Australia’s largest airline has been hit with a record penalty for unlawfully sacking staff during the Covid-19 crisis.
The Federal Court fined Qantas A$90 million for illegally laying off more than 1,800 ground workers in 2020. The Transport Workers’ Union (TWU) called it the biggest employer penalty in Australia’s history.
Court Decision
Justice Michael Lee said the fine should act as a “real deterrence” to other companies. He criticized Qantas’ “unrelenting and aggressive” legal tactics aimed at avoiding compensation.
The airline said it accepted the ruling and would pay the fine. “We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result,” Qantas chief executive Vanessa Hudson said.
The court ordered that A$50 million of the penalty go directly to the TWU, which brought the case against Qantas.
Union Response
The TWU described the ruling as the “end of a David and Goliath five-year battle” and a moment of justice for loyal workers. Many of those laid off were union members, and earlier rulings found the outsourcing partly aimed at limiting industrial action.
Background
Qantas argued at the time that outsourcing ground operations was necessary to survive the pandemic shutdown. But the courts repeatedly rejected its appeals, ruling the move unlawful.
The fine comes on top of A$120 million in compensation Qantas agreed to pay workers last year.
The company has faced a series of scandals in recent years. In 2024, it was fined A$100 million for selling tickets on flights it had already cancelled.
