SYDNEY, Australia — Qantas Airways has been fined AU$90 million (roughly ₱3.34 billion) after the airline was found guilty of illegally dismissing over 1,800 ground staff at the height of the COVID-19 pandemic. The Federal Court ruled that the airline violated industrial laws when it outsourced the roles of its in-house ground crew, replacing them with contract workers.
The penalty includes a court-ordered fine of AU$59 million, in addition to AU$78 million in compensation Qantas had already agreed to pay earlier. The total marks a historic financial reckoning for the airline and the largest penalty in Australian history related to labor law violations. The case stemmed from Qantas’ decision during the pandemic to cut labor costs amid global travel restrictions, which the court deemed unlawful.
In handing down the ruling, the presiding judge questioned the airline’s lack of remorse and transparency throughout the legal process. The Transport Workers’ Union (TWU) welcomed the verdict, stating that the fine sends a strong message to corporations that workers’ rights cannot be sidelined, even during economic or health crises.
Qantas released a public statement accepting the court’s decision and agreeing to pay the full penalty. The airline acknowledged that its actions during the pandemic caused “real harm” to its employees and said it recognizes the need to be held accountable. However, critics have noted the absence of a formal apology from company executives, even after the final ruling.
The judgment underscores the importance of lawful employment practices, particularly in times of crisis when workers are most vulnerable. The record-breaking penalty is expected to influence future corporate decisions regarding labor rights, and it reinforces the legal protections in place for Australian workers.
Source: Australian Federal Court ruling, Qantas press statement, and Transport Workers’ Union briefing (August 2025)
