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Introduction
Australia’s flagship airline Qantas has been hit with a landmark penalty of $90 million for unlawfully sacking more than 1,800 ground staff. The ruling, described as the largest case of illegal dismissals in the nation’s history, marks a significant blow for the airline as it grapples with mounting legal and reputational challenges.
Details of the Case
In 2020, Qantas outsourced baggage handlers, cleaners, and ground crew roles—a move the Federal Court found was designed to limit the bargaining power of unions in wage negotiations. After losing its High Court appeal in 2023, the airline faced penalties handed down on Monday, August 18, 2025.
Justice Michael Lee of the Federal Court emphasised the “sheer scale of the contraventions” when delivering the $90 million fine, stating it must serve as a deterrent to other corporations.
Penalty Breakdown
- Total penalty: $90 million
- $50 million of this sum is to be paid directly to the Transport Workers Union (TWU), which brought the case
The ruling comes in addition to a $120 million compensation package already earmarked for affected workers, covering lost income, pain, and suffering. Justice Lee, however, expressed doubts about Qantas’ commitment to honouring those payments.
Judicial Commentary
Justice Lee was scathing in his assessment of Qantas’ actions, saying:
“To deprive someone of work illegally is to deprive someone of an aspect of their human dignity, and this is not assuaged simply by expressions of regret.”
He noted that while Qantas apologised publicly, the company also attempted to resist compensation efforts, describing its conduct as “less than candid.”
Union and Worker Response
The courtroom was packed with union members, many of whom embraced and celebrated after the decision. The TWU had sought the maximum possible penalty of $121 million, arguing that strong sanctions were necessary to hold the airline accountable and deter corporate misconduct.
Leadership Changes and Accountability
The decision also follows the resignation of long-time CEO Alan Joyce in 2023, after 15 years at the helm. Justice Lee observed that the company only began to meaningfully accept responsibility for its actions following Joyce’s departure.
Broader Legal Challenges
This penalty adds to Qantas’ ongoing legal woes, including a $100 million fine imposed by the ACCC earlier in 2025 after the airline was found to have sold tickets for flights that had already been cancelled. Together, the cases underscore a turbulent period for Qantas, once regarded as the “Spirit of Australia.”
Conclusion
Qantas now faces one of the most expensive corporate misconduct bills in Australian history, with penalties and compensation exceeding $300 million. The case stands as a defining moment in the intersection of corporate power, worker rights, and union advocacy in the modern Australian workplace.