An Australian court has fined airline giant Qantas 90 million Australian dollars for illegally sacking more than 1,800 ground staff during the Covid-19 crisis.
Australia’s Transport Workers’ Union welcomed the ruling. It called the fine the largest ever imposed for breaches of industrial relations law.
Court issues strong deterrent
Federal Court Justice Michael Lee said the penalty must act as a real deterrent. He stressed that employers must face consequences for unlawful actions.
Qantas accepted the decision and confirmed it will pay the fine. The company acknowledged the harm caused to its employees.
“We sincerely apologise to all 1,820 employees and their families who suffered,” said chief executive Vanessa Hudson. She added that outsourcing caused severe hardship during uncertain times.
Largest penalty under Australian workplace law
The fine is the highest ever under the Fair Work Act, which sets rules for employees and employer responsibilities.
In 2020, Qantas outsourced its ground operations. The airline said the move was necessary as the aviation industry froze during the pandemic.
Union secures part of the payout
The court ordered Qantas to pay 50 million dollars directly to the Transport Workers’ Union. The union had sued the airline on behalf of staff.
Union leaders called the ruling the end of a “five-year David and Goliath battle.” They described it as a moment of justice for loyal workers who loved their jobs.
Judge questions airline’s remorse
The fine is near the legal maximum. Judge Lee said it should deter other companies from similar actions.
However, he questioned Qantas’ sincerity. Court records showed the airline used an “unrelenting and aggressive” legal strategy to avoid paying compensation, despite publicly expressing regret.
In 2021, the court found Qantas outsourced jobs partly to prevent industrial action. Many of the dismissed workers were union members.
Extra compensation on top of fine
Qantas had already agreed in 2024 to pay 120 million dollars in compensation, after losing several appeals.
Employment law expert Dan Trindade from Clayton Utz warned the fine might not fully deter others. Outsourcing could still save firms more than fines cost them.
“If it fails as deterrence, the government may face calls to increase penalties,” he said.
Airline faces multiple scandals
The layoffs are not Qantas’ only controversy. In 2024, the airline paid 100 million dollars for selling tickets on flights it had already cancelled.
