In a landmark ruling, Australia's Federal Court has slapped Qantas Airways with a staggering A$250 million (£130 million) fine for illegally sacking nearly 1,700 ground staff during the COVID-19 pandemic.
The court found that the national carrier breached workplace laws when it outsourced its ground operations in 2020, a move that affected baggage handlers, cleaners and other airport workers across 10 Australian airports.
Record Penalty for Worker Exploitation
Justice Michael Lee described Qantas's actions as "a serious breach of the Fair Work Act" that had devastating consequences for employees during an already challenging period. The penalty sets a new record for workplace law violations in Australia.
"These workers were callously discarded at a time when alternative employment opportunities were scarce due to pandemic restrictions," Justice Lee remarked in his judgment.
Union Hails Victory for Workers
The Transport Workers Union (TWU), which brought the case against Qantas, welcomed the decision as a triumph for workers' rights. TWU National Secretary Michael Kaine stated: "This judgment sends a clear message that corporations can't use crises like COVID-19 to undermine worker protections."
The outsourcing decision came despite Qantas receiving over A$2 billion in government wage subsidies and other pandemic support measures designed to protect jobs.
Qantas Response and Fallout
Qantas acknowledged the court's decision, with CEO Vanessa Hudson expressing regret: "We deeply apologise to those employees impacted by our decision during an incredibly difficult time for our company and our country."
The airline faces additional financial pressure as it continues recovery from pandemic losses, with shares dropping 3.5% following the verdict.
Legal experts suggest this case may set a precedent for how companies approach workforce restructuring during future economic crises.
