An Australian federal court has imposed a record A$90 million ($59 million) penalty on Qantas for illegally outsourcing 1,830 ground staff positions during the COVID-19 pandemic. The landmark ruling marks the largest workplace law violation fine in Australian history and concludes a five-year legal battle initiated by the Transport Workers’ Union (TWU).

Federal Court Justice Michael Lee described the 2020 layoffs as causing “real harm” to employees during an already uncertain period, ordering Qantas to pay A$50 million directly to the TWU. The judge criticized the airline’s “unrelenting and aggressive” legal strategy despite public apologies, questioning the sincerity of its remorse. The penalty approaches the maximum allowed under Australia’s Fair Work Act.

The outsourcing decision, which Qantas initially defended as a necessary cost-cutting measure during aviation’s pandemic shutdown, was found in 2021 to have been partly motivated by preventing potential industrial action. The ruling compounds Qantas’ recent troubles, coming just a year after it paid A$100 million for selling tickets on canceled flights.

While Qantas CEO Vanessa Hudson issued a fresh apology, employment law experts note the total A$210 million in penalties (including earlier worker compensation) may still represent cost savings compared to maintaining the workforce. “If not seen as sufficient deterrence, government may face calls to increase penalties,” warned Clayton Utz’s Dan Trindade.

The case sets a precedent for corporate accountability in Australia’s industrial relations system, with Justice Lee explicitly intending the penalty to deter other large employers from similar conduct. For the TWU, the verdict represents hard-won justice for workers who lost jobs while Qantas received significant government pandemic subsidies. The airline says it has reformed its workplace practices since the controversial 2020 decisions.

Source: BBC.