An Australian court has fined Qantas Aus$90 million (US$59 million) for illegally dismissing 1,800 ground staff during the Covid-19 pandemic, concluding a five-year legal battle over workers’ rights.

Federal Court Justice Michael Lee said the penalty should serve as a “real deterrent” for companies tempted to violate employment laws for financial gain. The layoffs took place in August 2020, when strict lockdowns and border closures were in force and vaccines were not yet available. Qantas outsourced these roles despite what it claimed were “commercial imperatives.”

Australia’s Federal Court previously ruled that Qantas acted unlawfully by preventing employees from exercising their rights to collective bargaining and industrial action. The airline later lost its appeal against this decision.

Once known as the “Spirit of Australia,” Qantas has struggled to repair its reputation following these illegal sackings, rising ticket prices, poor service complaints, and accusations of selling seats on cancelled flights.

Under the ruling, Qantas will pay Aus$50 million to the Transport Workers Union and Aus$40 million will be set aside for future payments to the affected employees. This penalty is in addition to the Aus$120 million compensation package the airline agreed to last year.

Qantas’ current CEO Vanessa Hudson, who took over in 2023 from Alan Joyce, has pledged to improve customer satisfaction and rebuild trust. Joyce stepped down early after facing criticism over the company’s actions, despite posting record profits for shareholders.

“This is a victory, not just for our colleagues but for all Australian workers,” said Anne Guirguis, a former employee who worked for Qantas for 27 years before being laid off.

Transport Workers’ Union National Secretary Michael Kaine called it a “final win” for employees, highlighting that Qantas had shown no remorse when workers were dismissed, many learning about job losses through loudspeaker announcements. “Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history,” Kaine said.