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Qantas Ordered to Pay Record A$90 Million for Illegal 2020 Outsourcing

The judge directed A$50 million to the transport union to signal deterrence.

FILE - A Qantas Boeing 737 passenger plane takes off from Sydney Airport, Australia, Sept. 5, 2022. (AP Photo/Mark Baker, File)
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Overview

  • The Federal Court penalized Qantas for outsourcing ground handling at 10 airports in 2020, a move earlier found to be unlawful adverse action against 1,820 employees under the Fair Work Act.
  • Justice Michael Lee allocated A$50 million of the penalty to the Transport Workers’ Union, with the remaining A$40 million to be determined at a later hearing.
  • The penalty is in addition to a A$120 million compensation fund agreed in December 2024 for affected workers.
  • Lee said the fine must act as a real deterrent and criticized Qantas’ contrition as “the wrong kind of sorry,” questioning the airline’s culture and PR-led apologies.
  • Qantas said it accepts the ruling and issued an apology via CEO Vanessa Hudson as the decision caps a five-year union-led case upheld through to the High Court.