Australian airline Qantas has been fined Aus$90 million (about sh.7.6 billion) by the Federal Court for illegally laying off 1,800 ground staff during the Covid-19 pandemic, bringing to a close a five-year legal battle over workers’ rights.

Delivering the ruling on Monday, Justice Michael Lee said the penalty was intended to serve as a “real deterrence” to other firms that might be tempted by the financial gains of breaching employment law.

Qantas sacked the ground handling staff in August 2020 at the height of lockdowns and border closures, outsourcing the jobs when vaccines were not yet available. The court later found the decision unlawful, ruling that the airline’s actions blocked workers from exercising their rights to collective bargaining and industrial action. An appeal by Qantas was dismissed.

Long known as the “Spirit of Australia,” the 104-year-old carrier has been battling to rebuild its reputation after years of controversies ranging from soaring ticket prices and customer service complaints to revelations it sold tickets for flights already cancelled.

The fallout from the illegal sackings intensified scrutiny of former chief executive Alan Joyce, who stepped down in 2023 amid growing criticism despite delivering strong profits for shareholders. His successor, Vanessa Hudson, promised to rebuild trust and put customer service at the center of Qantas’ recovery.

“The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families,” Hudson admitted in a statement. She issued a “sincere apology” to the 1,820 ground handling employees affected and pledged that restoring trust remained Qantas’ top priority.

The court ordered the fine to be split, with Aus$50 million paid to the Transport Workers Union (TWU) and Aus$40 million set aside for future payments to the sacked employees. The penalty comes on top of Aus$120 million in compensation Qantas agreed to pay its former staff last year.

Outside the court, former Qantas worker Anne Guirguis, who had spent 27 years cleaning aircraft before losing her job, welcomed the ruling. “It has been five long years. Today is a victory, not just for our colleagues but for all Australian workers,” she said.

TWU National Secretary Michael Kaine described the judgment as “a final win” for workers, noting the airline’s apology only came after it was forced to pay what he called the largest employer penalty in Australian corporate history.