Qantas Fined $59M Over Illegal COVID-Era Job Outsourcing
The Federal Court of Australia has fined Qantas AUD90 million (USD58.6 million) for illegally outsourcing 1,820 ground handling jobs during the COVID-19 pandemic. The penalty comes in addition to the AUD120 million (USD78.1 million) settlement the airline agreed to pay in December 2024 to compensate affected workers.
Justice Michael Lee directed that AUD50 million (USD32.6 million) be paid to the Transport Workers’ Union (TWU), which represented the dismissed employees. The distribution of the remaining AUD40 million (USD26 million) will be determined at a later hearing, given competing claims between the union and individual workers.
The TWU sought the maximum fine of AUD121.2 million (USD78.8 million), while Qantas argued for a penalty between AUD40 million and AUD80 million. Justice Lee said the fine needed to be substantial and closely aligned with the maximum allowed to ensure a strong deterrence effect.
The ruling addressed penalties for actions already found unlawful in 2021, when the court determined that Qantas violated the Fair Work Act (2009) by outsourcing ground handling at 10 airports and terminating more than 1,800 staff. After failed mediation efforts, Qantas eventually agreed to the settlement but admitted no wrongdoing.
In response to the latest judgment, Qantas said it accepted the decision and apologized. CEO Vanessa Hudson acknowledged the harm caused to employees and pledged operational changes.
The court noted concerns about Qantas’ opaque decision-making in 2020 but stopped short of assigning personal accountability. Former CEO Alan Joyce, who led the airline during the pandemic, recently commented publicly on the case but avoided direct responsibility.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com