Court fines Qantas $59m for sacking 1,800 workers

An Australian court, on Monday, August 18, 2025, fined Qantas Aus$90 million (US$59 million) for illegally laying off 1,800 ground staff during the Covid-19 pandemic.

Federal Court Justice Michael Lee said he wanted the penalty to be a “real deterrence” to firms that might be tempted by the financial rewards of breaching employment law.

Qantas decided to sack the workers and outsource their jobs in August 2020, a period of lockdowns and border closures when no Covid-19 vaccine was widely available.

Australia’s Federal Court subsequently found that Qantas had acted illegally despite its stated “commercial imperatives” because it prevented staff from accessing their rights to collectively bargain or take industrial action.

It later dismissed an appeal by the airline.

Long-dubbed the “Spirit of Australia”, 104-year-old Qantas has been on a mission to repair its reputation, which was hit in recent years by the illegal sackings, soaring ticket prices, claims of sloppy service, and the selling of seats on already-cancelled flights.

Qantas chief executive Vanessa Hudson took over in 2023, promising to improve customer satisfaction.

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She replaced Alan Joyce, who stepped down earlier than planned as Qantas endured criticism over its treatment of workers and passengers, despite delivering bumper profits for shareholders.

Qantas said it accepted the penalty.

Hudson said: “The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.

“We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.”

Qantas had worked for 18 months to change the way it works and “rebuild trust”, the airline boss added.

“This remains our highest priority as we work to earn back the trust we lost,” Hudson told AFP.

Qantas’ fine is to be paid in two parts, the court said, with Aus$50 million going to the Transport Workers Union and Aus$40 million being held for future payments to the former workers.

The penalty is in addition to a compensation payment of Aus$120 million for affected former employees that Qantas agreed to last year.

The Star