"Record Labor Law Breach" Leads to $81 Million Fine... Airline Dismissed 1,800 Employees

Qantas Fined for Firing 1,820 Employees in 2020
Court: "The Largest Labor Law Breach in Australian History"

Australia's largest airline, Qantas, has been fined 90 million Australian dollars (approximately 81.2 billion KRW) for illegally dismissing more than 1,800 employees during the COVID-19 pandemic.

Australia's largest airline Qantas was fined 90 million Australian dollars (approximately 81.2 billion KRW) for illegally dismissing about 1,800 employees during the COVID-19 pandemic. Photo by Getty Images

According to foreign media reports on August 18 (local time), the Federal Court of Australia ruled that Qantas violated labor laws by dismissing 1,820 ground staff in 2020 and transferring their work to contractors, thereby infringing on employees' rights such as union formation. Federal Court Judge Michael Lee described this case as "the largest and most significant breach of labor law in Australia's 120-year history."

In particular, the court noted that Qantas's illegal actions would not have been exposed if the Transport Workers' Union had not filed the lawsuit, and ordered that 50 million Australian dollars (approximately 45.2 billion KRW) of the fine be paid to the union. The use of the remaining 40 million Australian dollars (approximately 36.1 billion KRW) will be determined in a future hearing, with the possibility that it may be distributed to the dismissed employees.

Qantas Airways passenger plane. Photo by AP Yonhap News

Previously, at the end of 2020, Qantas outsourced ground operations at airports across Australia and dismissed the staff responsible for those duties. In response, the Transport Workers' Union filed a lawsuit, claiming that Qantas had unfairly dismissed employees to avoid negotiations over wages and working conditions. Qantas argued in 2023 that the mass layoffs were an unavoidable restructuring due to the deterioration of business caused by COVID-19, but the court rejected this argument and confirmed the actions as illegal.

Regarding the court's decision, Qantas CEO Vanessa Hudson issued a statement saying, "The decision to outsource, made five years ago during a particularly uncertain time, caused real pain for many former employees and their families," and added, "I sincerely apologize to each of the 1,820 ground operations staff and their families."