Sydney: A court in Australia has mandated that Qantas Airways pay a total of A$170,000 ($114,000) to three baggage handlers unlawfully dismissed in 2020, marking a significant ruling in a lawsuit involving around 1,700 former workers whose jobs were outsourced.
Federal Court Judge Michael Lee ruled that Qantas must compensate each of the terminated workers A$30,000, A$40,000, and A$100,000, respectively, for non-economic loss, reflecting the “harm sustained” from the airline’s decision to lay off employees in an effort to avert industrial action.
These payouts will serve as “test cases” as Qantas negotiates with the Transport Workers Union (TWU) regarding a comprehensive damages bill for all affected ground workers. Qantas had previously argued that the sackings were a necessary cost-cutting measure amid the COVID-19 pandemic and pursued the industrial lawsuit all the way to the High Court.
Judge Lee determined that had Qantas not illegally outsourced its ground handling operations in 2020, it would have transitioned to lawful outsourcing in 2021, which could have saved the airline approximately A$100 million annually.
While the ruling did not finalize a total payout amount, it sets a precedent for Qantas as it faces its last major legal battle while attempting to recover from a challenging period related to its actions during and immediately after pandemic restrictions from 2020 to 2022.
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In May, Qantas announced plans to pay A$120 million to settle a lawsuit from regulators accusing the airline of selling tickets for already canceled flights in the months following the reopening of Australia’s international borders. Additionally, Qantas faced allegations of pressuring the federal government to block rival Qatar Airways from increasing its flight offerings to Australia.
“Qantas says it’s turned over a new leaf,” stated Michael Kaine, national secretary of the TWU, which brought the industrial dismissal case. “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.”
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Qantas CEO Vanessa Hudson, who took on the role in November 2023, expressed in a statement that the company apologizes to the workers affected by its decision, acknowledging that “the onus is on Qantas to learn from this.”
Judge Lee instructed Qantas and the TWU to engage in discussions regarding compensation for all sacked workers and to return to court on November 15.
