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Qantas will pay a record fine of $58m for sackings due to pandemics, criticised by a judge
A court in Australia ordered Australia's biggest airline, Qantas Airways to pay A$90m ($58.64m) on Monday for illegally terminating 1,800 staff members during the COVID-19 epidemic and criticised its lack of contrition. Michael Lee, Federal Court judge, also criticized the litigation strategy of the airline in imposing this penalty. It was the largest ever imposed by a court in Australia's history. Qantas has made changes to their board and management, but Lee says that the subsequent expressions seem to be more in line with "the harm" caused by the case to the company rather than regret for the harm done to employees. He added: "I accept Qantas's apology, but I remain unconvinced this level of regret does not represent, at least significantly, the wrong kind." Lee stated that the penalty amount, which was about 75% of what he could set as the maximum, was crucial to make sure it "couldn't be perceived like the cost of business". The Transport Workers' Union, which brought the lawsuit against Qantas, will receive A$50 Million of the fine. Michael Kaine, national secretary of TWU said after the decision: "Against all odds, we took a behemoth... that had proven itself to be brutal, and we won." The decision was made Monday following a December agreement between the airline and its sacked employees on a compensation fund worth A$120m. Qantas senior management decided that during the pandemic of 2020, they would lay off 1,820 staff members and outsource their work to independent contractors. Qantas claimed it was a business decision, but in 2021 the Federal Court ruled that the move was "adverse" and prevented staff from exercising workplace rights or unionising in violation of Australia's Fair Work Act. Lee, in assessing Qantas’ actions, said that he wasn’t convinced it was truly repentant and criticized its culture, approach to public relations and litigation strategy. He said, for example, that Qantas announced it would appeal the court decision of 2021 "without any delay" to the High Court to review the 431 paragraph judgment. He said that when Qantas' appeal was rejected, it issued a "spin" on the result, while ignoring findings about its illegal conduct. He criticised Qantas for its conduct in litigation, including the decision to exclude Vanessa Hudson, current CEO and former Chief Financial Officer, from the witness stand. Lee stated that it was one thing to have a Qantas CEO issue a press release apologizing, but quite another to test written statements of contrition and recognition of wrongs in court. Maurice Blackburn Lawyers who represented TWU said that the penalty was the highest ever imposed by an Australian court for violations to Australia's Labour Laws. In a press release, the principal of the company, Josh Bornstein said that the record-breaking fine reflected the massive scale of Qantas’ wrongdoing. Shae McCrystal is a professor of labour law at the University of Sydney. She said that the fine reflected an unprecedented finding of adverse actions against so many employees. She said that adverse action cases were risky. It sends a clear message to employers, that if they violate the law then the unions could receive the penalties to help enforce the act. Qantas has said that it will pay the fine. Vanessa Hudson, Chief Executive of the company, said that "we sincerely apologize to all 1,820 employees who work in ground handling and their families." Qantas shares fell 0.4% to A$11.58 at the opening of trading. (1 Australian dollar = 1.5349 dollars) (Reporting and editing by Michael Perry, Clarence Fernandez, and Christine Chen from Sydney)
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Air Canada grounded after union refuses to return to work
Air Canada's fleet remained grounded Monday morning, after hundreds of planes were grounded due to a strike by flight attendants who refused to go back to work despite a government order. They also demanded that the airline return to the negotiating table. The airline, which usually carries around 130,000 passengers daily, and is a member of the Star Alliance, was planning to ramp up its operations by Sunday night, after the labor relations board had ordered the union back to work and to begin binding arbitration. The union refused, resulting in a standoff almost unheard of with the Canadian government who had requested the order to return to work. The Canadian Union of Public Employees (CUPE), which represents 10,000 Air Canada Cabin Crew, had called for a negotiated settlement, claiming that binding arbitration would relieve the airline of any pressure. They are on strike for better pay and for the right to be paid for their work at ground level, like boarding passengers. They are currently only paid when the planes are in motion, which has sparked some vocal support on social media from Canadians. CUPE invited Air Canada to return to the table for "a fair deal" and called the order to end the strike unconstitutional. The airline announced that it would postpone plans to resume operations until Monday night and accused the union of illegally defying labor board. To end the strike, the government can ask the courts to enforce an order to return to the workplace and to expedite the hearing. The minority government can also pass legislation, but it would require the approval of both houses of Parliament and support from political rivals. Both are on break until 15 September. Dionne Pohler is a professor at Cornell University’s Industrial and Labor Relations School who specializes in dispute resolution. Pohler suggested that another option would be to encourage bargaining. Requests for comments from the government were not answered. The Liberal government of Prime Minister Mark Carney moved on Saturday to end the strike, by asking the Canada Industrial Relations Board for binding arbitration. Air Canada requested the order and unionized flight crews were against it. Last year, the former Trudeau government intervened to stop rail and dock strike that threatened to cripple Canada's economy. However, it is very rare for a union defy a CIRB Order. The CUPE stated that its rejection was unprecedented, as it was made in accordance with the rules known as Section 107 which was invoked by the government. Over the weekend, travelers at Toronto Pearson International Airport were frustrated and confused about when they could fly. Italian Francesca Tondini said that she was a union supporter, even though she did not know when she could return to her home. She smiled and pointed at the striking attendants. The dispute between Air Canada and the cabin crews revolves around how airlines compensate flight attendants. Air Canada and most other airlines have paid flight attendants only when the plane is in motion. Flight attendants from Canada and the United States are seeking compensation for their hours worked in recent contract negotiations. This includes tasks like boarding passengers. American Airlines and Alaska Airlines have signed new labor agreements that legally mandate the carriers start the clock when paying flight attendants as soon as passengers board. American Airlines' flight attendants will now be compensated for the time between flights. United Airlines cabin crews who rejected a tentative contract last month also want the same provision.
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Qantas fined 58 million dollars for illegally dismissing 1,800 employees during pandemic
Qantas Airways Australia's largest carrier was fined A$90m ($58.64m) on Monday for illegally firing 1,800 ground staff during the COVID-19 epidemic and replacing them with contractors. Michael Lee, a Federal Court of Australia judge, said that he wanted to make sure the penalty "couldn't be viewed as anything like a cost of doing business". In a summary judgement, Lee stated that "my current focus is to achieve real deterrence" (including deterrence of large public companies who might be tempted by the reward to continue with the contravening behavior because it may outweigh any downside risk from effective remedial actions). He said that A$50million of the penalty will be paid to Transport Workers' Union who brought the case for the 1,820 employees fired by Qantas due to the pandemic. This comes nine months after Qantas, the Union and the workers were sacked reached an agreement on a settlement of A$120 Million. Qantas' shares fell 0.13% at the opening of trading. (1 Australian dollar = 1.5349 dollars) (Reporting and editing by Michael Perry in Sydney, Christine Chen reporting from Sydney)
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Air Canada resumes flights following directive ending strike
Air Canada will resume flights Sunday, after the Canadian Industrial Relations Board acted upon a directive by the country's Minister of Jobs Patty Hajdu. The board acted in response to a strike by cabin crew that had caused around 700 flights to be suspended daily. The CIRB ordered Air Canada to resume its operations, and all Air Canada and Air Canada Rouge Flight Attendants to return to work by 2 p.m. The airline issued a press release stating that the time was 1800 GMT (1800 ET). The government issued the directive after moving on Saturday to end the strike, and to require binding arbitration in order to break an impasse contract. This was a move that the largest airline of the country had requested but which unionized flight attendants strongly opposed. After months of contract negotiations, Air Canada cabin staff walked out of the workplace on Saturday. This was the first time in 1985 that thousands of crew members had done so. The airline cancelled flights in anticipation of the strike, forcing over 100,000 passengers to find alternate travel arrangements or stay at home. Air Canada announced that flights would resume on Sunday night, but would continue to be cancelled over the next seven to ten days until the schedule is stabilized and returned back to normal.
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Canadian government ends Air Canada strike and seeks binding arbitration
The Canadian government moved on Saturday to end the strike of Air Canada cabin staff by asking the labor board to order binding arbitral proceedings. This was a move that Canada's largest airline had requested and the striking flight attendants were opposed to. Air Canada had to cancel 700 flights per day due to a dispute over wages. This forced more than 100,000 passengers to either find alternate flights or stay in their homes. At a press conference, Jobs Minister Patty Hajdu said that she had requested the Canada Industrial Relations Board impose binding arbitrage on both sides in order to end the strike immediately. She said that Air Canada indicated it would be four to five working days before it resumed full operations. This is assuming that the board grants the government's requests, as it does in most cases. The carrier offered flight attendants a 38% total increase in compensation over four years with a 25% rise in the first year. However, the Canadian Union of Public Employees deemed this offer insufficient. Attendants receive payment only when the plane is in motion. The union wants compensation for the time spent waiting between flights or helping passengers board. Wesley Lesosky said at a Toronto press conference earlier that day that no bargaining sessions were scheduled between the two parties, who have been in negotiations on and off for months. Ahead of the busiest airport in Canada, Toronto Pearson International Airport, hundreds of cabin staff waved banners, flags and pickets. Union officials urged members to gather outside the major airports in Canada, including Toronto, Montreal Calgary and Vancouver. Air Canada, based in Montreal, said that the flights suspended included those operated by Air Canada Rouge, its budget-oriented subsidiary. In a press release, Air Canada said that the stoppage would impact about 130,000 passengers a day. Air Canada Jazz, PAL Airlines and regional affiliates will continue to operate their flights as normal. According to the union, Air Canada has offered to compensate flight attendants at 50% of their current hourly rate for work that they are not paid. Sources close to the talks said the union was seeking parity with the Canadian leisure airline Air Transat. The flight attendants of Air Transat approved a contract in 2013 that included a total compounded increase of 30% over five year, making them the highest-paid in the Canadian industry.
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Air Canada cabin crew on strike, forcing hundreds of flights to be grounded
Air Canada's flight attendants, who are unionized, walked out of their jobs early Saturday morning as contract negotiations with the country's biggest carrier failed. This could cause travel disruptions for over 100,000 passengers. In a post on social media, the union that represents more than 10,000 Air Canada Flight Attendants confirmed the strike in an early morning posting. Currently, flight attendants are only paid for the time they spend on the plane. The union wanted to compensate them for the time spent waiting at the airport and helping passengers board. Air Canada, based in Montreal, said that it expected to cancel 500 flights by Friday's end during the busy summer travel period. Around 100,000 people were expected to be affected by the cancellations on Friday. As the airline gradually winds down its operations, flight attendants will likely picket major Canadian airports on Saturday, where passengers had already tried to secure new bookings in the previous week. Freddy Ramos (24), a passenger at Canada's biggest airport, Toronto, said that Air Canada had rebooked him to another destination after his flight earlier in the day was cancelled because of a labor dispute. He said that "probably 10 minutes before boarding our gate was changed, then cancelled, then delayed, and then again cancelled." Air Canada Rouge, its low-cost subsidiary, carries about 130,000 passengers per day. Air Canada has the most flights into the United States of any foreign carrier. Canadian businesses, reeling from an ongoing trade dispute with the United States, have urged the government to enforce binding arbitration for both sides. This would put an end to the strike. Air Canada asked the minority Liberal Government of Prime Minister Mark Carney, to order both parties into binding arbitration, despite the Canadian Union of Public Employees (which represents the attendants) saying it was against the move. According to the Canada Labour Code, the Jobs Minister Patty Hajdu has the right to request that the Industrial Relations Board of Canada impose a binding arbitration to protect the economy. Hajdu has repeatedly called on the two sides to come back to the table. Air Canada has offered to compensate flight attendants at half their current hourly rate for work they are currently not paid. The carrier offered flight attendants a 38% total increase in compensation over four years with a 25% rise in the first year. However, the union deemed this offer insufficient. Analysts at financial services company TD Cowen urged on Friday that the carrier "extend an olive branch in order to end this impasse" and that investors were concerned that any labor cost savings would be outweighed by the loss of earnings during the airline's crucial quarter. The note stated that "We believe it is best for AC to reach labor peace." Not compromising on negotiations could be a Pyrrhic win.
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Toronto stocks are down on Friday but close the week in green
Canada's main index of stocks closed flat on the day as investors closely watched a meeting between U.S. president Donald Trump and Russian President Vladimir Putin to discuss a possible path for ending the conflict in Ukraine. Trump and Putin met in Alaska Friday afternoon. The markets are hoping that the meeting will pave the path for a solution to the Ukraine conflict, and help determine the outlook of crude prices. The Toronto Stock Exchange S&P/TSX Composite index fell 10.50 points or 0.04% to 27,905.49. The index rose 0.5% during the week. South of the Border The blue-chip Dow Jones index ended higher, after reaching an intraday high. However, other Wall Street indices fell as mixed data cloudsed the Federal Reserve’s next move in monetary policy. Bausch Health Companies, a sub-index of the TSX, rose 11%, boosting healthcare by 4%. Materials stocks rose by 0.8% while energy stocks declined by 0.2%. Michael Constantino CEO of Webull Canada said that short-term investors hope the meeting will bring a ceasefire, or at the very least have continuous talks. We're approaching the end of summer. Air Canada's flight attendants, who are unionized, threatened to strike shortly before 1:00 am. On Saturday, the largest airline in the country warned that it would cancel 500 flight by the end the day. The company's shares rose by about 0.6%. The data released on Friday shows that Canadian factory sales rose by 0.3% from May to June, with petroleum, coal, and food products leading the way. Wholesale trade also increased by 0.7%, thanks to gains in tobacco, food, and beverage. Retail sales in South America rose 0.5% as expected in July. However, a surge in import prices has raised fears that U.S. Tariffs will fuel inflation. (Reporting and editing by Nikhil Sharma, Nivedita Balu and Vijay Kishore; Margueritachoy and Vijay Kishore)
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Sources: US considered using Russian icebreakers to develop gas ahead of summit
Three sources familiar with the matter said that the United States had discussed using Russian nuclear-powered vessels to support gas and LNG development projects in Alaska, as a possible deal to be aimed for when Donald Trump meets Vladimir Putin this Friday. Trump arrived in Alaska Friday to attend what he described as a "high-stakes" meeting with Putin, the Russian president. The two men were expected to discuss a ceasefire agreement for Ukraine and an end to the deadliest conflict in Europe since World War Two. The U.S. president and the Russian president, who are meeting in the largest city of Alaska, at an air base from the Cold War era, both hope to achieve something during their first face-toface talks since Trump's return to the White House. One source said that the White House officials have discussed the icebreaker idea as a potential deal to try and strike with Russia during the Alaska Summit. Business deals have been discussed in the ongoing discussions between the U.S.A. and Russia about Ukraine. This approach is expected to be continued by the White House at the Friday summit, according to a source who spoke under anonymity because of the sensitive nature of the discussions. The White House didn't immediately respond to an inquiry for comment. Officials from the Kremlin were not available to comment. The only nuclear-powered fleet in the world is operated by Russia. Its icebreakers play an important role in maintaining the Northern Sea Route as a strategic route for energy and trade flows around the globe. Trump's administration wants to move gas from Alaska to Asia. Trump pitched Alaska LNG to Asian buyers, as a $44 billion project that would ship liquefied gas from Alaska along an 800-mile pipeline, in order to reduce their dependency on Russian LNG. Qilak LNG is another project that is also aimed at Asian markets. It aims to produce 4 million tons of LNG per year. Mead Treadwell is a Qilak LNG co-founder. He said that it was not unusual for an American LNG project to depend on icebreakers from any country the U.S. Government allowed. Treadwell stated that "but we haven't asked for this". A source in the industry said that Alaska LNG has "no identified need for Russian icebreakers." It was not possible to determine immediately which specific project, if any would be benefited if an agreement was reached in Alaska negotiations. The nuclear icebreakers would also help transport construction materials to Alaska's remote areas, where weather conditions and infrastructure are difficult. (Reporting from Marwa Hirtenstein and Anna Hirtenstein, in London; Additional Reporting by Timothy Gardner, in Washington; Oksana Kobieva in Moscow; Editing done by Rosalba o'Brien.)
This week in Asian Football
Discussion points on Asian football this week:
KYOTO MOVE INTO POLE POSITION IN J-LEAGUE WITH TOKYO WIN
Kyoto Sanga beat Tokyo Verdy by a score of 1-0 to move to the top spot in the J-League Standings. Kashima Antlers had to settle for a 1-1 tie with Avispa Fukuoka, and Kashiwa Reysol suffered a 2-1 defeat to Fagiano Okama.
Rafael Elias scored the only goal in the game at the 66th-minute mark to put Kyoto on 48 points, ahead of Kashima in goal-difference and Kashiwa in third.
The top seven teams are separated by four points. Machida Zelvia is in fourth place, Sanfrecce Hiroshima in fifth, Vissel Kobe, the defending champions, dropped to sixth following their 1-0 defeat to Yokohama FC, and Urawa Red Diamonds were in seventh.
SHANGHAI PORT RECEIVES TOP SPOT AS RIVALS SHENHUA HELD
Shanghai Port, the defending champions of the Chinese Super League, returned to the top spot after Kevin Muscat's team thrashed Henan FC 4-1 on Friday. Meanwhile, Shanghai Shenhua was held to a draw at 0-0 by Zhejiang FC in the Chinese Super League on Saturday.
Port won its 14th match of the season with four goals from Wang Shenchao (Mateus Vital), Leonardo (Oscar Melendo), and Leonardo (Wang Shenchao).
Shanghai Port, after the win and Shenhua’s result, now leads the standings by one point, with Beijing Guoan third, following their 3-1 win over Qingdao West Coast.
COMPAGNO SCORE TWICE TO INCREASE JEONBUK’S K-LEAGUE LEEAD
Jeonbuk Motors extended its lead at the top of the K-League to 17 points with a 3-0 victory over Daegu FC on Saturday.
Andrea Compagno, an Italian striker, scored two goals before Jeon Jin -woo added a third goal with seven minutes left to seal the three points. Gus Poyet’s team increased their lead because Daejeon Citizen lost 2-0 to Gwangju FC.
Gimcheon jumped up to second place as the army side thrashed FC Seoul 6-2. Goals from Lee Donggyeong (second half), Lee Dongjun (second half) and Kim Chan (second-half) helped seal the points.
CHAMPIONS NORTHEAST UNION REACH THE LAST FOUR FINALISTS IN DURAND CUP
NorthEast United, the defending champions, advanced to the Durand Cup semi-finals on Sunday after a 4-0 victory over Bodoland FC. Meanwhile Diamond Harbour, a second-tier team from the state of West Bengal, won a surprising 2-0 win against Jamshedpur FC.
East Bengal advanced too, as Dimitrios Diamantakos' two goals helped his team to a 2-1 victory over rivals Mohun Bagan Super Giant in the Kolkata derby.
Shillong Lajong FC won the semi-finals with a 2-1 win against Indian Navy. (Reporting and editing by Jacqueline Wong; Michael Church)
(source: Reuters)