Australia’s Federal Court has ordered Qantas Airways to pay a historic $90 million penalty for illegally outsourcing more than 1,800 ground handling jobs during the height of the COVID-19 pandemic. The ruling marks the largest penalty ever imposed for breaches of industrial relations law in Australian history, a landmark case closely watched by unions and corporate leaders.
Court delivers stinging rebuke
Justice Michael Lee ruled that Qantas’s decision in 2020 to outsource its ground workforce was unlawful and deliberately designed to weaken the Transport Workers Union (TWU). He ordered $50 million of the fine to be paid directly to the TWU, with the remaining $40 million subject to a separate hearing on whether it should go to affected workers.
Lee criticized Qantas for showing the “wrong kind of sorry,” focusing more on reputational damage than genuine remorse for workers’ hardship. He expressed unease about the absence of former CEO Alan Joyce’s direct testimony and questioned the airline’s internal culture, describing its industrial relations strategy as deeply entrenched.
The court’s decision follows earlier rulings against Qantas, including a $100 million fine in 2024 for selling tickets to canceled flights and a 2023 judgment that found the airline had unlawfully stood down a worker who raised COVID safety concerns.
Qantas apologizes, trust still fractured
In a statement posted on its website, the Australian airline apologized to the 1,820 workers affected, acknowledging the “genuine hardship” caused by the outsourcing decision.
“Over the past 18 months, we’ve worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers,” Qantas said, pledging that accountability remained its top priority.
The TWU hailed the penalty as a victory for workers and a warning to corporate Australia. “This ruthless, self-interested, and illegal calculation… has rightfully merited the largest ever penalty of its kind,” TWU National Secretary Michael Kaine said.
A troubled year for the Flying Kangaroo
The fine comes just weeks after Qantas confirmed one of the biggest cyberattacks in Australian aviation history. In July, hackers accessed the records of 5.7 million customers via a third-party call center database. Stolen data included names, emails, phone numbers, dates of birth, and frequent flyer numbers, though financial and passport details were not compromised.
Cybersecurity firm CyberCX linked the incident to the international hacker group Scattered Spider, which has recently targeted banks and insurers. Experts warned that the stolen personal data could fuel scams and identity fraud.
The dual crises underscore the scale of Qantas’s challenges as it attempts to repair its battered reputation. Analysts say the airline faces mounting pressure to prove its workplace culture and digital security are evolving fast enough to restore public trust.
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Chalmers, S., & Terzon, E. (2025, July 3). What the Qantas cyber attack may mean for your data. RNZ. Retrieved from https://www.rnz.co.nz/news/world/565817/what-the-qantas-cyber-attack-may-mean-for-your-data
Al Jazeera. (2023, September 13). Australia’s Qantas illegally sacked workers during COVID, court rules. Retrieved from https://www.aljazeera.com/economy/2023/9/13/australias-qantas-illegally-sacked-workers-during-covid-court-rules
