Australia’s national carrier, Qantas, is once again in the spotlight—and not for the right reasons. The airline, once a symbol of national pride, is now facing the possibility of a record-breaking $121 million fine after a Federal Court found it illegally sacked 1,800 ground staff during the height of the COVID-19 pandemic.
The Transport Workers Union (TWU) is pushing for the maximum penalty, arguing that only a hefty fine will send a clear message to big business: Australian workers are not expendable.
But what does this mean for everyday Australians, especially those of us who have spent decades in the workforce and know all too well the value of job security? Let’s break down what’s happened, why it matters, and what it could mean for the future of workers’ rights in Australia.
The saga began in 2020, when Qantas, reeling from the pandemic’s impact on travel, made the controversial decision to outsource nearly 2,000 ground handling jobs. The move was met with outrage from employees and unions, who argued it was a blatant attempt to sidestep collective bargaining rights and protected industrial action.
The TWU took the fight to the Federal Court, which found Qantas had breached the Fair Work Act. Qantas appealed all the way to the High Court, but the verdict was unanimous: the airline had acted unlawfully.
In October last year, Justice Michael Lee ordered Qantas to pay $120 million in compensation to affected workers for their economic loss, pain, and suffering. Now, the TWU is seeking an additional $121 million in penalties, the maximum allowed, to ensure Qantas—and other companies—think twice before making similar moves.
TWU national secretary Michael Kaine has been vocal about the need for a strong response. ‘We have to send a very strong, clear signal to Qantas and every other company in Australia that this can never, ever happen again to any Australian worker,’ he said outside the court.
For many of the sacked workers, the fallout has been devastating. Former Qantas employee Anne Guirguis, who spent 28 years with the airline, described the impact: ‘I’ve got colleagues that have lost houses and have been divorced, it’s changed their world.’ Another former worker, Tony Hayes, summed up the sentiment: ‘We just want it to go away, but we want them to pay.’
In court, Qantas chief people officer Catherine Walsh expressed regret, saying, ‘We are very sorry.’ She pointed to the size of the compensation payment as evidence of the airline’s contrition. But the TWU isn’t convinced, arguing that Qantas only apologised ‘at two minutes to midnight’ in an attempt to secure a lighter penalty.
Compensation payments are set to begin flowing to workers by the end of May, with a base payment of $10,000 for all affected staff. But for many, no amount of money can undo the emotional and financial damage caused by the sudden loss of employment.
Justice Lee was scheduled to begin hearing final arguments from the legal teams representing Qantas and the TWU on Monday afternoon. He is expected to rule on Qantas’ penalty after three days of hearings, which began in the Federal Court in Sydney on Monday.
As the legal proceedings draw closer to a resolution, many Australians are watching closely to see what message this case will send about corporate accountability and workers’ rights.
What are your thoughts on the case so far? Do you think the courts should impose the maximum penalty? Share your thoughts and experiences in the comments below.
Also read: Qantas just launched one-week-only deals on Asian getaways starting at $517
