Qantas Settles for $76 Million with Illegally Fired Workers
Qantas Airways has agreed to pay AUD $120 million ($76 million) in compensation to 1,800 ground staff who were unlawfully dismissed in 2020, marking a significant settlement with the Australian Transport Workers Union (TWU). This resolution follows a protracted legal dispute that culminated in October 2024 when the Federal Court of Australia ruled that the dismissals across ten airports were illegal.
The airline’s decision to outsource these jobs to contractors was met with substantial backlash and legal challenges, leading to a landmark ruling where the court specified compensation ranging from AUD $30,000 ($20,000) to AUD $100,000 ($67,000) for three test cases. The TWU had estimated that total payouts would surpass AUD $100 million ($67 million), a prediction that aligns closely with the settlement announced.
This compensation fund, set to be established early in 2025, aims to cover both economic and non-economic losses suffered by the former employees. It also addresses compensation for the TWU and the administrative costs associated with distributing these funds.
Qantas Group CEO, Vanessa Hudson, expressed a renewed apology to the affected workers in a statement on December 17, 2024. “This is an important step in bringing closure to these individuals,” Hudson said. “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.”
The settlement has been heralded by the Australian Council of Trade Unions (ACTU) as the “largest case of illegal terminations in Australian industry.” ACTU Acting Secretary, Joseph Mitchell, praised the resolution as a “historic win for union members,” highlighting the role of the TWU in securing justice for the affected workers. “After years of Qantas fighting the Transport Workers Union in the courts, these union members will now finally be compensated for the enormous damage they suffered at the hands of the company under Alan Joyce,” Mitchell remarked.
The TWU also celebrated the victory on social media, stating, “Qantas will create a $120 million fund to compensate illegally outsourced workers after a four-year TWU court case. A huge congrats to these workers – that’s union power.”
This settlement not only closes a contentious chapter for Qantas but also underscores the significant impacts of corporate restructuring decisions on employees and the pivotal role of unions in advocating for workers’ rights. The case serves as a precedent in Australian industrial relations, emphasizing the legal and ethical obligations of employers in the management of their workforce.
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