SYDNEY, Aug 18 (Reuters) – Qantas Airways (QAN.AX), Australia’s flag carrier, has been ordered to pay A$90 million ($58.64 million) after the Federal Court ruled the airline illegally dismissed 1,800 ground employees and replaced them with outsourced contractors during the COVID-19 crisis.
Federal Court Judge Michael Lee imposed one of the heaviest penalties under Australia’s workplace laws, saying it was designed to ensure the breach could not be seen as merely “the cost of doing business.”
“My present focus is on achieving real deterrence — including general deterrence to large public companies that might otherwise be tempted to weigh the rewards of unlawful conduct against the risks of enforcement,” Lee said in his judgment.
Of the total penalty, A$50 million will be directed to the Transport Workers’ Union (TWU), which brought the case on behalf of the 1,820 affected employees.
This ruling follows a separate settlement reached around nine months ago, in which Qantas and the TWU agreed on a A$120 million compensation package for the sacked staff.
Qantas shares dipped 0.13% in early trading following the announcement.
Source: Reuters
