Qantas Airways has been ordered to pay $90 million in penalties after the Federal Court deemed the airline had illegally sacked over 1,800 employees during the peak of the COVID-19 pandemic. In a landmark decision, Federal Court Judge Michael Lee directed $50 million of the fine to the Transport Workers’ Union (TWU), which spearheaded the legal case against Qantas. Another hearing is expected to address the distribution of the remaining $40 million.
The Case Against Qantas
The controversy stems from Qantas’ decision in 2020 to outsource its baggage handling, cleaning, and ground services operations. The move was found to undermine the bargaining power of unions in wage negotiations. After losing an appeal in the High Court, the airline faced the imposed penalties, a move described as a decisive win for worker protections in Australia.
While the TWU initially sought the maximum possible penalty of $121 million, Qantas argued for a reduced fine in the range of $40 million to $80 million. Ultimately, the court ruled for a higher penalty, highlighting the gravity of Qantas’ breach.
REA Group Announces New Leadership
In other corporate news, REA Group, an asset of News Corp and operator of realestate.com.au, has named Cameron McIntyre as its incoming Chief Executive Officer. McIntyre will replace Owen Wilson, who has held the role for six years and will transition to chair REA India. McIntyre, previously the CEO of ASX-listed Carsales, is expected to continue REA’s growth trajectory, building on Financial Year 2023’s $1.7 billion revenue milestone and $564 million in net profits—up 23% year over year.
BlueScope Steel Faces Financial Struggles
Australia’s largest steelmaker, BlueScope, reported a significant drop in profits for FY2025, with net profits plummeting to $83.8 million—down from $805.7 million the previous year. The stark decline was attributed to a $438.9 million writedown in its coated products business and a global oversupply of steel that has dampened pricing.
Despite the challenging global steel market, BlueScope remains optimistic about its North American growth strategy and signs of recovery in Australian construction. “We’re navigating a complex environment, but our business model supports strong resilience,” noted CEO Mark Vassella. The company also reaffirmed its commitment to bidding for the Whyalla Steelworks, aligning with its multi-domestic operations strategy.
NAB Incurs Costs Over Payroll Errors
National Australia Bank (NAB) has revealed it could face $130 million in costs tied to payroll errors that resulted in underpayments to staff. A broader review has been launched to address the shortcomings, with NAB Group Executive Sarah White apologizing to impacted employees and affirming the bank’s commitment to rectifying the issues.
NAB flagged the increased expenditure during its third-quarter trading update, which also detailed a flat $1.8 billion profit for the three months ending June. Despite these challenges, NAB reported steady growth in business banking and home lending.
Economic Roundtable Focuses on Productivity and AI
Treasurer Jim Chalmers has emphasized the importance of addressing productivity challenges during a three-day economic roundtable involving experts and stakeholders. The discussions aim to inform budgetary decisions for the next three years and beyond, focusing on removing regulatory red tape that hinders development in energy and housing projects.
Additionally, Finance Minister Katy Gallagher highlighted plans to adopt a balanced approach to artificial intelligence (AI), aiming to harness its economic benefits while mitigating job-displacement risks.
Independent Senator David Pocock also weighed in, calling for greater transparency on climate-related risks to ensure policies align with long-term economic and environmental goals. Pocock urged the government to revisit housing reforms as the nation grapples with a deepening housing affordability crisis.
The outcomes of the economic roundtable are expected to factor heavily into future policies addressing Australia’s most pressing challenges, including climate change, housing, and the digital economy.
