Qantas fined AU$90 million for illegal pandemic layoffs
Australian Federal Court Justice Michael Lee described the outsourcing of 1,820 baggage handler and cleaner positions in late 2020 as the “largest and most significant” violation of labor laws in Australia’s 120-year history.
Qantas Airways has been fined AU$90 million ($59 million) for unlawfully dismissing more than 1,800 ground staff at the start of the Covid-19 pandemic. The penalty comes on top of AU$120 million ($78 million) in compensation the airline had already agreed to pay its former employees.
Australian Federal Court Justice Michael Lee described the outsourcing of 1,820 baggage handler and cleaner positions in late 2020 as the "largest and most significant" violation of labor laws in Australia's 120-year history.
The Transport Workers Union, which brought the case, had sought the maximum fine of AU$121 million ($79 million). Lee said the AU$90 million penalty would serve as a deterrent, noting Qantas executives had expected annual savings of AU$125 million ($81 million) from outsourcing.
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Qantas CEO Vanessa Hudson apologized to affected staff, acknowledging the hardships caused. AU$50 million ($33 million) of the fine will go to the union, with a hearing scheduled to determine the allocation of the remaining amount.
The ruling ends a five-year legal battle and is hailed as the most significant industrial outcome in Australia's history.
