Qantas Hit with $90 Million Fine Over Unlawful Staff Sackings

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Qantas has been hit with a massive $90 million fine – the biggest of its kind in Australian history – after the Federal Court found the airline illegally sacked more than 1,800 ground staff back in 2020.

At the height of the pandemic, Qantas outsourced baggage handlers, cleaners and ground staff. The court later ruled it wasn’t just a cost-cutting move – it was also aimed at weakening the bargaining power of unions during wage negotiations.

Qantas fought the decision all the way to the High Court but lost, clearing the way for this penalty.

The Transport Workers Union (TWU), which ran the case, wanted the maximum fine of $121 million. Qantas, meanwhile, argued for something much lower, between $40 and $80 million. In the end, Justice Michael Lee settled on $90 million, describing the case as the largest of its kind and stressing the need to send a strong message to other companies.

Half of that fine – $50 million – will go directly to the TWU.

Justice Lee didn’t mince words, either. He said: “To deprive someone of work illegally is to deprive someone of an aspect of their human dignity, and this is not assuaged simply by expressions of regret.” He criticised Qantas for trying to paint a “less than candid” picture of its outsourcing decision in court, and for initially refusing to offer compensation to the affected workers despite its public apology.

On top of the $90 million penalty, Qantas has already agreed to pay $120 million in compensation to workers for their financial losses and emotional suffering – though Justice Lee questioned whether those payments would actually be made in full.

The ruling was met with cheers and hugs in the courtroom, with union members calling it a landmark win.

This is just the latest in a string of scandals for Qantas. The airline was also fined $100 million after the competition watchdog found it had been selling tickets for flights it had already cancelled – a practice that went on for years.

Notably, Qantas only started publicly taking responsibility for its actions in 2023 – the same year long-serving CEO Alan Joyce stepped down.

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