Qantas has been ordered to pay the largest industrial relations penalty in Australian corporate history after unlawfully outsourcing nearly 2,000 jobs during the coronavirus pandemic, according to reporting by the Financial Times.
The Federal Court imposed a fine of A$90mn (US$59mn) on the airline after finding it had breached workplace laws when it terminated 1,820 ground staff roles in 2020, including baggage handlers and cleaners, and contracted the work out.
Justice Michael Lee, who handed down the penalty on Monday, criticised Qantas for its conduct during the drawn-out legal battle and questioned the sincerity of its apology. He noted that while the airline had expressed regret, its public statements, opposition to compensation claims, and the failure of chief executive Vanessa Hudson to attend court undermined its contrition.
“It goes too far to conclude that Qantas is simply like Tartuffe, pleading virtue only when cornered and feigning contrition while harbouring no genuine regret,” Lee said, citing Molière’s 1664 play. He added that remorse within Qantas appeared more linked to reputational damage than genuine accountability.
The ruling comes after a chaotic period for Australia’s flag carrier, which has faced operational and cultural challenges as travel demand rebounded post-pandemic. Qantas had unsuccessfully appealed the original 2021 decision and had argued for a reduced penalty.
The airline has already agreed to a A$120mn compensation package for the dismissed employees. In a statement, Hudson said the outsourcing had caused “real harm” and “genuine hardship” for many staff and their families, admitting the decision had wider impacts across the company.
Of the A$90mn penalty, A$50mn will go to the Transport Workers’ Union (TWU), which brought the case, while the allocation of the remaining A$40mn will be determined at a later hearing. The TWU has urged that the funds be distributed directly to the affected workers.
Michael Kaine, the union’s national secretary, said the record penalty was a victory for those who had been “callously” treated. “They weren’t just sacked, they were told by Qantas that they were delusional for questioning it,” he said. “This ruthless, self-interested and illegal calculation to kick them to the kerb has rightfully merited the largest ever penalty of its kind.”
