An Australian court has fined airline giant Qantas 90 million Australian dollars for unlawfully sacking over 1,800 ground staff during the Covid-19 pandemic.
Australia’s Transport Workers’ Union welcomed the ruling. It described the fine as the largest ever for breaches of industrial relations law.
Court delivers 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 confirmed it will pay the fine. The airline 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.
Record-breaking penalty under workplace law
The fine is the highest ever under the Fair Work Act, which sets rules for employee rights and employer responsibilities.
In 2020, Qantas outsourced its ground operations. The airline argued the move was necessary as the aviation industry came to a standstill 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 sincerity
The fine is near the legal maximum. Judge Lee said it should discourage other companies from repeating such actions.
However, he questioned Qantas’ remorse. Court records showed the airline pursued 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.
Additional compensation payments
On top of the fine, Qantas had agreed in 2024 to pay 120 million dollars in compensation after losing several appeals.
Employment law expert Dan Trindade from Clayton Utz warned the penalty might not fully deter other firms. Outsourcing could still save companies more than fines cost them.
“If it fails as deterrence, the government may face calls to increase penalties,” he said.
Airline faces multiple controversies
The layoffs are not Qantas’ only scandal. In 2024, the airline paid 100 million dollars for selling tickets on flights it had already cancelled.
