Source: BBC
Australian airline Qantas has been ordered to pay a record A$90 million ($59 million / £43 million) penalty after a Federal Court ruled that it illegally sacked more than 1,800 ground workers during the Covid-19 pandemic.
The fine, the largest ever imposed under Australia’s Fair Work Act, comes after a five-year legal battle spearheaded by the Transport Workers’ Union (TWU). The case centred on Qantas’ 2020 decision to outsource ground handling staff in the midst of the pandemic — a move the airline had argued was necessary to cut costs but which courts later determined was unlawful.
Court Ruling and Accountability
Justice Michael Lee, who delivered the ruling, stressed that the penalty was intended to serve as a “real deterrence” for other corporations. He criticized Qantas’ legal approach as “unrelenting and aggressive” and questioned whether the airline’s expressions of remorse were genuine.
Qantas has agreed to pay the fine and issued an apology. Vanessa Hudson, Qantas Group’s chief executive, acknowledged the hardship caused:
“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result. The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship.”
Of the total penalty, A$50 million will go directly to the TWU, which launched the original lawsuit.
Wider Context and Financial Impact
The penalty is in addition to the A$120 million compensation package that Qantas agreed to pay affected workers in 2024 after losing multiple appeals. Despite the significant financial costs, experts caution that the fine may not outweigh the financial benefits Qantas gained from outsourcing.
Employment law specialist Dan Trindade of Clayton Utz noted that if the penalty is not viewed as sufficient deterrence, lawmakers may face pressure to raise maximum fines for workplace law violations.
Union Victory and Corporate Lessons
For the TWU, the ruling marked the conclusion of what it described as a “David and Goliath battle”, delivering justice for long-serving employees who had been loyal to the airline.
The case also raises broader questions around corporate culture and governance. By outsourcing to reduce the risk of industrial action, Qantas undermined its workforce and provoked one of the most high-profile industrial relations disputes in Australian history.
A Company Under Scrutiny
The outsourcing scandal is not the only controversy to hit Qantas in recent years. In 2024, the airline was fined A$100 million for selling tickets on flights it had already cancelled, adding to reputational challenges at a time when public trust has been tested.
For Qantas, the record fine is not just a financial penalty — it represents a moment of accountability, highlighting the risks companies face when cost-cutting measures override compliance and workforce relations.
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IMAGE: Reuters
