Australia’s largest airline, Qantas, has been hit with a record fine for unlawfully outsourcing nearly 2,000 ground handling jobs during the height of the COVID-19 pandemic. The Federal Court imposed a A$50 million penalty, the largest ever issued under the Fair Work Act, marking a significant victory for workers and unions.
Justice Michael Lee, who delivered the ruling, said the penalty was intended to serve as “real deterrence” to other major employers. He criticized Qantas’ corporate culture, pointing to its “unrelenting and aggressive” legal strategy that appeared designed to avoid compensating workers despite public apologies.
The layoffs, which affected 1,820 employees in 2020, were justified by the airline at the time as a necessary financial measure while the aviation industry was grounded. However, the court later found that Qantas had partly outsourced the workforce to limit union-led industrial action.
In addition to the fine, Qantas has already agreed to pay A$120 million in compensation to the dismissed workers following a series of failed appeals. Of the A$50 million penalty, the court directed that the entire amount be paid to the Transport Workers’ Union (TWU), which had brought the case forward.
TWU national secretary Michael Kaine hailed the ruling as “the end of a David and Goliath five-year battle” and “a moment of justice for loyal workers who loved their jobs.”
Qantas Group CEO Vanessa Hudson issued a public apology, acknowledging the hardship the decision 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.”
Despite the record fine, some legal experts questioned whether the penalty would deter similar corporate behavior. Dan Trindade, an employment law specialist, noted that Qantas may have still saved more by outsourcing, suggesting the government may face pressure to increase penalties under workplace laws.
The scandal adds to a string of controversies for Qantas, including a separate A$100 million penalty last year for selling tickets on flights it had already canceled.
