In a landmark ruling, Justice Michael Lee expressed hope that the hefty penalty would deter other companies from similar unlawful actions, highlighting Qantas’ conduct and the impact on its employees.
Qantas Faces Historic A$90 Million Fine for Pandemic Layoffs
Qantas Faces Historic A$90 Million Fine for Pandemic Layoffs
An Australian court has dealt a historic blow to Qantas with a record A$90 million fine for illegally laying off over 1,800 ground staff during the pandemic.
Australian airline Qantas has been handed a staggering A$90 million fine, marking it as the largest ever imposed by a court for breaches of industrial relations laws in Australia. The Federal Court ruled against the airline for unlawfully dismissing more than 1,800 ground handling workers during the Covid-19 crisis, an act that Australia's Transport Workers' Union (TWU) is celebrating as a significant victory for workers' rights.
Justice Michael Lee, who presided over the case, emphasized the need for this fine to serve as a "real deterrence" to other employers contemplating similar measures. The penalty is particularly striking as it comes on top of an additional A$120 million in compensation that Qantas had previously agreed to pay to the laid-off employees in 2024 after facing multiple legal setbacks.
The airline stated it would comply with the ruling and acknowledged the pain caused to its former employees due to its outsourcing decision made during the economically tumultuous pandemic period. Qantas Group CEO Vanessa Hudson issued an apology, recognizing the hardships endured by those affected and their families due to the airline's decision.
The TWU's legal action against Qantas marked the culmination of a lengthy battle over the airline's 2020 decision to outsource its ground operations staff, a move it justified as a necessary response to the pandemic-related downturn in travel. However, the court found that this change was also aimed at minimizing the risk of industrial action from unionized workers. The union’s statement hailed the verdict as a "moment of justice" for the dedicated workers who had loved their jobs with the airline.
Judge Lee criticized Qantas for its "unrelenting and aggressive" legal tactics throughout the court proceedings, raising concerns about the genuineness of the airline's remorse over its actions. He noted that many of those laid off were union members, and pointed to the need for large companies to reconsider the risks of unlawful dismissals framed as economic decisions.
In recent history, Qantas has faced multiple controversies, including a A$100 million penalty for selling tickets for flights that it had intended to cancel, adding to the scrutiny of the airline's practices. The recent ruling will likely revive discussions about appropriate penalties for labor violations, particularly if future fines are deemed insufficient to deter such practices in the corporate landscape.
