Qantas Liable for A$150mn Compensation Payment to Ground Workers

The Australian Federal Court has ruled that Qantas Airways must pay compensation for the unlawful dismissal of 1,683 ground workers in 2020. Justice Michael Lee, in his judgment on October 21, 2024, directed Qantas and the Transport Workers’ Union (TWU) to negotiate the final compensation amount. This ruling follows a 2021 decision that found Qantas had illegally outsourced these workers’ jobs, reported ch-aviation.com.

Justice Lee’s ruling calculates Qantas’ potential liability at over AUD150 million (USD100.5 million). The judgment outlines both economic and non-economic damages. For economic losses, Justice Lee based his calculations on the average annual salary of AUD50,000 (USD33,500) for the affected workers. This alone accounts for AUD85 million (USD57 million) of the total compensation.

In terms of non-economic losses, Justice Lee reviewed three test cases. He determined the amounts payable at AUD30,000 (USD20,000), AUD40,000 (USD26,750), and AUD100,000 (USD67,000), respectively, depending on the severity of the impact on the individual workers. These calculations helped determine the broader compensation framework for the entire affected group. Lee acknowledged that the compensation would have been higher if not for his agreement that the jobs would likely have been outsourced within 12 months.

Qantas has already set aside AUD70 million (USD47 million) to address the compensation claims. The airline’s CEO, Vanessa Hudson, who took over last year, issued an apology for the unlawful sackings. Hudson promised to expedite compensation payments and expressed regret for the protracted legal proceedings. After the ruling, Qantas again reiterated its commitment to resolving the issue promptly.

Michael Kaine, President of the TWU, emphasized the need for Qantas to prove its commitment to making amends. “Qantas claims it has turned over a new leaf, but it’s time for them to back that up by providing full compensation to the workers,” Kaine said. The TWU has been seeking a total damages payment of approximately AUD200 million (USD134.5 million), but the court’s current focus is on finalizing the precise compensation figures.

Justice Lee’s ruling urged both parties to settle the matter and avoid further prolonged legal battles. He noted that significant legal expenses had already been incurred, particularly by Qantas, which engaged multiple senior counsel and solicitors for the case. The judge expressed hope that the parties could find common ground in the upcoming negotiations to reach a fair settlement, given the long legal proceedings already undertaken.

If mediation fails to produce an agreement, Justice Lee stated that the court would require both parties to submit their estimates for the total compensation amount. The case will be relisted on November 15, 2024, for further proceedings.

In response to the ruling, Qantas confirmed its commitment to the mediation process. “Qantas has sought the TWU’s cooperation in accelerating compensation payments, and we will begin mediation soon. An actuarial review is also underway to estimate the final compensation figure,” the airline said in its statement.

This court ruling marks a significant moment in the years-long dispute between Qantas and its former workers, as the airline now faces a substantial financial settlement for its past actions.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com