Qantas fined $90 million for unlawful sacking of | Australian Markets
Qantas has been ordered to pay $90 million for illegally outsourcing ground workers in 2020, following years of courtroom battles and appeals that delayed compensation for more than 1,800 staff.
Qantas outsourced more than 1800 baggage handlers, cleaners and ground workers in a transfer the Federal Court ruled was designed to curb union bargaining energy in wage negotiations.
The embattled airline’s appeal to the High Court was unsuccessful, paving the best way for the penalty to be awarded on Monday.
The Transport Workers Union sought the utmost penalty of $121 million, whereas Qantas urged Justice Michael Lee to impose a “mid-range” penalty between $40 million and $80 million.
He famous Qantas had apologised publicly however then had tried to disclaim any compensation funds to the affected staff.
Federal Judge Michael Lee stated the airline’s apology was “the wrong kind of sorry,” centered on the company relatively than the lives impacted.
Qantas should pay the hefty invoice on high of a $120 million compensation cost it has made to the affected ground workers for their financial loss, ache and struggling following the outsourcing.
However, Justice Lee stated he didn’t have enough proof to be satisfied these funds can be made.
He emphasised that the penalty was meant to discourage massive corporations from breaking the law for revenue, setting a robust instance for company Australia as affected workers lastly put together to obtain long-awaited compensation.Justice Lee decided that $50 million of the $90 million penalty in opposition to Qantas will probably be awarded to the Transport Workers Union for its pivotal function in efficiently pursuing the case.
He famous that, in contrast to the Fair Work Ombudsman, Government companies didn’t act, and the Commonwealth did not provoke proceedings.
The union took on vital financial risk in pursuing the case for sacked staff, with Justice Lee stating, “greater rewards might be appropriate in the circumstances of greater risk”, to encourage others to pursue comparable instances.
The remaining $40 million is but to be allotted.
The courtroom was advised the scandal-plagued airline started to lastly settle for duty for its actions in 2023, Justice Lee famous, which coincided with the departure of former CEO Alan Joyce.
The courtroom was full of union members and representatives, who hugged and exchanged smiles after Justice Lee handed down his choice.
It comes after Qantas additionally offered tickets to cancelled flights for a number of years, triggering more legal turmoil and a $100 million positive after it was sued by the Australian Competition and Consumer Commission.
– with AAP
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