In 2020, Qantas outsourced over 1,800 baggage handlers, cleaners, and ground staff, which the Federal Court determined was aimed at weakening union negotiation leverage on wages.

The embattled airline’s appeal to the High Court was unsuccessful, paving the way for the penalty to be awarded on Monday.

The airline’s behavior post-outsourcing faced strong criticism, especially for its attempts to present a misleading version of the outsourcing decision to the court.

He noted Qantas had apologised publicly but then had attempted to deny any compensation payments to the affected workers.

In addition to this large penalty, Qantas is required to cover a $120 million compensation to the affected ground staff for their economic losses and the distress caused by the outsourcing.

However, Justice Lee said he didn’t have enough evidence to be convinced those payments would be made.

Justice Lee highlighted that the beleaguered airline started acknowledging its wrongdoings in 2023, aligning with the exit of former CEO Alan Joyce.

The courtroom was packed with union members and representatives, who hugged and exchanged smiles after Justice Lee handed down his decision.

This penalty follows other controversies for Qantas, like selling tickets for flights that were eventually canceled, leading to a $100 million fine after the Australian Competition and Consumer Commission filed a lawsuit.