Court Orders Qantas to Pay US$59M Over Pandemic Job Cuts

Australia’s flag carrier Qantas, once praised as the spirit of the nation, now faces one of the harshest financial penalties ever handed down under the country’s workplace laws.

After years of legal battles and emotional testimonies, the Federal Court has ruled that Qantas must pay a massive fine for unlawfully sacking more than 1,800 ground staff at the height of the COVID-19 pandemic.

Court’s Landmark Penalty

On Monday, Federal Court Justice Michael Lee ruled that the fine must “bear some resemblance” to the maximum penalty of A$121 million, ordering a sum no less than A$90 million. According to the reports from Reuters.

Of this amount, A$50 million is to be paid directly to the Transport Workers’ Union (TWU), the body that spearheaded the legal battle against the airline. The remaining A$40 million will be allocated later, with the court yet to decide whether it will go directly to affected workers.

The penalty comes on top of the A$120 million in compensation that Qantas has already agreed to pay former employees, bringing the company’s total payout close to a quarter of a billion dollars.

The Illegal Outsourcing Decision

The penalty stems from Qantas’s 2020 decision to outsource ground handling operations, which saw 1,820 employees — including baggage handlers, cleaners, and support staff — lose their jobs.

At the time, Qantas argued the move was necessary to safeguard the airline’s future as the global aviation industry collapsed under the weight of the pandemic.

But the courts later found the outsourcing was illegal, ruling it was a direct attempt to sideline the union and deny workers their rights.

Voices of Workers and Leadership

For former employees, the ruling marks the end of a painful chapter. “It has been five long years. Today is a victory, not just for our colleagues but for all Australian workers,” said Anne Guirguis, who worked at Qantas for 27 years cleaning aircraft before being laid off.

Qantas Group Chief Executive Vanessa Hudson issued an apology, admitting the outsourcing decision had caused “genuine hardship” to thousands of workers and their families.

“We sincerely apologise to each and every one of the 1,820 ground handling employees and their families who suffered as a result,” she said.

A Turning Point for Workers’ Rights

Beyond the fine itself, the ruling is being hailed as a landmark victory for workers’ rights in Australia. For the TWU and its members, it serves as proof that even the country’s biggest corporations can be held accountable when they act outside the law.