Qantas has been ordered to pay a record AU$90 million penalty for unlawfully dismissing 1,820 baggage handlers and other ground staff in 2020, taking the overall cost of its controversial outsourcing move to more than AU$200 million. The federal court decision was handed down in Sydney by Justice Michael Lee, almost a year after the airline reached a AU$120 million compensation deal with the Transport Workers’ Union (TWU) for the affected workers, according to The Guardian.
Lee described the case as “no ordinary” industrial dispute, citing Qantas’ attempts to obscure the decision-making process and the involvement of former chief executive Alan Joyce as reasons for imposing the largest penalty of its kind. He noted his hesitation over whether the airline was genuinely contrite, suggesting instead it had engaged in “performative remorse”.
Of the AU$90 million fine, AU$50 million will go directly to the TWU, with the remaining AU$40 million yet to be allocated. Lee explained that directing a significant portion of penalties to unions would encourage them to pursue potential breaches of workplace law, particularly in cases where the Fair Work Ombudsman had failed to act. “It will send a message to Qantas and other well-resourced employers that not only will they face potentially significant penalties for the breach of the act, but those penalties will be provided to trade unions to resource [them] to fulfil their statutory roles as enforcers of the act,” he said.
The ruling also criticised the conduct of Qantas throughout the drawn-out legal process. Lee highlighted the airline’s use of its public relations team to issue press releases that “spun” court outcomes in its favour, rather than focusing on legal accountability. His comments added weight to the broader criticism Qantas has faced in recent years over its corporate culture and treatment of staff.
The fine marks another damaging chapter in the airline’s turbulent recent history, which has included passenger complaints, scrutiny of executive bonuses, and government pressure over service standards. For many observers, the record penalty underscores the reputational and financial toll of Qantas’s outsourcing strategy, and serves as a warning to other large employers.
