Qantas Fined $90 Million for Illegal Outsourcing of Ground Handling Workforce
Australian airline Qantas has been ordered to pay a $90 million penalty by the Federal Court for illegally outsourcing over 1,800 ground handling jobs during the COVID-19 pandemic.
Federal Court Justice Michael Lee imposed the fine, noting that it should “bear some resemblance” to the maximum penalty of $121 million.
The court ordered $50 million of the penalty to be paid to the Transport Workers Union (TWU), with the remaining $40 million to be determined at a later hearing.
Background of the Case
In 2020, Qantas made the decision to outsource its ground handling workforce, which was later deemed illegal by the Federal Court.
The TWU had sought a maximum penalty of $121 million, in addition to the $120 million in compensation owed to affected employees.
Qantas’ Response and the Court’s Decision
Qantas had argued for a mid-range penalty between $40 million and $80 million.
However, Justice Lee expressed concerns about the airline’s lack of contrition, stating that Qantas had shown the “wrong kind of sorry” by prioritising the impact on the company over the affected workers.
The court also noted that Qantas’ chief people officer, Catherine Walsh, had apologised for the company’s behaviour, but her evidence was not supplemented by senior management, leaving doubts about the genuineness of the apology.
Justice Lee stated that the airline’s strategy suggested an industrial relations culture with deep roots, which has only recently begun to change.
Reactions to the Decision
Maurice Blackburn Lawyers principal Josh Bornstein described the penalty as a “record-breaking” amount, demonstrating that courts will not tolerate blatant attacks on workers’ rights.
He noted that Qantas, under former CEO Alan Joyce’s leadership, had executed a “carefully planned and executed union-busting operation” during the pandemic.
TWU national secretary Michael Kaine praised the decision, stating that it marks a “final win” for the affected workers and a message to corporate Australia that workers will stand up for their rights.
Labor senator Tony Sheldon noted that Qantas has faced three major legal defeats in recent years, highlighting a “deeply damning pattern” of behaviour.