Qantas share price dips amid latest Federal Court news

The Federal Court has ordered new Qantas CEO Vanessa Hudson to personally attend mediation with the union next Monday.

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The Qantas Airways Limited (ASX: QAN) share price is down 0.37% to $5.43 in late morning trading.

The broader market is also weaker today, with the S&P/ASX 200 Index (ASX: XJO) down 0.4%.

Following the Federal Court's ruling last week that Qantas illegally sacked 1,683 workers during the pandemic, the court has ordered Qantas to enter into mediation with the Transport Workers' Union.

The purpose of the mediation is to determine the level of compensation for the sacked employees.

And new Qantas CEO Vanessa Hudson will have to attend personally.

Here are a few more details about today's news.

Qantas share price lower as CEO ordered into mediation

According to The Australian, Federal Court justice Michael Lee ordered that the mediation begin on Monday.

Lee wants the matter finalised at the next case management hearing, which is scheduled for 27 October.

In his order, Lee specifically stated that Hudson and TWU national secretary Michael Kaine must attend the mediation themselves.

Qantas asked if its head counsel could attend in Hudson's place, but Lee denied the request.

He said:

I don't want it to be attended to by a lawyer. I want it to be attended by the CEO and the head of the union.

It is appropriate in escalating it to an appropriate level to maximise prospects of settlement.

Lee appointed former federal court chief justice James Allsop AC as the mediator.

Since the judgement was handed down last week, Kaine has called for the Qantas board to be sacked.

He also said:

Vanessa Hudson was side by side with Alan Joyce during his tenure. If she's to stay around she needs to turn over a new leaf at Qantas.

Qantas stock suffers amid scandals

The Qantas share price has fallen 18% in two months, as shown in the chart below, amid various scandals.

The company intended to let travel credits for cancelled flights during COVID-19 expire at the end of 2023 but changed its mind amid a public backlash.

There's also been the drama surrounding the federal government's decision to deny Qantas rival Qatar Airways additional flights into Sydney and Melbourne.

The ACCC is also taking legal action against the airline, alleging it sold tickets for flights that had already been cancelled.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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