Qantas Airways, Australia’s biggest airline, has been ordered by a court to pay a record fine of A$90 million for unlawfully firing nearly 1,820 ground staff during the Covid-19 pandemic in 2020. The airline’s decision to lay off staff and replace them with contractors was ruled as illegal, breaching Australia’s workplace laws.
The court criticised Qantas for its attitude and approach during the case, suggesting that the airline’s apologies appeared more motivated by damage control than genuine remorse for the harm caused to its workers. The judge highlighted that the airline’s recent expressions of regret did not convince him of sincere contrition. Instead, they seemed more about protecting its reputation and avoiding further damage.
The A$90 million penalty is the largest ever imposed on an Australian company for labour law violations, with A$50 million of the fine set to go to the Transport Workers’ Union (TWU), which brought the case. The union’s national secretary praised their effort, stating that they challenged a powerful corporation and succeeded.
Back in December, Qantas and the affected workers agreed to a A$120 million compensation fund, but the court’s ruling focused on the unlawful actions taken during the pandemic. The airline argued that its decision was purely commercial, but the court found that it was “adverse action” that prevented staff from exercising their workplace rights and unionising, in violation of Australia’s Fair Work Act.
The court also criticised Qantas’ legal behaviour, including its decision to appeal the 2021 court ruling without fully accepting the findings. When the appeal failed, Qantas issued statements that the judge saw as attempts to spin the outcome rather than admit fault. The judge also pointed out that the airline’s current CEO, Vanessa Hudson, was kept out of the courtroom during the litigation, which he saw as a sign of avoiding accountability.
Legal experts and the union welcomed the record-breaking fine, seeing it as a message to other employers that breaking employment laws comes with serious consequences. Qantas has said it will pay the fine and issued a formal apology to all affected workers and their families. Despite the verdict, Qantas’ share price dropped slightly in early trading, reflecting ongoing investor concern over the airline’s handling of the case.