Australia’s Federal Court has fined Qantas Airways AU$90 million (US$59 million) for illegally terminating 1,820 ground staff during the Covid-19 pandemic, marking the largest labor law penalty in the nation’s 120-year history. The ruling, issued by Justice Michael Lee on August 18, 2025, follows a fierce legal battle led by the Transport Workers’ Union (TWU), which exposed Qantas’s unlawful outsourcing of baggage handlers and cleaners across 10 Australian airports in August 2020. Combined with a prior AU$120 million (US$78 million) compensation agreement for affected workers, the penalty underscores the severe consequences of the airline’s actions during the global crisis.
The court determined that Qantas’s outsourcing violated labor laws by bypassing workers’ rights to collective bargaining and industrial action, a move Justice Lee labeled the “most significant contravention” of its kind in Australia. The decision, driven by an expectation of AU$125 million (US$81 million) in annual savings, was criticized for its “aggressive litigation strategy,” with Lee questioning the authenticity of Qantas’s public apologies, noting their attempt to deny compensation to sacked workers. The TWU, representing 60,000 members, had pushed for a maximum fine of AU$121.2 million (US$79 million), but Lee set the penalty at AU$90 million to deter future violations.
Qantas CEO Vanessa Hudson, who was the airline’s chief financial officer during the layoffs under former CEO Alan Joyce, issued a statement apologizing to the affected employees and their families. “The outsourcing decision five years ago caused genuine hardship,” Hudson said, highlighting efforts since 2023 to rebuild trust with staff and customers. However, Lee suggested the airline’s regret reflects reputational damage more than concern for workers, many of whom learned of their termination via loudspeaker announcements.
Also Read: South Korea, US Launch Ulchi Freedom Shield Amid North Korean Tensions
Of the fine, AU$50 million (US$33 million) will go to the TWU for its role in exposing Qantas’s actions, as no government agency pursued the case. The remaining AU$40 million (US$26 million) awaits a future hearing to decide its allocation, likely to further compensate workers. TWU National Secretary Michael Kaine called the ruling a historic victory, stating, “This sends a powerful message: treat workers illegally, and you’ll face accountability.” Former Qantas cleaner Anne Guirguis, with 27 years of service, celebrated the outcome as “justice for all Australian workers.”
The case adds to Qantas’s string of controversies, including a 2023 AU$120 million settlement for selling tickets on over 8,000 canceled flights, as pursued by the Australian Competition and Consumer Commission for deceptive conduct. Public sentiment on X reflects ongoing frustration with Qantas’s pandemic-era decisions, with users decrying high ticket prices and service issues. The airline, once a national icon, has faced significant backlash under Joyce’s leadership, with Hudson now tasked with restoring its reputation.
As Australia’s labor landscape evolves, this ruling sets a precedent for corporate accountability, highlighting the power of unions to challenge even the most formidable employers. The outcome not only delivers justice for the 1,820 workers but also signals to corporations nationwide that unlawful labor practices will face severe repercussions.
Also Read: MNS Alleges Vote-Buying in BEST Credit Society Election