Australia’s largest airline, Qantas, has been handed a record-breaking fine of A$90 million (£43m; $59m) by the Federal Court for unlawfully laying off over 1,800 ground workers during the height of the Covid-19 pandemic. This landmark penalty is the most severe ever imposed under Australia’s Fair Work Act and serves as a clear warning to other large corporations.
The legal case, brought forward by the Transport Workers’ Union (TWU), concluded that Qantas had breached industrial laws when it outsourced its ground handling staff in 2020. The airline claimed the decision was necessary to cut costs while aviation operations were grounded globally. However, the court found that the move was partly motivated by an effort to weaken union influence and reduce the risk of industrial action.
Justice Michael Lee, who presided over the case, stated that the fine was designed to send a message to corporations that legal compliance cannot be brushed aside—even in financially difficult times. He ordered that A$50 million of the fine be paid directly to the TWU, acknowledging their role in advocating for the affected workers.
Vanessa Hudson, CEO of Qantas Group, issued a public apology, saying the airline accepts full responsibility and deeply regrets the harm caused to the 1,820 employees and their families. “The decision to outsource caused real hardship during an already uncertain time,” she admitted.
Despite Qantas agreeing to the fine, the court questioned the sincerity of the airline’s remorse. Judge Lee pointed to Qantas’ “unrelenting and aggressive” legal tactics, which he said were aimed at avoiding financial accountability, as evidence that the company had not genuinely accepted responsibility.
The penalty follows a separate A$120 million compensation agreement Qantas reached earlier in 2024 with the affected workers. But experts like Dan Trindade from law firm Clayton Utz have warned that the total penalties may still fall short of discouraging similar behavior by other companies. “If the financial benefit of outsourcing outweighs the fines, then the law may not be strong enough,” Trindade said.
This case is one in a series of scandals that have marred Qantas’ reputation in recent years. In 2023, the airline was also fined A$100 million for selling tickets on flights that had already been canceled.
The TWU described the verdict as “a moment of justice” after a five-year battle on behalf of loyal workers who had dedicated their careers to the airline.
