Qantas has been fined a record A$90 million by an Australian court for illegally sacking 1,800 ground staff during the Covid-19 pandemic. The Transport Workers’ Union hailed the decision as a historic victory for workers under the Fair Work Act.
Australian Court Imposes Record Penalty on Qantas
Australia’s Federal Court has ordered Qantas to pay A$90 million (£43m; $59m) for unlawfully outsourcing 1,800 ground handling jobs during the Covid-19 crisis. Justice Michael Lee said the penalty was intended to be a “real deterrent” against future workplace law breaches.
The fine is the largest ever handed down in Australian industrial relations history and comes under the Fair Work Act, which governs workplace protections.
Transport Workers’ Union Welcomes “Justice for Workers”
The Transport Workers’ Union (TWU), which led the five-year legal battle, welcomed the decision as “justice for loyal workers who loved their jobs.” The court also ordered Qantas to pay A$50 million of the penalty directly to the TWU.
Qantas CEO Issues Apology
Qantas Group CEO Vanessa Hudson said the airline accepted the ruling and apologized to affected staff.
“We are sincerely sorry to the 1,820 ground handling employees and their families who suffered as a result of this decision,” Hudson said. “The choice to outsource during such uncertain times caused real hardship.”
Previous Compensation and Legal Battles
The ruling follows earlier court findings that Qantas acted to prevent industrial action by unionized workers. In 2024, after losing multiple appeals, the airline agreed to pay A$120 million in compensation to affected staff.
Justice Lee criticized Qantas’ “relentless and aggressive” legal strategy and questioned whether its expressions of regret were genuine.
Experts Say Fine May Not Deter Other Companies
Employment law specialist Dan Trindade from Clayton Utz said that while the penalty was historic, it may not outweigh the financial benefits Qantas gained by outsourcing staff during the pandemic. “If it is not seen as sufficient deterrence, the government may face pressure to increase maximum penalties,” he said.
A Growing List of Qantas Scandals
The illegal sackings add to a string of controversies for Australia’s largest airline. In 2023, Qantas was fined A$100 million for selling tickets on thousands of flights it had already decided to cancel.
