Qantas has been ordered by the Federal Court to pay a AUD 90 million fine for illegally outsourcing over 1,800 ground handling staff during the COVID-19 pandemic. The judge stated that the penalty must not be less than 75% of the maximum AUD 121 million, with AUD 50 million to be paid directly to the Transport Workers Union (TWU). The use of the remaining AUD 40 million, and whether it will be distributed to employees, will be determined in a later hearing.
The case stems from Qantas’s 2020 decision to outsource its ground handling workforce, which resulted in the unlawful dismissal of over 1,800 employees. The Federal Court later ruled this action illegal. The judge noted that Qantas’s subsequent apology focused more on the company’s interests than on the rights of affected employees, and that former CEO Alan Joyce was not directly responsible for the decision, raising concerns about the conduct of senior management. While Chief People Officer Catherine Walsh apologized in court, the judge believed the person who could provide the most direct evidence should have been current CEO Vanessa Hudson.
Hudson, who became CEO in September 2023, publicly apologized to the 1,820 affected employees and their families, acknowledging that the outsourcing decision five years ago caused significant hardship during the pandemic. She emphasized that over the past 18 months, Qantas has been working to change its operations and rebuild trust with both employees and customers.