Qantas Airways Ordered to Pay A$170,000 in Damages to Unlawfully Sacked Workers
In a recent court ruling on Oct 21, Qantas Airways, one of Australia’s leading airlines, was ordered to pay a significant sum of A$170,000 to three baggage handlers who were unlawfully sacked in 2020. This decision implies a potentially substantial damages bill for a larger lawsuit involving approximately 1,700 former workers whose jobs were outsourced.
Judge’s Ruling
- Federal Court Judge Michael Lee mandated that Qantas pay each of the sacked workers different amounts for non-economic loss, totaling A$170,000.
- The judge highlighted the harm caused to the workers when the airline laid them off to prevent industrial action.
Implications for Qantas
- The carrier must consider these payouts as "test cases" as it negotiates with a union on the total damages bill for all former ground workers.
- Judge Lee found that if Qantas had not illegally outsourced its ground handling operations in 2020, it would have done so lawfully in 2021, potentially saving around A$100 million annually.
Reputational Challenges
- This ruling comes as Qantas works to recover from a period of reputational challenges related to its actions during and after pandemic restrictions from 2020 to 2022.
- The airline previously settled a regulator lawsuit by agreeing to pay A$120 million for selling tickets on flights that were already cancelled post-border reopening. It also faced accusations of pressuring the government regarding rival airlines.
Moving Forward
- The Transport Workers’ Union (TWU), which brought the industrial dismissal case, emphasized the importance of appropriate compensation for affected workers.
- Qantas CEO Vanessa Hudson expressed regret over the impact on workers and acknowledged the need for the company to learn from this experience.
Next Steps
- Judge Lee instructed Qantas and the TWU to discuss compensation for all sacked workers and reconvene in court on Nov 15.
In conclusion, this court ruling holds significant financial and reputational implications for Qantas. It underscores the importance of fair treatment of employees and the consequences of unlawful dismissals. As consumers and investors, it is crucial to consider a company’s ethical practices and legal compliance when making decisions about supporting or investing in their products or services.