Qantas ordered to compensate 1,700 sacked workers over outsourcing case
SYDNEY, AUSTRALIA — In a landmark decision, the Federal Court of Australia has ruled that Qantas Airways must compensate 1,700 ground handlers who were unlawfully dismissed in November 2020.
The court found that the Australian airline illegally outsourced these jobs at ten airports across the country during the height of the COVID-19 pandemic, replacing the workers with contractors.
Compensation for test cases sets precedent
In particular, Qantas has been ordered to pay a total of $114,000 to three former employees. These payments, covering “non-economic loss,” are distributed over $20,000, $27,000, and $67,000, respectively.
These payouts are to serve as “test cases” as the airline negotiates a comprehensive damages settlement with a union for all former ground workers.
The Transport Workers Union (TWU), which filed the case on behalf of the workers, estimates total compensation could exceed $67 million once all claims are settled.
“Now everybody knows how Qantas treats its workers. Today is vindication for what we’ve been fighting for over the last three years,” said Damien Pollard, one of the illegally outsourced Qantas workers.
Huge win today.
Over $100 million in compensation for economic loss and hurt and suffering will go to illegally sacked Qantas workers. https://t.co/HQZjQDpwHX
— TWU Australia (@TWUAus) October 21, 2024
Qantas apologizes and promises swift payments
In response to the ruling, Qantas issued a public apology. Vanessa Hudson, Qantas Group CEO, stated: “We sincerely apologize to our former employees who were impacted by this decision and we know that the onus is on Qantas to learn from this.”
She acknowledged the emotional and financial toll on affected workers and expressed hope that the compensation would provide closure.
Legal and reputational challenges for Qantas
This ruling marks a significant legal setback for Qantas as it navigates reputational challenges from its actions during the pandemic. The airline had argued that outsourcing was necessary to cut costs amid financial pressures.
However, Federal Court Judge Michael Lee noted that while cost-cutting was a factor, the outsourcing was conducted unlawfully in 2020.
The court’s decision is seen as a critical step in holding Qantas accountable for its treatment of employees during a tumultuous period.
Michael Kaine, national secretary of the TWU, stated, “It’s time to prove it. After relentlessly prolonging this case and denying workers justice, Qantas must do everything in its power to ensure appropriate compensation.”
Next steps in compensation negotiations
Judge Lee has instructed Qantas and the TWU to negotiate compensation for all affected workers and return to court by November 15. This ongoing process will determine the final compensation amounts for each of the 1,700 former ground handlers.
Qantas is now tasked with rebuilding trust with its workforce and customers as it seeks to move past this challenging chapter in its history.
