Qantas has been fined $90 million for unlawfully terminating 1,820 baggage handlers and ground staff in 2020, an action now costing the airline over $200 million. Justice Michael Lee determined the penalty, stating it was below 75% of the maximum. The Transport Workers' Union (TWU) will receive $50 million of the penalty, with the remaining $40 million allocation still undecided. Lee noted that Qantas exhibited some regrets, likely stemming from corporate damage rather than concern for the affected workers. The TWU successfully argued that Qantas' outsourcing violated the Fair Work Act, marking the end of a five-year legal dispute.
Justice Michael Lee stated that the $90m penalty was significantly below the maximum, and that $50m would be allocated to the Transport Workers' Union, with uncertainty over the remaining $40m allocation.
Lee characterized the legal battle between the Transport Workers' Union and Qantas as highly unusual, noting his hesitations regarding whether Qantas expressed genuine remorse or was simply showing performative contrition.
Despite Qantas' expected financial results on August 28, the total cost of the outsourcing issue has exceeded the previously anticipated $70m, indicating a significant financial impact.
The federal court ruled that the airline's decision to outsource was unlawful, violating the Fair Work Act, particularly given the union membership of many affected employees.
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