Australian flag carrier Qantas has been slapped with a record Aus$90 million (about Ksh.7.6 billion) fine for illegally laying off 1,800 ground staff during the Covid-19 pandemic, closing a five-year legal battle that has tarnished the airline’s reputation.
Federal Court Justice Michael Lee handed down the penalty on Monday, stressing it should serve as “real deterrence” for companies tempted to put profits above employment rights. The court found that Qantas’ 2020 decision to sack workers and outsource their jobs, at a time when Australia was in strict lockdown and vaccines were unavailable, unlawfully stripped staff of their rights to collective bargaining and industrial action.
Qantas lost an appeal against the ruling and has since faced mounting criticism over its handling of staff, soaring ticket prices, and service complaints.
Chief executive Vanessa Hudson, who took over in 2023 after the early exit of long-serving boss Alan Joyce, accepted the ruling and issued an apology.
“The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families,” Hudson said. “We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.”
The court directed that Aus$50 million of the penalty be paid to the Transport Workers’ Union (TWU) and Aus$40 million set aside for future payments to former employees. This comes on top of the Aus$120 million compensation package Qantas agreed to last year.
Union officials hailed the outcome as a landmark victory. TWU National Secretary Michael Kaine said the ruling marked the “final win” for workers who had been “illegally outsourced, many learning of their dismissal over a loudspeaker in the lunch room.”
Former employee Anne Guirguis, who had worked at Qantas for 27 years, welcomed the decision. “It has been five long years. Today is a victory, not just for our colleagues but for all Australian workers. We can close this chapter and move on now,” she told reporters outside court.
The 104-year-old airline, long branded the “Spirit of Australia,” has been working to rebuild trust with customers and staff. Hudson said improving service standards and restoring confidence remained Qantas’ “highest priority” as it seeks to repair its battered image.
Written By Rodney Mbua
