Australian airline Qantas Airways has been fined AUD90 million for unlawfully dismissing more than 1 800 ground staff during the Covid-19 pandemic.
The penalty, one of the heaviest ever imposed for breaches of Australian labour laws, comes in addition to the AUD120 million the carrier had already agreed to pay in compensation to the affected workers.
The Federal Court in Sydney found that Qantas’s decision to outsource roles such as baggage handling and cleaning at airports in late 2020 constituted the most serious breach of workplace laws in the country’s history.
The airline had planned to save approximately AUD125 million annually through outsourcing.
The court was highly critical of Qantas’s aggressive legal tactics and questioned the sincerity of the airline’s subsequent apology.
Qantas CEO Vanessa Hudson expressed regret for the hardship caused to dismissed employees and their families and pledged to rebuild trust with both staff and customers.
The Transport Workers Union, which initiated the legal action, welcomed the judgment as a significant victory for workers’ rights.
Of the fine, AUD50 million will be awarded to the union for exposing Qantas’s unlawful conduct, with the remainder to be allocated in a forthcoming hearing.
This case serves as a stark reminder of the legal protections available to employees and the serious consequences companies face when breaching labour laws during challenging times.
