Qantas Fined Record A$90m Over Pandemic Layoffs
Australia’s national carrier, Qantas, has been hit with a record A$90m (£43m; $59m) penalty after a court ruled the airline illegally dismissed more than 1,800 ground staff during the Covid-19 pandemic.
The fine, the largest ever imposed under Australia’s workplace laws, follows years of legal disputes after the airline outsourced its ground handling operations in 2020. Federal Court Justice Michael Lee said the ruling was intended to serve as a “real deterrent” to other employers considering similar actions.
Qantas confirmed it would pay the penalty, with A$50m directed to the Transport Workers’ Union (TWU), which spearheaded the legal battle. Chief executive Vanessa Hudson issued an apology, acknowledging the hardship caused to employees and their families, and said the airline accepts accountability for its actions.
The TWU described the outcome as a “moment of justice” for workers, calling it the conclusion of a “David and Goliath” struggle against Australia’s largest airline.
Qantas had already agreed to A$120m in compensation last year after losing multiple appeals, but the court questioned whether the company’s remorse was genuine, citing its “unrelenting and aggressive” legal approach.
Despite the scale of the fine, some legal experts noted that Qantas may still have benefited financially from outsourcing, and warned that the case could prompt calls for higher penalties under the Fair Work Act.
The ruling adds to recent controversies for the airline, including a separate A$100m penalty last year for selling tickets on flights it had already cancelled.
