Bad News For Qantas

It’s bad, but expected news for Australian flag-carrier Qantas, which is being fined $90 million over illegally hiring.

The carrier is facing the penalty as a result of the ruling that follows a decision during the COVID-19 pandemic, which saw the outsourcing of workers, specifically 1,800 jobs in the ground handling space.

As a penalty, it has been mandated that $50 million will be paid to the Transport Workers Union, with the remaining $40 million not having a decided destination at this stage.

The handing down follows calls from external parties to fine the Australian flag-carrier the absolute maximum, which exceeds $120 million, with the airline arguing a more modest penalty should’ve been applied.

All in all, the findings and case according to the Federal Court show that Qantas had the wrong kind of sorry in mind; instead of being sorry for the situation that occurred involving its existing ground crew force, it was merely sorry it had been caught.

But What Happened At Qantas?

With such a hefty fine, the move by the flag-carrier has to have been severe, and it was, centring around the treatment of employees.

During the COVID-19 pandemic, Qantas terminated ground handling staff, among many other roles, including baggage handlers, cleaners and drivers, in a bid to cut costs.

While a move seen around the industry and especially the world, Qantas moved ahead with the outsourcing of contractors, knowing that the price point for this move would be better, but it received pushback.

The Transport Workers Union (TWU) has long advocated against the move and said that employees who were currently in the role needed to be better protected, which they were not, and thus a case began.

Compensation packages were already paid down to the affected workers in December 2024, with payouts of a considerable amount, in the five figures. Now, following an investigation, the fine has been handed down and is the largest penalty under the Fair Work Act for Australia.

Analysts say that while the fine will not undo the damage the Australian airline caused, it does set a better precedent moving forward that larger corporations must take accountability for such actions, and should better care for their workforce.

The Downfall Of Qantas

For Qantas, this latest finding is just one of the many missteps taken by management at the business in the last half-decade, with the effects still being felt to this day and have considerably damaged the brand.

Pride as a symbol of Australia, accompanying the tag ‘Spirit of Australia,’ Qantas is not just the flag-carrier but an integral part of the makeup of the country; however, that has faded in the last half-year.

There has been a dramatic reputational decline visible at the business, largely following decisions made during the COVID-19 pandemic, from the handling of customers to the treatment of employees.

Brand loyalty, which had always been huge with the airline, dropped substantially with disputes surrounding refunds, a lack of public trust, and mass cancellations for a full-service company.

Qantas’ problems emerging from the pandemic continued with high prices, trust dropping further, operational reliability concerns, lost baggage and more, which pushed customers away and competitors to increase their flying towards Australia.

The public’s view that the flag-carrier has been protected by the Government and resisted expansion by other international airlines in a bid to offer greater opportunities and lower prices has not aided Qantas’ position.

All in all, brand studies, surveys, and word of mouth for this once esteemed company have dramatically declined. Despite exciting future endeavours, the damage will continue to linger for some time.

Now, current leadership is hellbent on turning the ship around, through strategic iniaitives which aim to put customers first, something that the public argues went missing for far too long.