The Federal Court has imposed a A$90 million penalty on Qantas Airways (ASX:QAN) for unlawfully outsourcing its below-the-wing workforce in 2020. Justice Michael Lee ruled that A$50 million of the fine be paid to the Transport Workers Union (TWU), with a further hearing scheduled to determine the distribution of the remaining A$40 million.
In delivering his judgment, Justice Lee criticised the conduct of former Qantas chief executive Alan Joyce, stating he was directly involved in the decision to outsource. He also rebuked the airline’s current chief executive, Vanessa Hudson, for failing to appear in court, saying she was “uniquely placed to assist the court”. The judge described the airline’s remorse as belated and questioned the credibility of its continued use of the slogan “Spirit of Australia”.
Justice Lee also condemned misleading public statements made by Qantas during the case and emphasised the impact on the 1,820 workers affected, stating: “To deprive someone of work illegally is to deprive someone of an aspect of their human dignity.”
Long-running dispute nearing resolution
The penalty, close to the maximum A$121 million available, follows a protracted legal battle initiated by the TWU in December 2020. Earlier findings had confirmed Qantas acted to prevent potential industrial action by baggage handlers, cleaners and ground staff. Appeals to both the Full Federal Court and the High Court upheld the original ruling.
In late 2024, Qantas and the TWU reached a separate compensation settlement of A$120 million for affected workers. Justice Lee has since criticised the airline’s handling of the case, citing a “lack of candour”.
Shares in Qantas fell nearly 1% in early trading to A$11.54 following the decision.