An Australian court has imposed a record A$90m (£43m; $59m) fine on Qantas for illegally dismissing more than 1,800 ground workers during the Covid-19 pandemic.
The ruling, the largest penalty ever under Australia’s Fair Work Act, followed a years-long legal battle after Qantas outsourced ground operations in 2020. Federal Court Justice Michael Lee said the fine was intended to serve as “real deterrence” to other companies considering similar actions.
Qantas, which has already agreed to pay A$120m in compensation to affected employees, accepted the penalty and issued an apology. Chief executive Vanessa Hudson admitted the decision had caused “genuine hardship” to staff and their families.
Of the total fine, A$50m will go directly to the Transport Workers’ Union, which spearheaded the legal challenge. The union hailed the ruling as the end of a “David and Goliath battle” and a landmark moment of justice for workers.
Despite this, critics argue the financial penalty may still fall short of preventing similar conduct by other corporations, noting Qantas may have saved more through outsourcing than the penalty now imposed.
The ruling adds to recent scandals plaguing Qantas, including last year’s A$100m fine for selling tickets on cancelled flights, raising further questions about the airline’s corporate culture.
