None come close to the A$90 million Qantas Airways will be forced to pay. One Australian court ruled that the airline had unlawfully sacked some 1,700 ground workers during the COVID-19 pandemic. This historic ruling came after a five-year legal battle. This showdown largely revolved around the airline’s unpopular 2020 decision to outsource all its ground operations workers.
With the pandemic halting the entire aviation industry, Qantas made some of the most drastic operational changes. The airline had argued that outsourcing was necessary for its financial success. Its purpose was to mitigate the extreme economic consequences resulting from worldwide bans on travel. It was this decision to permit a mass dismissal of workers that has just been determined unlawful by the court.
Qantas is staring down the barrel of a A$90 million fine. On top of that, the airline promised to make A$120 million of compensatory payments to laid-off employees, starting in 2024. In response to the backlash it faced, the airline crafted this compensation agreement. This response followed its far more controversial moves during the pandemic.
The decision is being hailed as a significant win for the Transport Workers’ Union. They have been tireless fighters for the impacted workers. The union expressed satisfaction with the outcome, describing it as a “moment of justice for loyal workers who’d loved their jobs at the airline.”
“This marks the end of a David and Goliath five-year battle.” – Transport Workers’ Union
Despite Qantas’s attempts to overturn the decision through multiple appeals, the court’s verdict stands, establishing one of the largest employer penalties in Australia’s history. This current case is a stark reminder of all legal obligations companies have toward their employees. It’s more important than ever, given the extraordinary economic hardship we’re facing.