Qantas fined record $59M for illegal outsourcing of over 1,800 ground staff

Qantas agreed to pay the fine and acknowledged its responsibility for causing hardship. Qantas Group CEO Vanessa Hudson said,

“We sincerely apologize to each and every one of the 1,820 ground-handling employees and to their families who suffered as a result. The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.”

During 2020, as international air travel nearly stopped due to COVID-19, Qantas outsourced its ground operations in what it described as a necessary cost-cutting measure. More than 1,800 workers challenged this move with TWU support. The case eventually reached Australia’s High Court, which unanimously found that Qantas had acted illegally by outsourcing these jobs—denying workers their rights under industrial law.

After losing in the High Court, Qantas returned to Federal Court seeking relief from paying compensation but was ordered instead to begin payments from the previously established fund. Of the recent penalty amount, US$32 million (A$50 million) will go directly to TWU for its role in representing affected workers.

Judge Lee questioned whether Qantas showed real remorse or was simply reacting after exhausting legal options. He criticized what he called an “unrelenting and aggressive” legal strategy aimed at avoiding compensation obligations. The TWU also condemned Qantas’ approach throughout litigation: “Qantas is only sorry now that it has to pay the largest penalty fine of any employer in Australian corporate history.”

Following this ruling, TWU called on Qantas to make further reforms including better funding for supply chain jobs at companies like Swissport—where reports have cited hundreds of monthly safety incidents along with issues related to understaffing and low wages.

In recent years, public scrutiny of Qantas increased after several scandals led former CEO Alan Joyce to resign. In 2023, after reporting record profits of US$1.6 billion (A$2.5 billion), Australia's competition regulator took action against Qantas over allegations it sold tickets for flights already canceled: https://www.bbc.com/news/world-australia-66600484

Last year, Qantas paid another US$66.1 million (A$100 million) penalty related to those ticket sales allegations and agreed on a plan compensating affected passengers: https://www.reuters.com/business/aerospace-defense/qantas-pay-a100-million-settle-cancelled-flights-lawsuit-2024-05-13/. Additionally, it was fined A$250,000 for standing down an employee who raised COVID-19 safety concerns about aircraft cleaning procedures.

Qantas operates major hubs at Brisbane Airport, Melbourne Airport and Sydney Kingsford Smith Airport; it was founded in 1920 as Australia’s national flag carrier.