TWU. Lee said allocating a significant proportion of the fine would incentivise unions to pursue potential breaches of the enhance the Fair Work Act when the federal ombudsman failed to act, as he said it had in the case of Qantas. 'It will send a message to Qantas and other well-resourced employers that not only will they face potentially significant penalties for the breach of the act, but those penalties will be provided to trade unions to resource [them] to fulfil their statutory roles as enforcers of the act,' he said. Lee reserved his decision on who should receive the other $40m. He described the lengthy legal battle between the TWU and Qantas as 'no ordinary case' and said he had 'hesitation in reaching a conclusion' as to whether Qantas was 'truly contrite or rather engaging in performative remorse'. '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, rather than a remorse for the damage done to the affected workers,' Lee said. Lee said he felt a 'sense of disquiet and uncertainty as to precisely what went on within the upper echelons of Qantas leading up to the outsourcing decision' and described the airline as 'the wrong kind of sorry'. Among the reasons Lee gave for imposing the record penalty was the airline's attempts to obscure the decision-making process behind the outsourcing and the role the then chief executive officer, Dubliner Alan Joyce, had played. Lee was also critical of the way Qantas handled the legal process, saying its public relations department had rushed to send out press releases 'spinning' court decisions in the airline's favour. He criticised the decision not to have Vanessa Hudson, the airline's former chief financial officer and now chief executive, testify in court. Lee said her evidence would have helped him assess whether the airline's 'expressions of contrition' and its promises of cultural change were genuine. After the decision, Hudson said the outsourcing decision had 'caused genuine hardship' for the affected people. 'We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,' she said. 'Over the past 18 months we've worked hard to change the way we operate … This remains our highest priority as we work to earn back the trust we lost.' The $90m penalty will be paid in accordance with the orders of the court. Qantas has also paid $120m into the compensation fund for all affected former employees, which is being administered by Maurice Blackburn. The TWU national secretary, Michael Kaine, said the union had won a 'David and Goliath' battle and secured 'the most significant industrial outcome in Australia's history'. The Guardian

Qantas fined US$59mil for firing 1,820 employees during Covid-19 pandemic
Qantas fined US$59mil for firing 1,820 employees during Covid-19 pandemic

The Star

time2 days ago

  • Business
  • The Star

Qantas fined US$59mil for firing 1,820 employees during Covid-19 pandemic

SYDNEY (Bloomberg): Qantas Airways Ltd. was ordered to pay A$90 million ($59 million) for illegally sacking almost 2,000 ground workers during the Covid-19 pandemic, in a court judgment that included sharp criticism of the airline's culture and raised questions about how much the company has changed. In a ruling on Monday, the Federal Court of Australia told Qantas to pay A$50 million of the penalty directly to the Transport Workers' Union, which had sued the airline over the firings. A portion of the remainder, to be determined at a later hearing, might go to some of the 1,820 sacked workers. The fine comes on top of last year's A$120 million compensation deal for the impacted former employees. Qantas outsourced ground-handling operations at 10 Australian airports in late 2020, under then-Chief Executive Officer Alan Joyce, as the pandemic brought aviation to a standstill. The Transport Workers' Union argued staff were axed to avoid looming negotiations over pay and conditions and potential strikes. Reading his hour-long judgment, Justice Michael Lee criticized the culture that allowed the firings to proceed. He also questioned the airline's degree of contrition and its commitment to change, noting Qantas's "unrelenting and aggressive litigation strategy' as it pursued the case through the courts. Lee said he was left "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 illegal firings were one of several scandals and corporate missteps at Qantas during the pandemic and its immediate aftermath, including accusations from the regulator that Qantas sold seats on thousands of flights that the airline had already scrapped. The airline agreed to pay a further A$120 million in penalties and compensation for the ghost flights. Resolving the ground handlers' case has been a key part of Qantas' rehabilitation under Joyce's successor, Vanessa Hudson, who took the helm in late 2023. Justice Lee's stinging words on Monday now reopen the debate about who was to blame, and what's being done, following the worst reputational crisis in the airline's history. 'Performative Remorse' Lee expressed his dissatisfaction that Hudson hadn't appeared in court, but had instead apologized through company statements. "It is one thing for the 'Qantas News Room' to issue press releases by a CEO saying sorry; it is quite another for written assertions of contrition, recognition of wrong and cultural change to be tested in a courtroom by senior counsel for a party submitting that Qantas is engaged in performative remorse,' Justice Lee said in his judgment. Subscribe to The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you listen. Hudson again apologized in a statement after the judgment. "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 said. "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.' Lee said that while he accepts Qantas is sorry, he said it's probably "the wrong kind of sorry.' "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 rather than either remorse for the damage done to the affected workers, or concern it engaged in the contravening conduct,' Lee said. Former CEO Joyce resurfaced in Sydney last week and defended his record - and the steps taken - when he ran Qantas. In a speech at an aviation conference, he said "hard and painful' decisions made during the Covid pandemic saved Qantas from collapse. "Qantas, like many airlines, also faced very challenging decisions about its workforce. I acknowledge that,' Joyce said in his speech, without directly referring to sacking the ground workers. TWU National Secretary Michael Kaine, speaking after Monday's judgment, described Qantas' actions in 2020 as "ruthless and self-interested.' "Today's decision is a A$90 million message to corporate Australia that workers will stand up for what's right,' Kaine said. Qantas had faced a maximum A$121 million penalty for illegally sacking the workers. -- ©2025 Bloomberg L.P.

Afternoon Update: Qantas fined $90m; far-right Israeli MP barred from Australia; and Margaret Pomeranz remembers David Stratton
Afternoon Update: Qantas fined $90m; far-right Israeli MP barred from Australia; and Margaret Pomeranz remembers David Stratton

The Guardian

time2 days ago

  • Business
  • The Guardian

Afternoon Update: Qantas fined $90m; far-right Israeli MP barred from Australia; and Margaret Pomeranz remembers David Stratton

Good afternoon. Qantas has been fined a record $90m in the federal court for illegally firing 1,820 baggage handlers and other ground staff during Covid lockdowns in 2020, taking the cost of its controversial outsourcing decision to more than $200m. Justice Michael Lee handed down his decision on the penalty on Monday, nine months after Qantas and the Transport Workers' Union agreed the airline would pay $120m in compensation to the sacked workers. He described the lengthy legal battle between the TWU and Qantas as 'no ordinary case' and said he had 'hesitation in reaching a conclusion' as to whether Qantas was 'truly contrite or rather engaging in performative remorse'. The TWU national secretary, Michael Kaine, said the union had won a 'David and Goliath' battle against the odds and secured 'the most significant industrial outcome in Australia's history'. Qantas has accepted the landmark fine, with the CEO, Vanessa Hudson, saying it 'holds us accountable'. Far-right Israeli politician barred from Australia ahead of speaking tour AFL integrity unit investigate Izak Rankine over alleged homophobic slur Trump rules out Ukraine reclaiming Crimea or joining Nato as European leaders gather in Washington Bolivia presidential election: preliminary results put two rightwing candidates in runoff vote Terence Stamp remembered by Priscilla director Stephan Elliott: 'Those eyes turned everybody to jelly' 'Skibidi', 'delulu' and 'tradwife' among words added to Cambridge Dictionary A shark that bit a large chunk out of a surfer's board on Monday morning has prompted the temporary closure of Cabarita beach on the New South Wales far north coast, prompting surfing legend Kelly Slater to describe the man's injury-free escape as 'incredible'. A Facebook post from the Tweed Shire council noted that 'fortunately, the bite missed the rider'. 'I felt amputated – as though one half of me has gone. There's no more Margaret and David. Just as there is no more David and Susie.' – Margaret Pomeranz Australia watched Pomeranz and the late David Stratton discuss films for decades. Offscreen, their friendship was one of deep respect, as Pomeranz writes: 'I had his back, he had mine.' How doomsday prepping went mainstream in Australia It used to be a view held by a secretive few on the fringes of society, but preparing for disaster has now grown in popularity, with many believing having a backup plan just makes good sense. Senior reporter Kate Lyons spoke to Reged Ahmad on whether there is value in preparing for an apocalypse that may never come. Sign up to Afternoon Update Our Australian afternoon update breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Listen to the episode here AI has created a new breed of cat video: addictive, disturbing and nauseatingly quick soap operas Mostly soundtracked by cats miaowing a Billie Eilish song, these AI-generated fantastias tell tales of cheating, revenge and violence – and as Madison Griffiths writes, they are being watched by millions. Today's starter word is: CLOT. You have five goes to get the longest word including the starter word. Play Wordiply. Enjoying the Afternoon Update? Then you'll love our Morning Mail newsletter. Sign up here to start the day with a curated breakdown of the key stories you need to know, and complete your daily news roundup. And follow the latest in US politics by signing up for This Week in Trumpland.

The humiliation of Qantas is now complete
The humiliation of Qantas is now complete

Sydney Morning Herald

time2 days 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 humiliation of Qantas is now complete
The humiliation of Qantas is now complete

The Age

time2 days 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.

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