Qantas will pay $120 million in compensation to almost 2,000 illegally sacked employees during the COVID-19 pandemic.
The Transport Workers Union and the airline negotiated the settlement following a four-year court case.
Here’s what you need to know.
Illegally sacked
In late 2020, Qantas illegally sacked around 1,800 baggage employees across 10 airports, before outsourcing their work to third-party contractors.
An unfair dismissal case in the Federal Court found that Qantas’ decision to outsource and cut hundreds of jobs in an attempt to save money breached workers’ legal rights.
Qantas unsuccessfully appealed the decision twice.
Compensation
In October, the Federal Court ordered Qantas to compensate three former employees a total of $170,000.
The court found they lost wages and incurred non-economic losses. This included the “distress, hurt, humiliation or other emotional harm” they experienced after being fired.
The circumstances of these three complainants were used as test cases to determine how much Qantas needed to pay the other employees.
Qantas
Qantas CEO Vanessa Hudson said the airline intends to resolve the compensation claims before Christmas.
“This is an important step in bringing closure to these individuals, and I want to reiterate our sincere apologies to those impacted and their families,” Hudson said.
The Union
The Transport Workers’ Union (TWU) welcomed the settlement.
TWU National Secretary Michael Kaine said the case highlights the need for regulation to stop this from ever happening again.
“Delivering justice to these workers is just the first step in turning Qantas around,” Kaine said.
