An Australian court has fined Qantas Airways US$59 million (Aus$90 million) for illegally laying off 1,800 ground staff during the Covid-19 pandemic. Federal Court Justice Michael Lee said the penalty was intended as a “real deterrence” for companies tempted to breach employment laws for financial gain. The ruling marks the end of a five-year legal battle that centered on the airline’s treatment of its workforce during one of the toughest economic periods.
Qantas had decided in August 2020 to outsource its ground handling jobs at a time when lockdowns and border closures were strict, and vaccines were not yet widely available. The Federal Court later found that the move was unlawful, as it blocked workers from exercising their rights to collectively bargain or take industrial action. An appeal filed by the airline was dismissed, leaving Qantas with no legal defense for its actions.
Once known as the “Spirit of Australia,” Qantas has faced mounting criticism in recent years. The airline struggled with public trust due to these illegal layoffs, rising ticket prices, poor service, and even the selling of tickets for flights that were already canceled. In 2023, Vanessa Hudson replaced Alan Joyce as chief executive and pledged to rebuild customer and employee confidence after widespread backlash.
Hudson admitted fault in a public apology following the ruling, saying the outsourcing decision had caused genuine hardship for employees and their families. She emphasized that Qantas had since spent 18 months changing its operations to “rebuild trust” and that this remained the airline’s highest priority. The court ruled that Aus$50 million of the fine would go to the Transport Workers Union, while Aus$40 million would be held for future payments to laid-off workers.
In addition to this fine, Qantas had already agreed last year to pay Aus$120 million in compensation to the affected workers. Former employees expressed relief after years of legal struggle, with many saying they could now finally move on from the trauma of losing their jobs. Transport Workers Union Secretary Michael Kaine hailed the decision as a “final win” for workers, declaring it the largest penalty against any employer in Australian corporate history.
Workers who lost their jobs during the outsourcing described the ruling as justice long overdue. Many had discovered their dismissal through impersonal announcements made in workplace lunchrooms. For them, the decision not only brings closure but also sets a precedent that corporate misconduct at the expense of employees will not go unpunished.