An Australian court has fined airline giant Qantas 90 million Australian dollars for unlawful sackings during the Covid-19 crisis. The company dismissed more than 1,800 ground staff in 2020.
Australia’s Transport Workers’ Union welcomed the decision. It called the fine the largest ever for breaches of industrial relations law.
Court sends a strong warning
Federal Court Justice Michael Lee said the penalty must act as a real deterrent. He stressed that employers cannot ignore legal obligations.
Qantas accepted the ruling and announced it will pay the fine. The company acknowledged the harm caused 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 caused severe hardship during uncertain times.
Largest penalty under workplace law
The fine is the biggest ever imposed on an Australian company under the Fair Work Act. That law sets rules for workers and employer responsibilities.
Qantas decided in 2020 to outsource its ground operations. The airline said the move was necessary as the aviation industry came to a halt 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 described the ruling 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 said it should discourage other firms from similar actions.
However, he questioned Qantas’ sincerity. Court records showed the airline used an “unrelenting and aggressive” legal strategy to avoid paying compensation, contradicting 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.
Additional compensation payments
On top of the fine, Qantas had agreed in 2024 to pay 120 million dollars in compensation. This followed several failed appeals.
Employment law expert Dan Trindade from Clayton Utz warned the penalty might not fully deter other companies. Outsourcing could still save firms more than the cost of fines.
“If it fails as deterrence, the government may face calls to increase penalties,” he said.
Airline faces multiple scandals
The layoffs are not the only controversy for Qantas. In 2024, the airline also paid 100 million dollars for selling tickets on flights it had already cancelled.
