Qantas Airways (ASX:QAN) has been slapped with a record A$90 million (US$59 million / R$318.14 million) fine by the Federal Court of Australia for unlawfully terminating around 1,820 ground staff during the Covid-19 pandemic. The ruling concludes a prolonged legal fight led by the Transport Workers Union.
Judge Michael Lee described the airline’s actions as the “most serious violation” of the Fair Work Act, emphasizing that the punishment aims to discourage other firms from similar behavior. “Any lower penalty would not have the effect of preventing similar violations in the future,” he added.
Of the total fine, A$50 million will be directed to the union that initiated the case, while a portion of the remainder may be allocated to affected employees. This penalty comes on top of a 2024 settlement, when Qantas paid A$120 million in compensation following unsuccessful legal appeals.
The layoffs occurred in 2020, at the peak of the pandemic, when ground operations were outsourced under then-CEO Alan Joyce. The airline cited financial strain caused by the global aviation collapse. The union, however, argued the move was designed to sidestep wage negotiations and potential strikes.
Judge Lee also took aim at Qantas’ corporate practices, describing the company’s defense as “relentless and aggressive.” He questioned whether the airline’s expressed remorse was sincere or simply “performative remorse” driven by concerns over its public image.
Current CEO Vanessa Hudson acknowledged the ruling and publicly apologized to former staff, stating that Qantas is committed to rebuilding trust with employees and customers after years of tarnishing its reputation.
This case comes amid other recent controversies for the airline, including fines for selling tickets on canceled flights. Analysts note that while the financial hit is significant, the court’s decision primarily damages Qantas’ reputation.
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