Qantas pilots fined more than $100 million: ‘Not nearly high enough’

Qantas executives and the company’s affidavit faced scorn from Federal Court Judge Michael Lee as he explained why the national carrier could pay about $200 million in compensation to 1,700 wrongfully sacked baggage handlers, as well as fines and legal costs.

In 2021, the Federal Court found Qantas had unlawfully fired workers in 2020. The decision was upheld by the High Court on appeal, with the airline considered to have taken advantage of the pandemic and the restrictions it placed on industrial action.

“The general consensus among pilots is that it’s bloody time,” said one Qantas pilot. Screams. “Qantas got away with murder and must be brought to justice. There is also a general consensus that the fines are not nearly high enough.”

Each worker will likely receive 12 months’ salary and non-economic compensation of between $30,000 and $100,000, with Qantas and the Transport Workers Union (TWU) participating in mediation to determine the exact amounts. The legal bill for both parties, which will also be paid by Qantas, will cost many millions of dollars, and the union is also seeking fines against the airline.

“Qantas must now pay more than $100 million in fines,” the TWU said, noting it was the largest wrongful dismissal in Australian history. “When all is said and done, it should cost over $200 million.”

“The TWU has taken on Australia’s biggest corporate bully at a time when workers have been told they are merely victims of the pandemic,” TWU national secretary Michael Caine said. “In reality, they have been victims of systematic attempts by Qantas to reduce the wages and working conditions of their workforce.”

Judge Lee’s decision also details evidence that former Qantas CEO Alan Joyce had intimate and contemporaneous knowledge of the exit strategy and options, despite Qantas’ previous statements.

“Alan on Friday wanted to understand the full range of options and then identify all the options in between so we could talk about trade-offs,” Qantas chief executive Paul Jones quoted Judge Lee as saying, according to the notes submitted. at the hearings.

The recordings were taken from an internal meeting on June 1, 2020, by Brad Popple, lawyer for Herbert Smith Freehills, and showed his firm persistently pushing its case that the plan to lay off workers was legal, despite the doubts of Qantas’ top IR. consultant Ian Oldmeadow, who was “very concerned about the overall risks”.

The latest blow for Qantas CEO Vanessa Hudson was a $120 million fine from the Australian Competition and Consumer Commission, which found the airline was liable for deliberately selling tickets on so-called “ghost flights” during the pandemic.

As another Qantas pilot noted: “With all the fines and compensation they paid, they could have bought a (Boeing) 787 with cash.”

The largest series of wrongful dismissals in Australian history helped company executives achieve targets under a generous executive remuneration scheme. Although the Qantas board belatedly cut some bonuses for executives (including Alan Joyce), key executives directly responsible for strategy were still receiving millions of dollars.

The question for the Qantas board, which previously defended the sacking, is whether any further action will be taken. So far, the airline has taken steps, albeit with unusual speed and remorse, only to demonstrate CEO Vanessa Hudson’s stated desire to improve the company’s relations with staff and its tarnished public image.

“We sincerely apologize to our former employees who were impacted by this decision, and we know the responsibility lies with Qantas to learn lessons,” she said in a statement seeking the TWU’s “assistance” in reaching a final settlement. “We recognize the emotional and financial impact this has had on these individuals and their families. We hope this helps those affected.”

One Qantas pilot said Screams“At least publicly she’s trying to make amends and stop all these lawsuits so she and the company can move forward. But this is a case of too little, too late.”

Screams She has heard from multiple sources that while Hudson is seeking to soften the company’s approach to labor relations, she is wary of how investors perceive potential pay increases. The case will face a major test in resolving payment issues, as well as in sorting out an enterprise agreement for short-haul pilots that was recently rejected.

As one pilot said Screams: “Like many within the Qantas group, pilots are angry and unhappy with management… and are unwilling to accept a B deal.”