Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers.
Experts warn the airline, which markets itself as the “Spirit of Australia”, risks losing its place in the national psyche as a result of its recent indiscretions.
Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations.
It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses.
Trading on being the “Spirit of Australia” could mean the flag carrier might be held to “exceptional, indeed unique” standards, Justice Michael Lee noted as he delivered the fine.
RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline’s ethics, not only its performance.
“Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect,” she told AAP.
“If Qantas is the ‘Spirit of Australia’, then the public expects it to act with a conscience, not just a balance sheet.”
Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind.
“It’s an Australian company. You go overseas and see that red kangaroo, you know ‘that’s my country and I’m going home, I feel safe’ … that’s been lost,” he told AAP.
The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded.
Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct.
He cited the “sheer scale of the contraventions, being the largest of their type” as a reason to impose a penalty that would deter other businesses from similar conduct.
Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing.
Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn’t necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns.
“That said, sustained reputational damage can have long-term effects,” she said.
“If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche.”
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