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Federal Court orders Qantas to pay $90 million for illegally sacking workers during COVID-19

About 1800 staff were let go during the COVID-19 pandemic.
Qantas faces a hefty fine for illegally sacking workers including baggage handlers and ground staff. Credit: AAP

Federal Court orders Qantas to pay $90 million for illegally sacking workers during COVID-19

About 1800 staff were let go during the COVID-19 pandemic.

The Federal Court has ordered Australia’s largest airline to pay $90 million for illegally sacking more than 1800 workers during the COVID-19 pandemic.

The fine falls short of the maximum $121 million the Transport Workers Union sought but more than the “mid-range” penalty of between $40 million and $80 million that Qantas had requested.

Justice Michael Lee in handing down his ruling on Monday said $50 million of the fine should be paid to the union.

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Qantas outsourced its baggage handlers, cleaners and ground staff in 2020, in a move the court ruled was designed to curb union bargaining power in wage negotiations.

It appealed the ruling to the High Court but the decision was not overturned, paving the way for Monday’s penalty.

Qantas will cop the fine on top of a $120 million compensation payment it has made to the ground staff for their economic loss, pain and suffering since their jobs were outsourced during the pandemic.

It has argued the actions were a mistake, not a deliberate breach of the law.

Qantas also sold tickets to cancelled flights for several years, triggering more legal turmoil and a $100 million fine after it was sued by the Australian Competition and Consumer Commission.

About 1800 staff were illegally sacked during the COVID-19 pandemic. Credit: Unknown/Supplied/Supplied

The carrier, which was under the control of Alan Joyce at the time of the illegal sacking, lost billions of dollars during the pandemic, which decimated the aviation sector.

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But the former CEO did not address the scandal when he spoke at an aviation conference on Thursday, instead spruiking his ability to keep the airline afloat in unprecedented times.

“But here’s the real insight: resilience isn’t a reaction … it’s a decision made years in advance, often when it’s uncomfortable, even unpopular,” he said.

“Qantas was the only major Australian airline not to go bankrupt during or after the pandemic … that wasn’t luck. That was resilience.”

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