• Qantas fined A$90 million for illegally sacking 1,800 ground workers during the COVID-19 pandemic.
• The penalty is the largest ever imposed on a company in Australia’s labor law history.
• Federal Court Judge Michael Lee emphasized the need for strong deterrents against such corporate misconduct.
• A$50 million of the fine will go directly to the Transport Workers' Union, which initiated the case.
• Qantas previously agreed to pay A$120 million in compensation to affected workers, reinforcing its financial accountability.

An Australian court has imposed a hefty A$90 million (approximately $59 million) fine on Qantas Airways for illegally dismissing around 1,800 ground staff during the early stages of the COVID-19 pandemic. This ruling, announced by Federal Court Justice Michael Lee, is regarded as a landmark decision in the history of Australia's labor laws, marking the most substantial penalty levied against a company for such violations, according to BBC, Reuters, Channel News Asia, and India Times.

Justice Lee stated that the penalty aims to deter similar corporate misconduct, insisting it should not be seen merely as an acceptable cost of doing business. "I want to send a clear message to firms that they will be held accountable for breaching employment laws," he remarked. The airline's actions were deemed to have prevented workers from exercising their rights to collective bargaining or industrial action during the 2020 crisis, thus violating Australia’s Fair Work Act, according to Reuters, Channel News Asia, and India Times.

In the ruling, it was determined that A$50 million of the penalty will be paid directly to the Transport Workers' Union (TWU) for its role in bringing the case against Qantas. The TWU described the ruling as a significant victory and a landmark outcome for labor rights in Australia. Michael Kaine, the TWU National Secretary, emphasized that this case has serious implications for future employer conduct, framing it as a clear message against illegal treatment of workers, noted by BBC and India Times.

Qantas, which has been under heavy scrutiny over its treatment of both employees and passengers since the pandemic began, acknowledged the penalty and conveyed its apologies to the affected workers. CEO Vanessa Hudson stated, "The decision to outsource caused genuine hardship for many of our former team and their families," reflecting on the broader repercussions of their business decisions. This decision follows a previous agreement for Qantas to pay AU$120 million in compensation to the affected employees, indicating the company's substantial financial obligations stemming from these labor violations, as reported by Reuters and Channel News Asia.