In a landmark ruling, Australia’s Federal Court has ordered Qantas Airways to pay a fine of $58.64 million for illegally terminating 1,800 ground staff during the COVID-19 pandemic. The case, brought forward by the Transport Workers’ Union (TWU), marks one of the heaviest penalties ever imposed under the country’s labour laws.
The controversy dates back to 2021, when the court found that Qantas had breached the Fair Work Act by preventing employees from exercising their workplace rights and unionising. While the airline insisted the sackings were a commercial decision, the court ruled that the process lacked fairness and adequate justification. Employees were dismissed without notice periods or proper compensation, prompting TWU to take legal action.
Judge Michael Lee observed that Qantas showed little genuine remorse, noting that the company’s regret seemed rooted more in reputational damage than concern for the workers who lost their livelihoods. The ruling also directs that A$50 million from the fine be awarded to TWU, which spearheaded the case.
The airline has been instructed to compensate the affected employees for the financial and emotional distress caused by the mass layoffs.
Qantas CEO Vanessa Hudson issued an apology following the judgment, stating:
“We sincerely apologise to each and every one of the 1,820 ground-handling employees and to their families.”
The ruling underscores growing scrutiny of corporate accountability in Australia, especially in cases where cost-cutting measures come at the expense of employee rights.
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