Qantas has been fined $90 million for unlawfully terminating 1,820 baggage handlers and ground staff in 2020, bringing the total cost of its controversial outsourcing decision to over $200 million. Justice Michael Lee issued the penalty decision on Monday, following Qantas and the Transport Workers’ Union’s agreement in March 2023 that the airline would pay $120 million in compensation to the affected workers.
Reading his judgement in the Federal Court in Sydney, Lee stated that the $90 million penalty was just under 75% of the maximum possible fine. The Financial Review reported that $50 million of the penalty would be awarded to the Transport Workers’ Union (TWU) while the distribution of the remaining $40 million was to be determined.
Lee also expressed reservations about whether Qantas was genuinely remorseful, stating that any regret shown by the company seemed driven by the negative impact on its reputation rather than concern for the workers’ welfare. Qantas had argued for a penalty between $40 million and $80 million, while the TWU had called for the maximum possible fine of $121 million.
The legal battle between the TWU and Qantas began in 2019 and centred on the claim that the airline’s decision to outsource the jobs was motivated by the fact that many of the workers were union members with stronger bargaining rights. The Federal Court upheld this claim in 2022, ruling that Qantas had breached the Fair Work Act.
Source: https://www.theguardian.com/australia-news/2025/aug/18/qantas-fine-90m-illegally-sacking-ground-staff-transport-workers-union-covid-federal-court
