Canberra: Australia’s Federal Court has imposed a A$90 million (£43 million; $59 million) fine on Qantas Airways for unlawfully sacking more than 1,800 ground staff at the height of the Covid-19 pandemic. The landmark ruling marks the largest penalty ever imposed on an employer in Australian history.
Justice Michael Lee said the penalty should serve as ‘real deterrence’ for other corporations, noting Qantas’ ‘unrelenting and aggressive’ legal strategy to avoid paying compensation despite acknowledging the harm caused.
Qantas confirmed it would pay the fine and admitted accountability for its actions. Qantas Group CEO Vanessa Hudson remarked that, “We sincerely apologise to every one of the 1,820 ground handling employees and their families who suffered as a result. The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship.”
As part of the order, penalty will go directly to the Transport Workers’ Union (TWU), which brought the case against the airline. The TWU hailed the outcome as the end of a ‘David and Goliath’ five-year battle, calling it a moment of justice for loyal workers.
The fine comes on top of A$ 120 million ($78.2 million) in compensation already awarded to former staff last year, following Qantas’ failed appeals. It also follows a series of recent scandals, including a A$100 million ($65.2 million) penalty in 2024 for selling tickets on flights already cancelled.
Judge Lee stressed that Qantas’ actions in outsourcing its ground operations during 2020 were motivated partly by a desire to weaken union influence, and that the airline’s approach should be a warning to other companies not to prioritise risk over workers’ rights.
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