Qantas Airways has been fined 90 million Australian dollars ($59 million USD) for illegally laying off 1,820 ground workers during the early days of the COVID-19 pandemic. This historic ruling, in addition to the AU$120 million ($78 million) already agreed upon in compensation, marks one of the most significant legal rebukes in Australian labor history.
Outsourcing Backfires on Qantas
In 2020, Qantas outsourced 1,820 baggage handlers and cleaners, a move later deemed illegal by Australian courts. Federal Court Justice Michael Lee described it as the “largest and most significant contravention” of Australia’s labor laws in over a century. Despite a High Court ruling against the airline, Qantas continued to argue that it owed nothing to the laid-off employees—an action Lee harshly criticized.
“If any further evidence was needed of the unrelenting and aggressive litigation strategy adopted in this case by Qantas, it is provided by this effort directed to denying any compensation whatsoever,” said Justice Lee.
A Judge Questions Qantas’s Remorse
Though Qantas publicly apologized, Lee remained skeptical of the sincerity. “I do think that the people in charge of Qantas now have some genuine regret, but this more likely reflects the damage that this case has done to the company rather than remorse for the damage done to the affected workers,” he stated.
Qantas CEO Vanessa Hudson, who served as CFO during the layoffs, said: “We sincerely apologize to each and every one of the 1,820 ground handling employees and to their families who suffered as a result. Over the past 18 months we’ve worked hard to change the way we operate … This remains our highest priority.”
Union’s Role Recognized in Ruling
Justice Lee also directed AU$50 million ($33 million) of the fine to the Transport Workers Union, which initiated the legal battle. Lee credited the union for revealing the unlawful conduct, stating, “But for the union … Qantas’ contravening conduct would never have been exposed.”
Michael Kaine, the union’s national secretary, hailed the ruling: “It is a significant — the most significant — industrial outcome in Australia’s history … Against all the odds, we took on a behemoth that had shown itself to be ruthless and we won.”
Past Misconduct and Broader Pattern
This isn’t Qantas’s only pandemic-era controversy. The airline previously admitted to misleading consumers by selling tickets for over 8,000 flights that had already been canceled. It paid another AU$120 million ($78 million) in compensation and penalties in that separate case.
Final Hearing Still to Come
A future court hearing will determine the destination of the remaining AU$40 million ($26 million) from the fine. But the message from Australia’s legal system is clear: powerful employers who sideline legal obligations to workers during crises will face serious consequences.
The Qantas ruling sets a historic precedent in Australian labor law and reflects a growing intolerance for corporate impunity during times of crisis. As companies attempt to rebuild reputations post-pandemic, the public—and the courts—are watching.
