Why Qantas Fined A$90 Million & what Judge Says, Explained

Qantas has received the harshest industrial penalty in Australian history—A$90 million—after illegally sacking over 1,800 ground staff, and the judge didn’t hold back calling out their 'wrong kind of sorry.

Why Qantas Was Fined A$90 Million

Australia’s Federal Court has imposed a record A$90 million fine on Qantas for outsourcing ground-handling jobs during the COVID-19 pandemic. The Transport Workers’ Union (TWU) will receive A$50 million, while the remaining A$40 million awaits allocation. This comes atop a prior A$120 million compensation deal. 

What Led to the Fine?

In 2020, Qantas replaced over 1,800 ground-handling staff with contractors across multiple airports. The Federal Court found this move breached the Fair Work Act, concluding that the outsourcing was a deliberate ploy to undercut union-negotiated wages and diminish collective bargaining power.

How Much Is the Penalty & Where did this Money Go?

• A$90 million fine, the largest industrial relations penalty in Australia’s history.

• A$50 million directed to the Transport Workers’ Union, recognizing its role in exposing the breach.

• The distribution of the remaining A$40 million will be decided in a future court hearing—likely to support affected workers.

Social Media Reactions

A user wrote on X:

"They should have been fined $1 billion."

They did fucking not! They should have been fined $1 billion. Qantas is run by corporate criminals pic.twitter.com/9ND7HCU7bT

— BIn54 (@Born_In_54) August 18, 2025

What Did the Judge Say?

Federal Court Justice Michael Lee criticized Qantas for offering a superficial apology, labeling it “the wrong kind of sorry”—more about protecting the brand than remorse for harm done to employees.

He denounced the outsourcing as “carefully planned,” emphasizing that the fine must serve as a genuine deterrent—not a cost of doing business. Justice Lee also questioned Qantas’s decision-making transparency, noting CEO Vanessa Hudson’s absence from hearings undermined claims of cultural reform.

What This Means for Qantas & Workers

• Total financial impact on Qantas now exceeds A$210 million (A$120M compensation + A$90M fine).

• Union victory: TWU hailed the ruling as a landmark win in corporate accountability—a "David vs. Goliath" moment.

• Reputation under scrutiny: Justice Lee’s comments highlight ongoing challenges for Qantas to demonstrate tangible organizational reform beyond public apologies