Qantas Fined Record A$90 Million Over Illegal Pandemic Sackings

Qantas has been ordered to pay a record A$90 million fine after the Federal Court found the airline unlawfully outsourced 1,820 ground staff during the COVID-19 pandemic in breach of the Fair Work Act.

Justice Michael Lee, who handed down the penalty, said Qantas had shown “the wrong kind of sorry”, criticizing the airline for focusing more on protecting its reputation than demonstrating genuine remorse to the workers who lost their jobs.

The fine is the largest industrial relations penalty in Australian history. Of the total, A$50 million will go to the Transport Workers’ Union (TWU) to fund future enforcement of workers’ rights. The allocation of the remaining A$40 million will be decided at a later stage, with unions calling for it to be directed to the sacked employees.

This penalty comes in addition to the A$120 million compensation package Qantas had previously agreed to pay affected staff. Many of the former workers, most of them over 50, said the unlawful outsourcing had left them struggling to find new employment.

TWU National Secretary Michael Kaine hailed the ruling as a “David versus Goliath victory”, calling it the most significant industrial outcome in Australia’s history. “It sends a clear message that companies cannot simply discard loyal workers for corporate convenience,” he said.

Despite the ruling, Qantas remains financially strong, having reported a A$2.1 billion pre-tax profit in 2024. However, the decision adds fresh pressure on the airline’s management, which has already faced public criticism over service disruptions, executive pay, and handling of customer refunds during the pandemic.

For many of the workers affected, the fine represents long-awaited justice. As one former staff member put it: “We gave Qantas decades of service. To be treated this way was devastating. Today, at least, we feel heard.”