Qantas illegally dismissed 1,700 workers during Covid crisis and CEO resigns amid controversies

Qantas Faces Legal Consequences

Australia’s Qantas airline has been found guilty in an appeal case for unlawfully dismissing 1,700 ground staff employees during the Covid-19 pandemic, according to the Australian High Court. The Federal Court of Australia had previously ruled the outsourcing of these ground jobs by Qantas during the pandemic illegal, stating that the company failed to prove that these mass layoffs were partly aimed at preventing future union actions. The High Court unanimously upheld this decision, rejecting Qantas’ appeal.

The Transport Workers’ Union (TWU), which had taken legal action against Qantas over the dismissals, welcomed the decision and called for the replacement of the airline’s board.

Former CEO Alan Joyce resigned last week after 15 years in his position, cutting short his tenure during a time when Qantas’ reputation is tarnished despite exceptional shareholder profits.

Qantas has stated that it “acknowledges and accepts” the High Court’s decision and expressed deep regret for the impact of the outsourcing decision on those affected.

The airline highlighted that the decision to outsource these jobs was made in August 2020 when borders were closed, lockdowns were in place, and there was no Covid vaccine available. Qantas emphasised that the likelihood of a multi-year crisis led to restructuring efforts aimed at improving its survival and recovery capacity.

Qantas has also faced criticism for surging ticket prices and allegations of selling tickets for cancelled flights. Additionally, there are suspicions that the company lobbied the government to prevent Qatar Airways from offering more flights to Australia.

CEO Resigns Amid Controversies

Alan Joyce, the CEO of Qantas, has announced his early retirement as the Australian airline faces accusations of high fares for subpar service.

Joyce, who has led the airline for 15 years, was originally scheduled to retire in November. However, Qantas announced that his retirement would be advanced by two months. Vanessa Hudson, the current Chief Financial Officer, will succeed him.

Qantas has been under scrutiny since the pandemic, with allegations of overbooking and high ticket prices despite substantial financial support from the Australian government.

The airline is also facing an investigation for selling 8,000 tickets for flights that were already cancelled.

Under Alan Joyce’s leadership, Qantas underwent significant restructuring to improve its financial health, which resulted in layoffs and cost reductions. This move generated criticism and anger among employees who lost their jobs.

The Transport Workers’ Union welcomed Joyce’s early retirement, with its national secretary, Michael Kaine, calling it the “first good decision” made by the company in a long time.

Qantas reported a yearly profit of AUD 1.1 billion in August, a significant financial turnaround after two years of border closures due to Covid-19.

The Australian government, led by the centre-left, has been drawn into the crisis. Critics argue that Prime Minister Anthony Albanese’s rejection of Qatar Airways’ proposal to increase its flights to Australia was aimed at protecting Qantas’ profits and was detrimental to passengers. Albanese denied any protectionist behaviour.