Qantas to enter fine talks
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Qantas looks like it will have to pay millions after illegally sacking 1,700 workers during the COVID-19 pandemic.
Qantas faces a significant compensation payout to 1,700 former workers after the Federal Court ruled on Monday that the airline had illegally dismissed them during the COVID-19 pandemic.
The ruling follows a prior decision by the High Court in 2023 that upheld earlier Federal Court decisions from 2021 and 2022, confirming that Qantas had violated the Fair Work Act when it outsourced ground-handling roles previously held by its employees.
The court's decision, based on three test cases, sets the compensation benchmark, with the dismissed workers set to receive between $30,000 and $100,000 each, reflecting “non-economic loss”.
The total payout is expected to exceed $100 million, as estimated by the Transport Workers Union (TWU), which originally initiated the legal action in 2020.
Qantas, which recorded a $1.25 billion profit for the 2024 financial year, has reserved $70 million for the case in its accounts but acknowledges that the final compensation amount may vary.
Mediation between Qantas and the TWU will now proceed to finalise the total compensation figure, with a cap set at one year's pay per affected worker.
The court aims to ensure resolution by November.
Qantas CEO Vanessa Hudson apologised for the dismissals, acknowledging the emotional and financial impact on former employees and their families.
“We sincerely apologise to our former employees who were impacted by this decision and we know that the onus is on Qantas to learn from this,” she stated.
The TWU, however, accused Qantas of engaging in “legal delaying tactics” throughout the nearly four-year litigation.
TWU assistant secretary Nick McIntosh described the ruling as a major victory for the sacked workers.
“This is a message to corporate Australia that the biggest illegal sacking of workers in Australian history will not go unpunished,” he said.
The case underscores ongoing tensions between Qantas and its workforce, exacerbated by recent controversies involving customer service, flight cancellations, and executive remuneration.
As the mediation proceeds, all parties are urged to expedite the compensation process to provide long-overdue closure for affected workers. The Federal Court will also assess potential penalties against Qantas for its unlawful conduct.