Qantas has been ordered to pay a $90 million fine for unlawfully sacking workers during the pandemic.
The Transport Workers Union (TWU) launched legal action against the airline after it fired 1,820 baggage handlers in 2020.
The TWU successfully argued that the move was a breach of workers’ legal rights. Qantas failed to appeal the decision twice, in 2021 and 2023.
In December, the airline agreed to pay $120 million to compensate staff.
Today, it was handed an additional penalty in the Federal Court.
Background
Qantas sacked 1,800 airport staff and outsourced their work to contractors in late 2020. The airline said it was “bleeding cash” at the time due to the pandemic.
The TWU, which represents many of the staff, argued the decision breached workers’ legal rights.
Workers have a right to approved forms of industrial action, such as strikes.
The TWU argued Qantas deliberately and illegally sacked the workers at a time when they could not take action. In 2021, a Federal Court judge agreed.
Appeals
Qantas appealed to the full Federal Court, where three judges also sided in the TWU’s favour.
The airline then appealed to the High Court, Australia’s highest legal authority and final place of appeal.
In 2023, the Court unanimously agreed Qantas’ appeal should be dismissed.
Employees
In October 2024, the Federal Court ordered Qantas to compensate three former employees a total of $170,000.
The court found Qantas should compensate the workers for lost wages and “non-economic losses,” including the “distress, hurt, humiliation or other emotional harm” they experienced after being fired.
It was the first compensation decision in the long-running unfair dismissal case, and was considered a “test case” for the other affected former employees.
Following the Federal Court decision, the airline negotiated a settlement with the TWU.
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In December 2024, Qantas agreed to pay $120 million to compensate the workers impacted by its 2020 dismissal decision.
The carrier confirmed it would begin paying compensation “directly to the former employees” from early 2025.
“Final compensation amounts will cover both economic and non-economic loss, [and] compensation to the TWU,” Qantas said.
Penalty
Federal Court Justice Michael Lee has now ordered Qantas to pay a $90 million penalty for illegally sacking its workers.
It comes eight months after Qantas agreed to a $120 million settlement. This new penalty is in addition to the compensation payments.
Justice Lee accused Qantas of being “the wrong kind of sorry,” and suggested the remorse it has shown “more likely reflects the damage this case has done... rather than unique remorse for the damage done to the affected workers”.
Union
Federal Court Justice Michael Lee has now ordered Qantas to pay a $90 million penalty for illegally sacking its workers.
It comes eight months after Qantas agreed to a $120 million settlement. This new penalty is in addition to the compensation payments.
Justice Lee accused Qantas of being “the wrong kind of sorry,” and suggested the remorse it has shown “more likely reflects the damage this case has done... rather than unique remorse for the damage done to the affected workers”.
Qantas
A statement from Qantas said: “Today’s judgment holds us accountable for our actions that caused real harm to our employees.”
Qantas CEO Vanessa Hudson said the airline apologises to “each and every one” of the 1,820 sacked workers and their families.
“Over the past 18 months, we’ve worked hard to change the way we operate... to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost,” Hudson said.
Next steps
Qantas said it accepts the Federal Court’s decision.
“The $90 million penalty will be paid in accordance with the orders of the Court.”
The airline noted it has made a $120 million payment into a compensation fund for “all affected former employees”.
This fund is being managed and administered by Maurice Blackburn, the law firm representing the workers.
