Qantas Fined Record A$90 Million for Unlawfully Firing Over 1,800 Workers During Pandemic
In a landmark ruling, an Australian court has ordered Qantas to pay a massive fine of A$90 million for unlawfully sacking over 1,800 ground staff during the COVID-19 pandemic. The fine is the largest ever handed down in Australia under industrial relations laws, sending a strong message to big corporations about respecting workers' rights.
The case, which has stretched on for five years, came to a close with Justice Michael Lee of the Federal Court calling the airline’s actions a serious breach of workplace laws. He said the penalty was meant to serve as a "real deterrent" to other companies that might consider putting profits ahead of people in a similar way.
The Transport Workers' Union (TWU), which took legal action against Qantas, welcomed the decision. They called it a long-awaited moment of justice for the employees and their families who were suddenly left without jobs during one of the most uncertain times in recent history.
Back in 2020, Qantas decided to outsource its ground operations, claiming it was a financial necessity due to the sharp decline in air travel caused by the global pandemic. However, the court later found that the move was not just about cutting costs — it was also aimed at weakening union power by preventing workers from taking industrial action.
Qantas has since accepted the court's ruling and agreed to pay the fine. In a public statement, the airline acknowledged the harm it caused to its former staff. CEO Vanessa Hudson issued an apology, saying, “We are truly sorry to each and every one of the 1,820 employees and their families who suffered from this decision. It caused real hardship, and we take full responsibility.”
Of the total fine, A$50 million will go directly to the TWU, the organization that fought the lengthy legal battle on behalf of the workers. The court's decision follows a separate agreement made earlier this year in which Qantas agreed to pay A$120 million in compensation to those laid off.
Despite the record-breaking penalty, some experts argue it may still fall short of being a strong enough deterrent. Dan Trindade, a workplace law expert, pointed out that the savings Qantas may have made by outsourcing could outweigh the penalties — raising concerns that other companies might try to take the same risk. If that's the case, there may be growing pressure on the government to increase the fines allowed under the Fair Work Act.
The court also raised concerns about Qantas’ behavior during the trial, describing its legal strategy as aggressive and relentless. Justice Lee questioned whether the airline’s apology was genuine, considering its earlier efforts to avoid paying compensation.
This case is one of several recent controversies involving Qantas, including a major scandal last year when the airline was fined A$100 million for selling tickets on flights it had already canceled
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