Qantas faces multi-million dollar payout for illegal staff outsourcing
SYDNEY, AUSTRALIA — Qantas Airways might be compelled to pay “many millions” in compensation to nearly 1,700 former employees following a ruling that deemed their outsourcing during the COVID-19 pandemic illegal.
The Transport Workers Union (TWU) is spearheading the effort, taking the airline company to the Federal Court in what has been described as “the largest case of illegal sackings in Australia’s corporate history.”
A previous judgment found that Qantas violated the Fair Work Act by outsourcing ground staff roles at 10 Australian airports in late 2020. The airline defended this move as a cost-saving measure to mitigate the pandemic’s financial blow.
Despite an unsuccessful appeal to the High Court in September, Qantas now faces the reality of compensating affected workers and potentially incurring multi-million-dollar penalties for its actions.
As the court proceedings commence, attention turns to three test cases that will help determine the scale of financial redress for the retrenched workers.
Outside the courtroom, TWU’s lawyer, Josh Bornstein, emphasized the expectation for “very, very substantial” compensation, reflecting the gravity of the airline’s breach.
The personal toll on the sacked workers has been profound, with reports of lost homes and family breakdowns. Don Dixon, one of the affected employees, expressed hope for rightful compensation, lamenting the unjust termination of workers who had dedicatedly served to ensure passenger safety.
The court also heard arguments regarding the potential employment prospects of the outsourced workers if Qantas had not made its controversial decision. The TWU argues that these employees would have remained employed for a significant period, warranting considerable compensation.
Justice Michael Lee criticized the union lawyers for not simultaneously pursuing compensation for lost membership fees, highlighting the urgency of resolving the matter to facilitate swift compensation for the workers.
Qantas, for its part, expressed a desire for the former employees to receive “fair compensation as quickly as possible,” issuing an apology for the personal impacts of its outsourcing decision.
