Australia’s flagship carrier, Qantas Airways, has been fined a hefty sum of AUD 90 million ($59 million) by the Federal Court of Australia for illegally outsourcing more than 1,800 ground staff roles during the COVID-19 pandemic, marking the largest breach of workplace laws in the nation’s history.

The ruling adds to the AUD 120 million ($78 million) compensation the airline had already agreed to pay in December, after the High Court unanimously rejected Qantas’ appeal and confirmed that the outsourcing of baggage handlers and cleaners in 2020 was unlawful.

Judge Criticises Qantas Approach

Justice Michael Lee said the scale of the breach was unpardonable in the airline’s 120-year history. He reprimanded Qantas’ conduct, further questioning the sincerity of its apology and highlighting its aggressive legal tactics.

“Qantas executives had projected annual savings of AUD 125 million from outsourcing these jobs,” Lee said, noting that the airline initially fought against paying compensation despite publicly expressing regret. “The company’s remorse showcases an act of covering up for reputational damage rather than genuine concern for its workers.”

The court held that a minimum fine of AUD 90 million was necessary to discourage similar corporate behaviour in the future. The Transport Workers Union (TWU), which launched the legal challenge, had pushed for the maximum penalty of AUD 121 million.

TWU Wins the Five-Year Battle

The Transport Workers Union (TWU) described the decision as a long-awaited moment for Australian industrial relations.
“This is the most significant industrial outcome in Australia’s history,” said Michael Kaine, TWU national secretary. “It sends a clear message that no employer is above the law.”

“After five long years, today’s ruling is a victory — not just for us, but for all Australian workers,” said Anne Guirguis, a former Qantas aircraft cleaner who spent 27 years at the airline before being laid off.

The case concludes a five-year legal battle in which the union took on one of Australia’s most powerful companies, a contest many had expected Qantas to win.

The Qantas Apology

Qantas chief executive Vanessa Hudson, who served as chief financial officer during the layoffs, apologised following the ruling.
“We sincerely apologise to the 1,820 employees and their families who suffered as a result. The decision to outsource during such uncertain times caused genuine hardship,” Hudson said.

Broader Reputation Setbacks

The penalty compounds a difficult period for Qantas. In 2023, the airline agreed to pay AUD 120 million ($78 million) after being sued by the competition regulator for selling tickets on more than 8,000 cancelled flights.

A further hearing will decide how the remaining AUD 40 million ($26 million) from Monday’s fine will be allocated.

For Qantas, the judgment is an example of another major reputational blow, while for its former workers, it’s definitely a rare moment of justice delayed yet served right.