SYDNEY- Australian flag carrier Qantas (QF) faces a $100 million compensation bill for illegally firing workers during the pandemic. The Transport Workers’ Union (TWU) anticipates this sum will be awarded to affected employees.
A test case resulted in three staff members receiving compensation of $30,000, $40,000, and $100,000 for “non-economic loss.” The final compensation for all affected staff will be determined in November.
Qantas Workers Face Compensation
In 2020, Qantas outsourced its ground handling operations at 10 Australian airports, citing annual savings of $100 million. This decision led to 1,700 redundancies and prevented future industrial action by these employees.
The TWU challenged Qantas in Federal Court, arguing the outsourcing decision constituted “adverse action” against employees and aimed to prevent future industrial action. The Federal Court ruled in favor of the TWU.
Qantas appealed to the Full Court of the Federal Court and subsequently to the High Court, losing both appeals. The High Court confirmed Qantas’ decision violated labor laws.
The TWU hailed the High Court’s rejection of Qantas’ appeal as a significant victory for the outsourced workers who persistently sought justice.
Day of Justice
Justice Michael Lee noted that one worker developed “a major psychiatric illness” due to Qantas’ actions.
Justice Lee urged both parties to resolve disputes before the November mediation to determine final compensation figures, stressing the importance of closure for affected workers.
TWU assistant state secretary Nick McIntosh declared October 21, 2024, as a day of justice, warning corporate Australia against illegal worker dismissals.
CEO Vanessa Hudson apologized to the affected workers, promising to expedite payments and learn from the incident. Qantas will collaborate with the Transport Workers Union (TWU) to accelerate the compensation process.
TWU National Secretary Michael Kaine estimates the total compensation could exceed $100 million. He criticized Qantas for attempting to “decimate the pay and conditions of its workforce” under the guise of pandemic-related measures.
Former Qantas ground service worker Don Dixon described the job loss as “horrible” and “brutal,” highlighting the challenges older workers face in finding new employment.
Earlier, the Federal Court ordered Qantas to pay $100 million in penalties for misleading consumers about flight cancellations. ACCC Chair Gina Cass-Gottlieb emphasized this penalty as a strong deterrent for businesses engaging in customer deception.
In May, Qantas agreed to pay approximately $20 million to consumers affected by pre-planned flight cancellations. This agreement with the ACCC impacted up to 880,000 customers.
The airline’s statutory profits after tax declined by nearly 30% in the last financial year, which Qantas attributes to moderating fare prices.
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