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SYDNEY, August 18, 2025 — Qantas Airways, Australia’s flagship carrier, has been fined A$90 million (US$58.64 million) by the Federal Court for illegally terminating 1,800 ground staff during the COVID-19 pandemic. The ruling marks one of the largest corporate penalties ever imposed under Australia’s workplace laws.
⚖️ Court Ruling and Penalty Breakdown
Federal Court Justice Michael Lee delivered the judgment on Monday, stating that the penalty was designed to serve as a “real deterrence” to large corporations that might otherwise view legal violations as a cost of doing business. The court found that Qantas breached employment laws by outsourcing jobs in August 2020, thereby preventing affected workers from engaging in collective bargaining and industrial action.
Of the total fine:
- A$50 million will be paid directly to the Transport Workers’ Union (TWU), which brought the case on behalf of the dismissed employees.
- A$40 million will be held for future payments to the affected workers.
This penalty is in addition to a previously agreed A$120 million compensation settlement between Qantas and the TWU, finalized nine months earlier.
🧳 Background: Outsourcing During Crisis
The layoffs occurred during the height of the pandemic in 2020, when Qantas outsourced its baggage handling, cleaning, and ground operations to third-party contractors. The airline cited commercial imperatives amid border closures and plummeting travel demand. However, the court determined that the move was unlawful and strategically aimed at weakening union influence.
Qantas appealed the initial ruling to the High Court, which upheld the Federal Court’s decision, clearing the way for Monday’s penalty.
🗣️ Reactions and Industry Impact
TWU National Secretary Michael Kaine described the ruling as a “final win” for workers, emphasizing that the decision sends a strong message to corporate Australia.
“Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history,” Kaine said outside the court.
Former Qantas employees expressed relief after a five-year legal battle, with some recounting how they learned of their dismissals via loudspeaker announcements in staff lunchrooms.
Qantas shares dipped 0.13% in early trading following the announcement.
📉 Reputation and Leadership
The airline, long branded as the “Spirit of Australia,” has faced mounting criticism over its handling of staff and passengers in recent years. In addition to the illegal layoffs, Qantas was previously fined for selling tickets on cancelled flights. The company’s leadership transitioned in 2023, with Vanessa Hudson taking over as CEO from Alan Joyce, who stepped down amid public backlash.
Qantas-Airbus-A330-202-Sydney-International-Airport-Picture-by-Mitchul-Hope
