Qantas pays $120Mn to illegally outsourced workers during COVID-19 pandemic
SYDNEY, AUSTRALIA — Qantas Airways has agreed to pay AUD120 million (US$74 million) in compensation to 1,820 former ground crew workers who were unlawfully outsourced during the COVID-19 pandemic.
The agreement came after a four-year legal battle led by the Transport Workers Union (TWU) and a Federal Court ruling that declared outsourcing illegal.
The compensation fund, scheduled for establishment in 2025, will be managed by Maurice Blackburn law firm. Payments will cover economic loss, hurt, and suffering, with a cap of up to 12 months’ pay for each affected worker.
CEO issues apology amid reputational repair efforts
Vanessa Hudson, Qantas Group CEO, apologized to the impacted workers and their families. “We know this has been a difficult period for those affected and are pleased we have been able to work closely with the TWU to expedite this process and resolve it ahead of Christmas,” she said.
The settlement marks a significant step in Qantas’ efforts to rebuild its reputation after years of legal disputes and public backlash over its treatment of employees during the pandemic. The outsourcing decision was made under former CEO Alan Joyce in 2020 as part of cost-cutting measures.
Federal court ruling highlights unlawful conduct
Earlier this year, the Federal Court found Qantas’ outsourcing decision unlawful, citing that one of its motivations was to prevent employees from engaging in protected industrial action. Justice Michael Lee awarded compensation in three test cases — AUD30,000 (US$18,000), AUD40,000 (US$24,000), and AUD100,000 (US$62,000) — establishing a framework for broader payouts.
Michael Kaine, TWU National Secretary, described the outsourcing as “the largest case of illegal sackings in Australian history.” He commended the resilience of affected workers who endured “four grueling years” of legal battles and personal hardships.
“These workers helped build the Spirit of Australia,” Kaine said. “Delivering justice to these workers is just the first step in turning Qantas around — but there’s still a long way to go.”
Union calls for industry reform
The TWU has urged systemic changes in aviation governance to prevent similar incidents. It is advocating for the creation of a Safe and Secure Skies Commission to ensure fair treatment of workers across the industry.
While the settlement provides closure for affected employees, it also signals a leadership shift under Hudson as Qantas aims to restore trust with both its workforce and customers. This agreement underscores an effort to move past one of the most contentious chapters in the airline’s history.
