Union Leaders Declare Victory as Qantas Faces Record $90 Million Penalty

Aug 18, 2025

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Transport Workers Union leaders declared vindication Monday after a Federal Court judge imposed a record $90 million penalty on Qantas Airways for unlawfully outsourcing 1,820 ground handling workers, concluding a five-year legal battle that union officials said no one believed they could win.

National Secretary Michael Kaine told reporters outside the Federal Court that the penalty represented "the most significant industrial outcome in Australia's history" and sent a clear message to employers nationwide about illegal treatment of workers.

"It's wrong to say that we're happy today, but it is right to say that our union, and that means 60,000 members of our union, which took on this risk, which took on a fight, a battle five years ago, which no one said we could win, feels vindicated," Kaine said.

The unprecedented penalty amount reflects what Justice Michael Lee described as the largest workplace rights violation in Australian industrial law history, involving Qantas' November 2020 decision to outsource ground handling operations at 10 airports during the COVID-19 pandemic.

David Versus Goliath Battle

Kaine characterized the legal challenge as an audacious David versus Goliath confrontation that drew skepticism from the outset.

"Five years ago, people said, you've got to be kidding. This is a massive long shot. It's audacious. You know, they didn't give us a snowflakes chance in hell," he said. "The Fair Work Ombudsman, nowhere to be seen. The only ones willing to take Qantas on were us, were these workers here."

The union leader emphasized that the case was funded by contributions from 60,000 Transport Workers Union members across multiple industries, including truck drivers, gig workers, flight attendants, pilots, bus drivers and waste workers.

"They all resourced up this case. They had to. Qantas, we knew, had deep pockets. But more importantly, this was an egregious wrong that had to be righted," Kaine said.

Justice Lee awarded $50 million of the penalty directly to the Transport Workers Union, with the remaining $40 million to be allocated at a future hearing. The court also noted that Qantas has separately agreed to pay $120 million into a compensation fund for affected workers.

Scathing Judicial Criticism

Kaine highlighted Justice Lee's harsh criticism of Qantas' conduct throughout the legal proceedings, describing the airline's behavior as deceptive and lacking genuine contrition.

"Justice Lee has absolutely smashed Qantas today for its illegal conduct, and rightly so. This penalty of $90 million, an unprecedented amount for an industrial breach, reflects the gravity of this," Kaine said.

The union secretary noted that Justice Lee saw through what he called "the slippery and deceptive evidence that Qantas put before it" and questioned whether the airline had genuinely changed its corporate culture.

"Justice Lee saw through the slippery and deceptive evidence that Qantas put before it. The full federal court backed in Justice Lee, and then Alan Joyce's Qantas decided that it would take his own workforce to the High Court of Australia," Kaine said.

Workers Share Personal Impact

Affected workers at the press conference described the devastating personal toll of losing their jobs during the pandemic, with many struggling to find new employment due to their age and specialized skills.

Anne Gerges, who worked in fleet presentation cleaning international aircraft, said she felt "relief" at the court's decision after five years of uncertainty.

"Relief. Relief. We can close this chapter and move on now. Big relief," Gerges said when asked about her feelings regarding the penalty.

When asked if she had found new employment since losing her job, Gerges responded simply: "No."

Don Dixon, a former ramp supervisor with 20 years at Qantas, described the emotional trauma of the prolonged legal battle and the challenges faced by older workers seeking new employment.

"Well, today is a day of mixed emotions. As Michael explained, five years we've been taken from federal courts to full benches to the High Court back here with appeals just non-stop. You know, one would think we were some sort of a ping ball," Dixon said.

Age Discrimination Concerns

Dixon highlighted the particular challenges faced by older workers in finding new employment after their termination.

"Most people are in there 60 or above. You know, to be retrained at this time in your life and go to an employer and say, oh, I was 20 years plus working for, you know, formerly the greatest company in this country... What can you do? Service an aircraft. Do you happen to have a plane? No. So that's where we are now," Dixon said.

The former supervisor expressed hope that current Qantas CEO Vanessa Hudson would learn from the court's decision and change how the airline treats its workforce.

"I hope Vanessa Hudson's listening and she changes the way she treats her staff. That's the hope," Dixon said.

Legal Team Highlights Significance

Josh Bornstein, the union's lead lawyer, described the penalty as marking both legal and industrial relations history, emphasizing the calculated nature of Qantas' actions.

"Today, legal history was made, industrial relations history was made. This is the largest penalty handed down for a breach of industrial relations laws in 120 years. It's also perhaps the darkest day in Qantas's 105 year history," Bornstein said.

Bornstein characterized Qantas' actions as a deliberate union-busting operation rather than a legitimate business decision driven by pandemic pressures.

"This was a calculated, carefully calibrated and planned illegal union busting operation. This was planned for months and months with expensive lawyers and executed very callously and illegally," he said.

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Cultural Change Questions

The lawyer emphasized Justice Lee's concerns about whether Qantas had genuinely reformed its corporate culture, noting the judge's ongoing skepticism about the airline's sincerity.

"As Justice Lee very plainly made clear today, he has deep misgivings about whether Qantas' culture has changed or will change and therefore thinks it's necessary in order to deter Qantas from repeating its militant unlawful behaviour by leaving a record penalty," Bornstein said.

He praised the union's courage in taking on what he described as Australia's most formidable legal opponent.

"The TWU who brought the case has been ordered to be paid $50 million of that penalty and that is a recognition of their courage in taking on what is, in my experience, the fiercest legal opponent in Australia. In my career, there's no fiercer opponent than Qantas," Bornstein said.

Corporate Dictatorship Allegations

Kaine repeatedly characterized Qantas under former CEO Alan Joyce as operating like a "brutal corporate dictatorship," linking the executive's eventual departure to the court's findings.

"What this result shows the community is that under Alan Joyce, Qantas was a brutal corporate dictatorship. And we know what happened. Alan Joyce was effectively marched out of the door, as this result confirms," Kaine said.

The union leader emphasized that Joyce's Qantas pursued the case all the way to the High Court of Australia, where the workers ultimately prevailed.

JobKeeper Context

Kaine highlighted the particular contradiction between Qantas receiving government JobKeeper payments while simultaneously terminating workers, describing it as a breach of social contract.

"It was breathtaking in 2020. Qantas had already received around $900 million of funds in JobKeeper payments. JobKeeper payments was a social contract between the government and the company to keep workers connected with their jobs until the pandemic passed," Kaine said.

"And what did Alan Joyce's corporation do? They sacked these workers to stop them taking industrial action, to stop them bargaining to get a better outcome for themselves and their families. That was found to be illegal. The High Court backed it in 7-0," he said.

Future Allocation of Remaining Penalty

Regarding the $40 million portion of the penalty yet to be allocated, Kaine indicated the union would argue for direct payments to affected workers rather than other recipients.

"We will be strongly submitting that $40 million should go to additional support for the directly affected workers here, those 1,820 workers whose lives have been absolutely decimated, some of them irreparably," Kaine said.

The union calculated this would represent approximately $22,000 for each affected worker, which Kaine described as "a pretty good bonus for them."

Compensation Versus Penalty Distinction

Kaine clarified the distinction between the penalty and separate compensation arrangements, noting that Qantas had already agreed to fund $120 million in compensation through an administration fund.

"Qantas has agreed to fund $120 million worth of compensation already. And these workers are in the process of accessing that money through an administration fund. So the compensation for these workers for this wrong has already been paid. This $90 million is a penalty in addition to that," he said.

Union's Mission Beyond Money

When questioned about whether the union's motivation was financial gain or vindication, Kaine emphasized the broader principle at stake.

"What's important is that this never happens to any Australian worker ever again. What's important is that a strong signal has been sent to every employer in Australia. If you break the law, you will be held accountable," Kaine said.

The union leader stressed that monetary considerations were not the primary motivation for pursuing the case.

"We were not thinking about money or penalty. We were thinking about making right this wrong. That's what we have done together as a union. And Justice Lee today has sent a signal to Qantas and every other employer, don't do it or you will be held accountable," he said.

National Implications

Dixon called for Qantas to demonstrate genuine change through actions rather than corporate statements, connecting the airline's treatment of workers to its national identity.

"If you want to be the spirit of Australia, then back Australians. Stop outsourcing, have Australian workers do the job, and then get that loyalty back, because this certainly was lost," Dixon said.

The former supervisor expressed skepticism about corporate apologies, saying: "I can only go from what Justice Lee said today, that the word sorry did come out, but it didn't have a lot of strength behind it."

Resource Commitment

Kaine acknowledged the enormous resources the union committed to the case, funded by member dues across all sectors represented by the Transport Workers Union.

"Significant resources have been expended. Direct legal costs, of course, have been enormous. They've been funded, as I said, by the union dues of every worker across the union, regardless of what sector they're from," he said.

The union leader explained that members understood the broader implications of the case for their own job security.

"Those workers understand that if they hadn't taken on this egregious wrong, then it would effectively be a permission slip for employers in their sector to do the same," Kaine said.

Historical Significance

Kaine emphasized the case's place in Australian industrial relations history, describing it as setting a precedent for future employer conduct.

"This is what being in union is. It's getting together and bringing that collective strength to fight wrongs. And this was the biggest wrong that was ever perpetrated in industrial history," he said.

The union leader concluded by reiterating the message sent to corporate Australia through the record penalty.

"Justice Lee has smashed Qantas today. $90 million, the largest industrial penalty in Australia's history, by a long shot," Kaine said. "The most important thing, though, is the signal that's been sent to corporate Australia. Treat your workers illegally and you will be held accountable."

The press conference concluded with affected workers and union officials expressing both relief at the conclusion of their legal battle and determination that similar treatment of workers should never occur again in Australia.

Meanwhile, The Qantas Group accepts the Federal Court’s decision today on the penalty for unlawfully outsourcing its ground handling function in 2020.

Today’s judgement holds us accountable for our actions that caused real harm to our employees.

Qantas Group Chief Executive Officer Vanessa Hudson said: “We sincerely apologise to each and every one of the 1,820 ground handling employees and to their families who suffered as a result.

“The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families.

“The impact was felt not only by those who lost their jobs, but by our entire workforce.

“Over the past 18 months we’ve worked hard to change the way we operate as part of our efforts to rebuild trust with our people and our customers. This remains our highest priority as we work to earn back the trust we lost.”

The $90 million penalty will be paid in accordance with the orders of the Court.

Qantas has also paid $120 million into the compensation fund for all affected former employees, which is being administered by Maurice Blackburn.

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