Qantas fined $75m for illegal Covid-19 sackings

Qantas Airways was ordered to pay A$90 million (S$75.2 million) for illegally sacking almost 2,000 ground workers during the Covid-19 pandemic, in a judgment that included sharp criticism of the airline's culture and raised questions about how much the company has changed.

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SYDNEY -

In a ruling on Aug 18, the Federal Court of Australia told Qantas to pay A$50 million of the penalty directly to the Transport Workers' Union (TWU), which had sued the airline over the firings.

A portion of the remainder, to be determined at a later hearing, might go to some of the 1,820 sacked workers.

The fine comes on top of a A$120 million compensation deal in 2024 for the impacted former employees.

Qantas outsourced ground-handling operations at 10 Australian airports in late 2020, under then chief executive Alan Joyce, as Covid-19 brought the airline industry to a standstill.

The TWU argued staff were axed to avoid looming negotiations over pay and conditions, and potential strikes.

Reading his hour-long judgment, Justice Michael Lee criticised the internal culture that allowed the firings to proceed.