Qantas Agrees to AUD120M Settlement for Illegally Fired Workers
Qantas Airways has reached a significant settlement by agreeing to pay AUD120 million (USD75 million) to 1,820 ground workers it unlawfully dismissed in 2020. This agreement, announced on December 17, follows intensive negotiations between Qantas and the Transport Workers Union (TWU), marking a pivotal resolution to a prolonged labor dispute.
The settlement comes after an Australian Federal Court ruling in October that criticized Qantas for the illegal termination of its ground staff, which was part of a broader AUD1 billion (USD620 million) cost-cutting initiative attributed to the COVID-19 pandemic. The court found that Qantas had used the pandemic as a pretext to implement a pre-planned strategy aimed at reducing costs and diminishing union influence. This approach was deemed a violation of Australia’s Fair Work Act, leading to severe legal repercussions for the airline.
In late November, the DGCA issued the first show-cause notice to Akasa Air, another airline facing regulatory challenges. However, Qantas’s situation has been more prominent due to the scale of the dismissals and the subsequent legal battles. The Federal Court’s October 2024 ruling mandated individual compensation ranging from AUD30,000 to AUD100,000 (USD18,620-62,000) for each affected worker. These amounts were determined based on the likelihood that the workers would have been dismissed within twelve months regardless of the pandemic, given the existing cost-cutting measures. Additionally, the compensation includes non-economic losses such as hardship and distress experienced by the workers.
The negotiations between Qantas and the TWU were marked by significant delays and challenges, with the TWU initially declaring the talks at a stalemate just a week before the settlement announcement. The resolution involved creating a compensation fund managed by Melbourne-based legal firm Maurice Blackburn, which will handle the distribution of funds to the affected employees. This fund, set to be established in early 2025, will cover both economic and non-economic losses, TWU compensation, and the administrative costs associated with the payouts.
Michael Kaine, the TWU National Secretary, emphasized the importance of the settlement in restoring trust and stability within Qantas’s workforce. “Delivering justice to these workers is just the first step in turning Qantas around,” Kaine stated, highlighting the settlement as a crucial move towards rebuilding the airline’s reputation and workforce morale.
Vanessa Hudson, Qantas Group CEO, expressed the airline’s commitment to addressing the issue and extending sincere apologies to the affected workers and their families. “I want to reiterate our sincere apologies to those impacted and their families,” Hudson said. She underscored the settlement as a vital step in moving forward and improving the airline’s internal practices to prevent future occurrences of similar issues.
The legal battles culminated in Qantas losing both its appeals at the Federal Court appeals bench and the High Court, solidifying the court’s decision against the airline. This outcome not only imposed significant financial penalties on Qantas but also mandated substantial changes in the airline’s employment and operational practices.
The settlement marks a critical juncture for Qantas as it seeks to recover from the financial and reputational damage caused by the mass layoffs and ensuing legal disputes. By addressing the wrongful dismissals and compensating the affected workers, Qantas aims to rebuild its relationship with its workforce and regain the trust of its employees and the broader community.
This resolution also serves as a precedent for how airlines handle labor disputes in Australia, emphasizing the importance of adhering to fair employment practices, especially during times of crisis. As Qantas moves forward, the airline is expected to implement more robust policies to ensure compliance with labor laws and to foster a fairer, more transparent workplace environment.
Overall, Qantas’s agreement to pay AUD120 million to former ground workers represents a significant step towards rectifying past mistakes and demonstrating the airline’s commitment to ethical and lawful employment practices. This settlement not only resolves a major labor dispute but also sets the stage for Qantas’s efforts to rebuild and strengthen its operations in the competitive aviation market.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com