Qantas aircraft grounded at Brisbane Airport during the COVID-19 travel shutdown. (AAP: Darren England)
Australia’s largest airline, Qantas Airways, has been ordered by the Federal Court to pay a record A$90 million fine for unlawfully terminating 1,820 ground staff during the COVID-19 pandemic. The court ruled that Qantas’s decision to outsource baggage handling and cleaning services breached Australian labor laws, marking the largest penalty in the country’s history for such violations.
Justice Michael Lee, who presided over the case, criticized Qantas for its lack of genuine remorse and its aggressive litigation tactics. He noted that the airline’s public apologies appeared more focused on mitigating reputational damage than on acknowledging the harm caused to employees. The fine includes A$50 million to be paid to the Transport Workers’ Union , which initiated the legal action on behalf of the affected workers.
In addition to the fine, Qantas had previously agreed to a separate A$120 million compensation package for the dismissed employees. This settlement was reached after Australia’s High Court unanimously upheld the ruling that the outsourcing of jobs was illegal. The compensation aims to address the economic losses and emotional distress suffered by the former staff members.
The TWU welcomed the court’s decision, describing it as a landmark victory for workers’ rights and a strong message to corporations about adhering to labor laws. National Secretary Michael Kaine emphasized that the ruling serves as a deterrent to other companies considering similar actions.
Qantas CEO Vanessa Hudson issued a formal apology to the affected employees and their families, acknowledging the genuine hardship caused by the outsourcing decision. She emphasized the airline’s commitment to rebuilding trust with its workforce and customers.
This case underscores the importance of corporate accountability and the need for companies to uphold workers’ rights, especially during challenging times such as the COVID-19 pandemic. The substantial penalties imposed on Qantas highlight the judiciary’s commitment to enforcing labor laws and protecting employees from unfair treatment.
