Qantas is currently facing potential penalties from the Federal Court due to the unlawful outsourcing of 1,800 ground-handlers during the pandemic, with fines possibly reaching up to $121 million.

The airline has admitted to unlawfully sacking these workers, describing the decision as a 'mistake' rather than intentional, although this has been criticized as insincere.

The Transport Workers Union (TWU) has labeled the sackings as 'appalling' and the largest case of illegal dismissals in Australian corporate history.

Catherine Walsh, Qantas' chief people officer, expressed regret over the situation and stated that the compensation payment signifies the company's remorse.

Compensation payments to affected workers are expected to begin by the end of May 2025, with each worker receiving a base payment of $10,000.

A five-day Federal Court hearing commenced on May 19, 2025, in Sydney to determine the exact penalty for Qantas' actions, with Justice Michael Lee presiding.

Justice Lee's hearing is expected to conclude on May 22, 2025, and will also address who will receive the penalty funds.

Noel Hutley SC, representing the TWU, argued that Qantas' claims of contrition are undermined by its previous denials of wrongdoing throughout the litigation.

Justice Lee remarked that if Qantas were genuinely remorseful, they should have presented a witness involved in the decisions made during the sackings.

Despite these legal challenges, Qantas has seen a rise in travel demand, with its share price increasing by 68% over the past year.

This case reflects the ongoing fallout from Alan Joyce's controversial tenure as CEO, which ended 20 months ago, leaving current CEO Vanessa Hudson to navigate these significant challenges.

TWU Secretary Michael Kaine emphasized the importance of the penalty as a deterrent for other companies against violating workers' rights.