Qantas fined $59 million for illegally firing 1,800 workers during pandemic

August 18, 2025

Sydney, August 18: Australian flag carrier Qantas Airways has been fined a record-breaking Qantas A$90 million (US$59 million) after the Federal Court ruled that it unlawfully fired more than 1,800 ground handling staff during the COVID-19 pandemic.

The fine is the largest ever imposed on an employer in Australian history, marking a landmark moment in the enforcement of Australian labour law.

Federal Court Justice Michael Lee, who delivered the ruling, sharply criticised the role played by former Qantas CEO Alan Joyce in the decision to outsource jobs in 2020. The judge commented on Joyce’s “centrality in the decision-making processes” and expressed unease about Joyce’s indirect role in the outsourcing, saying it left him with a “sense of unease and uncertainty” about how the decision was handled at the highest levels of the company.

Joyce, who resigned in September 2023, defended his cost-cutting strategy at an industry conference last week. “At one point, Quantas was just 11 weeks away from running out of cash. It’s not a buffer; it’s going into the abyss,” he said. “But we didn’t fall. We made tough and painful decisions.”

However, the Federal Court ruled that the layoffs were unlawful under Australian workplace laws. As part of the fine, $50 million is to be paid directly to the Transport Workers Union (TWU), which brought the case against the airline.

In response to the decision, current Qantas Group CEO Vanessa Hudson issued an apology, saying:

“We sincerely apologize to each of the 1,820 ground handling employees and their families who suffered as a result.”

The airline accepted the court’s findings and said it was committed to rebuilding trust with its employees and the public.

This landmark decision sends a strong message to corporate Australia about the importance of treating workers fairly, especially during times of crisis.