In a scathing judgment, a Federal Court judge has ordered Qantas Airways to pay up to $170,000 to three workers who were illegally sacked during the tumultuous early days of the Covid-19 pandemic. The ruling, handed down on Monday, has also sent the airline giant into mediation with the Transport Workers Union as nearly 1,700 former baggage handlers, cleaners and other ground staff seek rightful compensation.
Justice Michael Lee pulled no punches in his rebuke of Qantas, criticizing the airline for the “vast legal costs” it chose to sink into defending the illegal terminations. The court had previously found Qantas’ actions to be in breach of the Fair Work Act, driven in part by a desire to sidestep potential industrial action.
A Costly Fight for Qantas
The road to this point has been a long and winding one for the affected workers. Qantas had appealed the initial ruling of illegal sacking all the way to the High Court, but to no avail. On Monday, Justice Lee made particular note of the airline’s use of “five senior counsel” in its failed bid to overturn the findings.
In determining compensation for the three test cases, the court considered what would have transpired had the outsourcing not occurred. Justice Lee concluded that the workers would likely have been retrenched a year later in 2021 regardless, owing to Qantas’ “laser-like” focus on slashing costs. As such, the compensation was limited to twelve months’ worth of damages post the outsourcing decision.
Psychological Toll on Workers
The human impact of Qantas’ actions was laid bare during the compensation hearings. The court heard harrowing accounts of some workers suffering immense psychological distress after being let go, with many having to resort to medication to cope with the fallout.
They should not have to suffer a day longer after the last four years of anguish.
Michael Kaine, TWU National Secretary
A Tarnished Reputation
For Qantas, the court ruling comes as yet another blow to its once sterling public image. Australia’s flagship carrier has found itself embroiled in a series of scandals over the past year, from the $100 million fine for deceptive ticketing practices to airport chaos and publicity nightmares. The controversies ultimately led to CEO Alan Joyce’s hasty retreat from the top job.
The airline now finds itself at a critical juncture as it attempts to rebuild trust and morale. TWU Secretary Kaine put it bluntly, insisting that Qantas needs to “do everything in its power to ensure appropriate compensation to workers” if it genuinely wants to prove it has “turned over a new leaf.”
The Price of Profits
Ironically, Qantas’ ruthless cost-cutting measures have actually paid off, at least on paper. The airline has bounced back from the pandemic woes to post record profits this year. However, the financial wins have come at a steep cost to its workforce and reputation.
As Qantas heads into mediation with the union, the full scope of compensation for the illegally sacked workers remains to be seen. The three test cases may have set the precedent, but the final bill for the airline’s pandemic missteps could climb far higher once all is settled.
For the affected workers, though, this court victory is about more than just the money. It’s a matter of principle, dignity, and justice. They may have lost their jobs, but they refuse to be treated as collateral damage in corporate Australia’s relentless pursuit of profits.
The case serves as a sobering reminder for all businesses: cutting corners and skirting the law in tough times may boost the bottom line in the short term, but the long-term costs to reputation and worker morale are immeasurable. As Qantas has learned the hard way, sometimes the price of profits is simply too high.
