Qantas Fined Record $58 Million for Illegal Layoffs During Pandemic
A federal court in Australia has ordered Qantas Airways 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’s labor laws and sharply exposes the airline’s legal and communication strategy.
Presiding Judge Michael Lee criticized the company’s 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’t, at least in significant part, the wrong kind of apology,” he stated.
A Landmark for Workers’ Rights
The fine represents approximately 75% of the maximum allowed by law—a decision the judge said aims to prevent such cases from being seen as merely “the cost of doing business.”
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.”
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.
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Layoffs and Initial Ruling
In 2020, amid the global health crisis, Qantas’s 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’ rights, violating Australia’s Fair Work Act.
Despite the unequivocal ruling—which included a 431-paragraph document—Qantas 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.
Criticism of Qantas’s Corporate Culture
Judge Lee also scrutinized the company’s internal culture, public relations strategy, and litigation tactics. He highlighted, for example, the decision to keep current CEO Vanessa Hudson—then the CFO—off the witness stand.
“It’s one thing for the ‘Qantas press room’ to issue statements from a CEO saying they regret what happened; it’s another for those claims of contrition and cultural change to be tested in court,” Lee emphasized.
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’s misconduct.”
Qantas’s Response
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.
Meanwhile, in the stock market, Qantas shares fell 0.4%, trading at 11.58 Australian dollars at Monday’s opening.
This historic ruling redefines the scope of labor legislation in Australia, sending a clear message to all corporations: decisions that violate workers’ fundamental rights will not go unpunished.
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