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A judge on Monday fined Qantas Airways 90 million Australian dollars ($59 million) for illegally firing more than 1,800 ground staff at the start of the Covid-19 pandemic. The penalty is in addition to the AU$120 million ($78 million) in compensation that Australias biggest airline had already agreed to pay its former employees. Australian Federal Court Justice Michael Lee said the outsourcing of 1,820 baggage handler and cleaner jobs at Australian airports in late 2020 was the largest and most significant contravention of relevant Australian labor laws in their 120-year history. Qantas agreed in December last year to pay AU$120 million ($78 million) in compensation to former staff after seven High Court judges unanimously rejected the Sydney-based airlines appeal against the judgment that outsourcing their jobs was illegal. The Transport Workers Union, which took the airline to court, had argued the airline should receive the largest fine available AU$121,212,000 ($78,969,735). Lee ruled that the minimum fine to create a deterrence should be AU$90 million ($59 million), noting that Qantas executives had expected to save AU$125 million ($81 million) a year through outsourcing the jobs. Lee questioned the sincerity of Qantass apology for its illegal conduct, noting that the airline later unsuccessfully argued that it owed no compensation to its former staff. If any further evidence was needed of the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever to those in respect of whom Qantas was publicly professing regret for their misfortune, Lee said. “I do think that the people in charge of Qantas now have some genuine regret, but this more likely reflects the damage that this case has done to the company rather than remorse for the damage done to the affected workers, Lee added. Qantas chief executive Vanessa Hudson, who was the airline’s chief financial officer during the layoffs, said in a statement after Monday’s decision: We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result. The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families,” she said. Over the past 18 months weve worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost, she added. Lee ruled that AU$50 million ($33 million) of the fine go to the union, because no Australian government agency had shown interest in investigating or prosecuting Qantas. But for the union , Qantas contravening conduct would never have been exposed and it would never have been held to account for its unlawful conduct, Lee said. Hence the union has brought to the attention of the court a substantial and significant transgression of a public obligation by a powerful and substantial employer, Lee added. A hearing will be held at a later date to decide where the remaining AU$40 million ($26 million) of the fine will go. Michael Kaine, national secretary of the union that represents 60,000 members, said he felt vindicated by Mondays ruling, which ends a five-year legal battle that Qantas had been widely expected to win. It is a significant the most significant industrial outcome in Australias history and it sends a really clear message to Qantas and to every employer in Australia: Treat your work force illegally and you will be held accountable, Kaine told reporters. Against all the odds, we took on a behemoth that had shown itself to be ruthless and we won, Kaine added. Qantas has admitted illegally dealing with passengers as well as employees in its responses to pandemic economic challenges. Last year, Qantas agreed to pay AU$120 million ($78 million) in compensation and a fine for selling tickets on thousands of cancelled flights. The Australian Competition and Consumer Commission, a consumer watchdog, sued the airline in the Federal Court alleging that Qantas engaged in false, misleading or deceptive conduct by advertising tickets for more than 8,000 flights from May 2021 through to July 2022 that had already been canceled. Rod McGuirk, Associated Press
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E-Commerce
Air Canada suspended plans to restart operations Sunday after the union representing 10,000 flight attendants said it will defy a return-to-work order. The strike was already affecting about 130,000 travelers per day during the peak summer travel season. The Canada Industrial Relations Board ordered airline staff back to work by 2 p.m. Sunday after the government intervened and Air Canada said it planned to resume flights Sunday evening. Canadas largest airline now says it will resume flights Monday evening. Air Canada said in a statement that the union illegally directed its flight attendant members to defy a direction from the Canadian Industrial Relations Board. Our members are not going back to work, Canadian Union of Public Employees national president Mark Hancock said outside Toronto’s Pearson International Airport. We are saying no. Hancock ripped up a copy of the back-to-work order outside the airports departures terminal where union members were picketing Sunday morning. He said they won’t return Tuesday either. Flight attendants chanted Dont blame me, blame AC outside Pearson. Like many Canadians, the Minister is monitoring this situation closely. The Canada Industrial Relations Board is an independent tribunal,” Jennifer Kozelj, a spokeswoman for Federal Jobs Minister Patty Hajdu said in a emailed statement. Hancock said the whole process has been unfair and said the union will challenge what it called an unconstitutional order. Less than 12 hours after workers walked off the job,)Hajdu ordered the 10,000 flight attendants back to work, saying now is not the time to take risks with the economy and noting the unprecedented tariffs the U.S. has imposed on Canada. Hajdu referred the work stoppage to the Canada Industrial Relations Board. The airline said the CIRB has extended the term of the existing collective agreement until a new one is determined by the arbitrator. The shutdown of Canadas largest airline early Saturday was impacting about 130,000 people a day. Air Canada operates around 700 flights per day. Tourist Mel Durston from southern England was trying to make the most of sightseeing in Canada. But she said she doesnt have a way to continue her journey. We wanted to go see the Rockies, but we might not get there because of this, Durston said. We might have to head straight back.” James Hart and Zahara Virani were visiting Toronto from Calgary, Alberta for what they thought would be a fun weekend. But they ended up paying $2,600 Canadian ($1,880) to fly with another airline on a later day after their Air Canada flight got canceled. Its a little frustrating and stressful, but at the same time, I dont blame the flight attendants at all, Virani said. What theyre asking for is not unreasonable whatsoever.” Flight attendants walked off the job around 1 a.m. EDT on Saturday. Around the same time, Air Canada said it would begin locking flight attendants out of airports. The bitter contract fight escalated Friday as the union turned down Air Canadas prior request to enter into government-directed arbitration, which allows a third-party mediator to decide the terms of a new contract. Last year, the government forced the countrys two major railroads into arbitration with their labor union during a work stoppage. The union for the rail workers is suing, arguing the government is removing a unions leverage in negotiations. Hajdu maintained that her Liberal government is not anti-union, saying it is clear the two sides are at an impasse. Passengers whose flights are impacted will be eligible to request a full refund on the airlines website or mobile app, according to Air Canada. The airline said it would also offer alternative travel options through other Canadian and foreign airlines when possible. Still, it warned that it could not guarantee immediate rebooking because flights on other airlines are already full due to the summer travel peak. Air Canada and CUPE have been in contract talks for about eight months, but they have yet to reach a tentative deal. Both sides have said they remain far apart on the issue of pay and the unpaid work flight attendants do when planes arent in the air. The airlines latest offer included a 38% increase in total compensation, including benefits and pensions, over four years, that it said would have made our flight attendants the best compensated in Canada. But the union pushed back, saying the proposed 8% raise in the first year didnt go far enough because of inflation. Rob Gillies, Associated Press
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E-Commerce
Soho House is a public company nomo. Soho House, a hotel and private club chain, is being acquired by MCR Hotelsgoing private, and it is also adding some new names to its leadership team. The company first went public in 2021, and along with Mondays announcement, says that Neil Thomson will become the companys new CFO, MCRs chairman and CEO Tyler Morse will join its Board of Directions, as will Ashton Kutcher, an actor whos gone on to become a rather prominent investor in recent years. The deal has reportedly been brewing since December, and shareholders will receive $9 per share, which is a premium of 18% over Fridays closing price. MCR Hotels operates 150 hotels in 37 states, including the TWA Hotel, Gramercy Park Hotel, Pasadena Hotel & Pool, and High Line Hotels in New York City, where Soho House New York is located. Soho Houses global network comprises 46 Houses, which will be added to the mix. Since our IPO in 2021, weve focused on building a stronger, more resilient business. Against a backdrop of challenging economic conditions and global uncertainty, from 2022-2024 we delivered consistent, disciplined growth with revenue increasing at an average annual rate of double digit growth, Andrew Carnie, Soho Houses CEO said in a statement. Returning to private ownership enables us to build on this momentum, with the support of world class hospitality and investment partners. Further, Morse said that MCRs investment in Soho House represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality. Our shared goal is to safeguard the member experience, drive sustainable international growth for House members, and protect and expand the cultural and creative foundation that has made Soho House a global industry leader. In recent months, Soho House has put up solid numbers. Its latest earnings report, which came out earlier this month, showed total revenue growing nearly 9% year-over-year to roughly $330 million. However, since the company went public, its shares are down almost 30%.
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E-Commerce
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