{"id":177973,"date":"2025-08-18T12:00:51","date_gmt":"2025-08-18T12:00:51","guid":{"rendered":"https:\/\/aviacionaldia.com\/?p=177973"},"modified":"2025-08-18T14:34:04","modified_gmt":"2025-08-18T14:34:04","slug":"qantas-fined-record-58-million-for-illegal-layoffs-during-pandemic","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2025\/08\/qantas-fined-record-58-million-for-illegal-layoffs-during-pandemic.html","title":{"rendered":"Qantas Fined Record $58 Million for Illegal Layoffs During Pandemic"},"content":{"rendered":"\n

A federal court in Australia has ordered Qantas Airways <\/strong>to pay a record fine of 90 million Australian dollars (US$58.64 million) for illegally laying off 1,800 ground staff during the COVID-19 pandemic. The ruling, issued this Monday, marks the highest penalty ever imposed under the country\u2019s labor laws and sharply exposes the airline\u2019s legal and communication strategy.<\/p>\n\n\n\n

Presiding Judge Michael Lee criticized the company\u2019s attitude, noting that its expressions of regret appeared more tied to reputational damage than to the harm inflicted on employees. “I accept that Qantas regrets its actions, but I am not convinced that this remorse isn\u2019t, at least in significant part, the wrong kind of apology,” he stated.<\/p>\n\n\n\n

A Landmark for Workers\u2019 Rights<\/h2>\n\n\n\n

The fine represents approximately 75% of the maximum allowed by law\u2014a decision the judge said aims to prevent such cases from being seen as merely “the cost of doing business.”<\/p>\n\n\n\n

Of the 90 million Australian dollars, 50 million will go to the Transport Workers Union (TWU), which led the lawsuit against the airline. Its national secretary, Michael Kaine, hailed the verdict: “Against all odds, we stood up to a ruthless giant, and we won.”<\/p>\n\n\n\n

This ruling follows a prior settlement reached in December, where Qantas and the laid-off workers agreed to a compensation fund of 120 million Australian dollars.<\/p>\n\n\n\n

\u2192 Australian Qantas takes delivery of its first Airbus A321XLR<\/a><\/em><\/strong><\/p>\n\n\n\n

Layoffs and Initial Ruling<\/h2>\n\n\n\n

In 2020, amid the global health crisis, Qantas\u2019s senior management chose to lay off 1,820 ground staff, outsourcing their roles to contractors. While the company defended the move as strictly commercial, the Federal Court ruled in 2021 that it constituted “adverse action” against employees\u2019 rights, violating Australia\u2019s Fair Work Act.<\/p>\n\n\n\n

Despite the unequivocal ruling\u2014which included a 431-paragraph document\u2014Qantas almost immediately announced plans to appeal to the High Court. The appeal failed, and the airline responded with a statement that Judge Lee said attempted to “spin” the outcome, omitting conclusions about its unlawful conduct.<\/p>\n\n\n\n

Criticism of Qantas\u2019s Corporate Culture<\/h2>\n\n\n\n

Judge Lee also scrutinized the company\u2019s internal culture, public relations strategy, and litigation tactics. He highlighted, for example, the decision to keep current CEO Vanessa Hudson\u2014then the CFO\u2014off the witness stand.<\/p>\n\n\n\n

“It\u2019s one thing for the \u2018Qantas press room\u2019 to issue statements from a CEO saying they regret what happened; it\u2019s another for those claims of contrition and cultural change to be tested in court,” Lee emphasized.<\/p>\n\n\n\n

Josh Bornstein, a lawyer from Maurice Blackburn, which represented the union, called the fine a reflection of the scale of the harm: “This record penalty reflects the monumental scale of Qantas\u2019s misconduct.”<\/p>\n\n\n\n

Qantas\u2019s Response<\/h2>\n\n\n\n

Following the verdict, Qantas pledged to pay the fine and reiterated its apologies. “We sincerely apologize to each of the 1,820 ground staff and their families,” CEO Vanessa Hudson said in an official statement.<\/p>\n\n\n\n

Meanwhile, in the stock market, Qantas shares fell 0.4%, trading at 11.58 Australian dollars at Monday\u2019s opening.<\/p>\n\n\n\n

This historic ruling redefines the scope of labor legislation in Australia, sending a clear message to all corporations: decisions that violate workers\u2019 fundamental rights will not go unpunished.<\/p>\n\n\n\n

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