Qantas Hit with Record Fine Over Illegal Ground Handling Outsourcing

In November 2020, Qantas CEO Andrew David approved the outsourcing of ground handling operations at 10 Australian airports to third parties, resulting in the dismissal of the airline’s in-house ground staff. The Transport Workers’ Union (TWU) challenged the move, and in July 2021, it was ruled that the outsourcing constituted an “adverse action” violating the Fair Work Act 2009. The case escalated to the High Court, which unanimously upheld Qantas’ illegal conduct, finding the airline had barred workers from exercising their industrial rights to collective bargaining and protected industrial action.

Following the High Court ruling, the Federal Court rejected Qantas’ bid to avoid compensating affected employees, ordering the airline to fund a A$120 million pool for workers’ economic losses, hurt and suffering, alongside a record A$90 million fine—A$50 million of which is to be paid directly to the TWU, with the remaining A$40 million’s allocation to be determined later. Qantas Group accepted the decision, with CEO Vanessa Hudson issuing a sincere apology to the 1,820 impacted employees and their families, acknowledging the hardship caused by the 2020 decision, especially amid an uncertain period, and noting the airline has worked to overhaul its operations and rebuild trust over the past 18 months.

The TWU hailed the outcome as the end of a five-year “David and Goliath battle” that vindicated workers who had been derided by Qantas management for challenging the outsourcing. TWU National Secretary Michael Kaine criticised Qantas’ apology as insincere, arguing the airline only expressed regret due to the record penalty—pointing out workers had learned of their dismissals via loudspeaker, and Qantas had fought the case all the way to the High Court while resisting compensation. Kaine called for improved supply chain worker standards and the establishment of a Safe and Secure Skies Commission to prioritise communities over corporate profits. Federal Court Justice Michael Lee also criticised Qantas’ media statements during the legal battle, which had justified its actions and questioned court decisions in newspaper interviews.