Qantas Fined $90M Over Illegal Pandemic Layoffs
Qantas has been hit with a historic A$90 million fine after illegally firing 1,820 ground staff during the COVID-19 pandemic. The layoffs happened in 2020, when Qantas outsourced baggage and cleaning jobs, a move the court later ruled was illegal under the Fair Work Act. In a scathing ruling, Federal Court Justice Michael Lee said the airline showed the “wrong kind of sorry,” questioning its remorse and slamming its aggressive legal tactics. The judge also noted the airline acted to prevent staff from unionizing and called out the company’s decision to appeal the ruling immediately without, he added, “any time passing” to reflect on the judgment.
Qantas CEO Vanessa Hudson acknowledged the “real harm” caused, stating, “We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families.” But Justice Lee wasn’t convinced by the apology, adding the fine had to be large enough that it “could not be perceived as anything like the cost of doing business.” The penalty is the largest ever under Australia’s labour laws, and the union says it sends a message: “This ruthless, self-interested and illegal calculation… has rightfully merited the largest ever penalty of its kind.”
Of the fine, A$50 million will go to the Transport Workers' Union, which fought a five-year legal battle against the airline. “Against all the odds, we took on a behemoth ... and we won,” said TWU national secretary Michael Kaine. Qantas has separately agreed to pay A$120 million in compensation to affected workers but insisted the outsourcing was a commercial decision made during uncertain times.
