Qantas to pay $120m to workers it illegally sacked during pandemic

The national carrier has agreed to pay $120 million to illegally outsourced ground handlers.

Editor’s note: This story first appeared on HR Leader’s sister brand, Australian Aviation.

A fund, administered by Maurice Blackburn Lawyers on behalf of the Transport Workers’ Union (TWU), will compensate the 1,820 affected workers following a ruling by the Federal Court in October. If split evenly, each worker would receive around $66,000, though payouts will likely vary on a case-by-case basis.

The final figure includes both the approximately 1,700 workers who lost their jobs, as well as around 120 who were redeployed within Qantas and suffered non-economic losses.

It comes after the High Court upheld a ruling in the Federal Court last year that the Flying Kangaroo illegally sacked workers mid-pandemic. The airline had earlier argued it had no choice but to remove the roles due to the uncertainty of COVID-19 and a potential $100 million a year cost savings the move could bring.

“1,800 former Qantas workers did nothing wrong but have been subject to four gruelling years of this court battle after being illegally outsourced. They’ve stood by each other during what for some has been the most difficult times of their lives, through family breakdowns, financial stress and mental hardship,” said TWU national secretary Michael Kaine.

“Soon, these brave men and women will receive long-awaited compensation in accordance with the principles set out in the court’s decision.

“These workers helped build the Spirit of Australia. Many worked decades, proud to play their part in delivering the safety and service standards that made Qantas a national icon.

“Delivering justice to these workers is just the first step in turning Qantas around – but there’s still a long way to go to bring back the Flying Kangaroo Australians used to love.”

According to Qantas, the fund – to be set up early next year – will pay workers directly, with compensation amounts covering both economic and non-economic loss as well as compensation to the TWU and any costs incurred in managing the distribution.

“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,” said Qantas Group CEO Vanessa Hudson.

“We know this has been a difficult period for those affected and are pleased we have been able to work closely with the TWU to expedite this process and resolve it ahead of Christmas.”

Labor Senator Tony Sheldon, a long-time critic of the airline, called the payouts “restitution for over a decade of corporate thuggery at Qantas”.

“In 2011, Qantas became infamous for locking out its workforce and stranding passages around the globe; in 2024, Qantas is finally being held to account for its culture,” he said.

“However, the fact that three Joyce-era directors remain on the Qantas board is a stain on the airline’s reputation. There needs to be a full clean-out.”

Three test cases for non-economic “hurt and suffering” in October were awarded $30,000, $40,000 and $100,000, respectively.