Qantas Fined Record A$90m For Illegal Pandemic Layoffs

Australia’s Federal Court has imposed a record A$90 million (£43m; $59m) fine on Qantas for illegally sacking more than 1,800 ground workers during the Covid-19 pandemic, BBC reported. The penalty is the largest ever handed down under the country’s Fair Work Act.

Justice Michael Lee, delivering the judgement, said the fine was intended as “real deterrence” to other large firms considering similar action. He also questioned Qantas’ corporate culture and whether its apology to workers reflected genuine remorse, noting the airline’s “unrelenting and aggressive” legal strategy.

Qantas said it accepted the ruling and would pay the fine, acknowledging that its 2020 decision to outsource ground operations caused “real harm.” Chief executive Vanessa Hudson apologised, saying: “The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.”

Of the penalty, A$50 million will be paid directly to the Transport Workers’ Union, which brought the case on behalf of laid-off staff. The union hailed the outcome as “the end of a David and Goliath five-year battle.”

The fine adds to A$120 million in compensation Qantas agreed to pay former employees last year, following a series of unsuccessful appeals.