An Australian court has fined airline giant Qantas 90 million Australian dollars for unlawful sackings during the Covid-19 crisis. The company had dismissed more than 1,800 ground staff in 2020.
Australia’s Transport Workers’ Union welcomed the decision. It called the fine the largest in history for breaches of industrial relations law.
Court delivers a clear warning
Federal Court Justice Michael Lee said the penalty must serve as real deterrence. He stressed that employers must know such conduct has consequences.
Qantas accepted the ruling and announced it will pay the fine. The company admitted it caused harm to its workers.
“We sincerely apologise to all 1,820 employees and their families who suffered,” said chief executive Vanessa Hudson. She added that the outsourcing decision created deep hardship during uncertain times.
Largest fine under workplace law
The penalty is the biggest imposed on any Australian company under the Fair Work Act. That law sets the framework for workers’ rights and employer obligations.
Qantas decided in 2020 to outsource its ground operations. The airline argued it faced financial collapse as global aviation ground to a halt.
Union secures part of the payout
The court ordered Qantas to pay 50 million dollars directly to the Transport Workers’ Union. The union had taken legal action on behalf of staff.
Union leaders hailed the outcome as the end of a “five-year David and Goliath battle.” They called it a moment of justice for loyal workers who loved their jobs.
Judge questions airline’s remorse
The fine is close to the maximum allowed by law. Judge Lee underlined that it should discourage other firms from repeating such actions.
But he doubted Qantas’ sincerity. Court records showed the airline pursued an “unrelenting and aggressive” legal strategy to avoid compensation. That behaviour clashed with its public expressions of regret.
In 2021, the court found Qantas outsourced jobs partly to prevent industrial action. Many of the dismissed workers were union members.
Extra millions in compensation
On top of the fine, Qantas had already agreed in 2024 to pay 120 million dollars in compensation. The settlement came after the company lost several appeals.
Employment law expert Dan Trindade from Clayton Utz warned the penalty might not be enough. Outsourcing could still save firms more money than fines cost them.
“If it fails as deterrence, the government may face calls to increase penalties,” he said.
Airline hit by multiple scandals
The layoffs are not the only scandal for Qantas. In 2024, the airline was also ordered to pay 100 million dollars for selling tickets on flights it had already cancelled.
