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8h ago

Qantas Fined A$90 Million in Record Labor-Law Penalty Over Pandemic Layoffs

Judge Michael Lee said the near-maximum penalty must deter firms from treating unlawful layoffs as routine business costs.

Zwei Maschinen der australischen Fluggesellschaft Qantas am Flughafen Melbourne.
SYDNEY, AUSTRALIA - FEBRUARY 22: A Qantas plane takes off from Sydney International Airport on February 22, 2024 in Sydney, Australia. Qantas has demonstrated a significant financial turnaround, reporting a record $2.47 billion profit for the 2022-23 fiscal year, marking a stark change from the previous year's $1.86 billion loss. The airline's strong performance was attributed to robust travel demand and high ticket prices, with domestic earnings before interest and taxes (EBIT) jumping to 18.2%, representing a 50% increase in profit margins over the past six years. The company's return on invested capital also increased to 103.6%, reflecting its improved financial position and operational performance. (Photo by Jenny Evans/Getty Images)
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Qantas muss 90 Millionen Australische Dollar Strafe für illegale Massenkündigungen zahlen.

Overview

  • The Federal Court directed A$50 million of the A$90 million fine to the Transport Workers Union and reserved the remaining A$40 million for later allocation.
  • This penalty is on top of a December settlement that granted A$120 million in compensation to the roughly 1,800 ground staff dismissed in 2020.
  • Judge Lee criticised Qantas for showing no remorse and warned that stripping workers of their jobs undermined their dignity.
  • Qantas CEO Vanessa Hudson issued a sincere apology to the affected employees and their families after the ruling.
  • Legal experts called it Australia’s largest ever labour-law penalty and said it sets a strong precedent for pandemic-era workforce restructurings.