The national carrier has also paid $120 million into the compensation fund for affected former employees, after it laid off 1,700 ground handling staff during the pandemic.
Key Takeaways
- The Federal Court has fined Qantas $90 million for illegally outsourcing ground handling roles during the 2020 pandemic.
- Qantas said in a statement it has accepted the Federal Court’s penalty, and added it paid $120 million into the compensation fund for all affected former employees, which is being administered by Maurice Blackburn.
- $50 million of the penalty will be paid to the Transport Workers Union, and another proceeding will determine how the balance will be distributed.
Key background
In 2020, Qantas announced it had decided to outsource its ground handling operations at 10 Australian airports – a decision it claimed would save the airline about $100 million a year. As a result, 1700 staff were made redundant.
The Transport Workers’ Union took action against the airline in 2021 in the Federal Court, where it was found that Qantas did sack its workers illegally. Qantas appealed to the Full Court of the Federal Court, and again to the High Court, but lost both appeals.
In October 2024, Qantas was ordered to pay three staff $170,000 in total for “non-economic loss”, which served as a kind of test case for the kind of compensation Qantas would be required to pay to all affected staff.
Big number
$90 million. That’s how much Justice Michael Lee of the Federal Court has determined that Qantas should pay to staff.
$50 million of that penalty will be paid to the Transport Workers’ Union, and further orders will be made on the balance of $40 million at a later date.
What we know
We know Qantas was in breach of the Fair Work Act, but we don’t know whether it was truly sorry about it – at least, that’s what Justice Lee says. The Federal Court justice said in his judgement that while the airline’s chief people officer, Catherine Walsh, apologised for Qantas’ actions, the court would have been more satisfied if her evidence was supplemented by a member of senior management who was present when the proposal was “socialised” and evaluated,
Crucial quote
“Going back to the issue as to whether Qantas is truly contrite, I have hesitation in reaching a conclusion. Its conduct of the case and its public comments throughout the case gives reason for pause,” Justice Michael Lee.
Qantas responds
The airline’s group chief executive officer Vanessa Hudson said: “We sincerely apologise 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.”
Hudson said over the past 18 months, Qantas has “worked hard” to change the way it operates and to rebuild trust with its staff and customers.
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