Qantas to outsource ground handling across Australia

[Quickstatus]

Remember the Federal Court decision was 4-3.

However the High Court unanimously (7-0) agreed with the Federal Court decision

Corporate Jailings or personal financial penalties are not overly heard of here

Though it was not a criminal contravention of the Fair Work Act

 

[AIRwin]

Fine day forecasted:

D-Day comes for Qantas as it braces for huge fine for illegal sackings

After years of litigation, Federal Court judge Michael Lee will decide on Monday how much – and whom – the airline must pay for unlawfully firing staff.

www.afr.com

 

[RooFlyer]

Fine day forecasted:

D-Day comes for Qantas as it braces for huge fine for illegal sackings

After years of litigation, Federal Court judge Michael Lee will decide on Monday how much – and whom – the airline must pay for unlawfully firing staff.

www.afr.com

Justice Michael Lee. At the very least it will be entertaining.

 

[05flyer]

Qantas fined 90 million. 50 million of that balance awarded to the TWU.
Huge penalty expected for Qantas

 

[Dmac59]

Qantas fined 90 million. 50 million of that balance awarded to the TWU.
Huge penalty expected for Qantas

Q customers can expect higher ticket prices

 

[Le_Champion]

The Justice was fairly brutal in his view of Qantas. Absolute disgrace to the country their behaviour in accepting covid payments, blocking Virgin from getting them, sacking workers and then doing share buybacks

 

[clifford]

Q customers can expect higher ticket prices

Well, of course, what else would they do? So imposing such a large fine is actually counterproductive as it will hurt the average Australian. No disincentive at all.

 

[anat0l]

Well, of course, what else would they do? So imposing such a large fine is actually counterproductive as it will hurt the average Australian. No disincentive at all.

What would be a greater disincentive?

Force shut down the company for a period of time (a sort of corporate or business prison)?

Imprison the entire board?

Qantas fined 90 million. 50 million of that balance awarded to the TWU.
Huge penalty expected for Qantas

What does the TWU do with $50M?

I assume the other $40M goes to employees, or is that punitive (i.e. goes to the government)?

 

[jase05]

What does the TWU do with $50M?

Wouldn’t that go to the employees?
The other $40m gets decided at a later date

 

[DejaBrew]

What does the TWU do with $50M?

I thought the point of this was to offset their costs in prosecuting the case given they largely flew solo?

Edit via the ABC -:

Justice Lee has ruled on how the penalty should be distributed, as between the Transport Workers Union (TWU) and the federal government.

He says government agencies, such as the Fair Work Ombudsman, showed no inclination to pick up the case.

The Commonwealth did nothing to institute proceedings, according to Justice Lee.

He says the TWU took a great financial risk by taking up the case against a large corporation with significant legal resources.

He also says the union and its lawyers exercised their skill to argue the case to a successful conclusion for the sacked workers.

"Greater rewards might be appropriate in the circumstances of greater risk", Justice Lee says, adding that it will incentivise unions and other bodies to take on such cases in the future.

However, Justice Lee says that he does not have enough evidence to prove that workers would be "fully compensated" for the loss they suffered by being made redundant as part of the Qantas outsourcing.

He has ruled that $50 million will go to the TWU, with the balance of $40 million to be finalised.

 

[serfty]

Imprison the entire board?

That'd set the cat amongst the pigeons, but sadly could never happen with current regulations.

 

[moa999]

Share price up today. Market was seemingly expecting worse.

Anyhow it closes the Joyce chapter. Maybe the press can stop mentioning him with every article about Qantas

 

[justinbrett]

Am I the only one thinking this is actually not a large fine and really QF would have probably paid it if given the choice between retaining ground handling inhouse or outsourcing?

 

[jase05]

Am I the only one thinking this is actually not a large fine and really QF would have probably paid it if given the choice between retaining ground handling inhouse or outsourcing?

Absolutely agree
They already paid $120m and now a fine of $90m

At $210m total cost if they just put a levy of $4 on every ticket they have already broken even

 

[DejaBrew]

Am I the only one thinking this is actually not a large fine and really QF would have probably paid it if given the choice between retaining ground handling inhouse or outsourcing?

Absolutely agree
They already paid $120m and now a fine of $90m

At $210m total cost if they just put a levy of $4 on every ticket they have already broken even

Based on how the share price is tracking today, I'd suggest the market feels the same way.

 

[muppet]

Imprison the entire board?

I imagine a short stint in the slammer for the board would see breaches of the fair work act plummet.

 

[cove]

No consequences for the former CEO nor the former chairman of Qantas.

 

[TomVexille]

Am I the only one thinking this is actually not a large fine and really QF would have probably paid it if given the choice between retaining ground handling inhouse or outsourcing?

Yup, given they claimed $100m savings every year, it's a decent ROI

 

[moa999]

I imagine a short stint in the slammer for the board would see breaches of the fair work act plummet.

Go back to the Fed court decision, it was an illegal, but not criminal decision. There is a two part test.

 

[05flyer]

The Betoota Advocate’s take on today’s events is quite funny