Qantas has agreed to pay A$120 million in compensation to 1,820 ground crew workers unlawfully dismissed during the COVID-19 pandemic, following a protracted legal battle in the Federal Court.
The resolution concludes another chapter in the airline's efforts to rebuild trust with its workforce under new leadership.
Non-economic harm addressed
The payout will compensate affected workers for economic loss and non-economic harm, including hurt and suffering, with the final compensation figure for each individual capped at around 12 months’ pay, as determined by the court.
The Federal Court ruled in October 2024 that Qantas must compensate workers based on test cases, awarding sums ranging from A$30,000 to A$100,000 for non-economic losses.
The compensation fund, set to be established in 2025, will be administered by the personal injury law firm Maurice Blackburn.
Payments will be distributed to workers whose roles were outsourced by Qantas in 2020, which was deemed illegal by the High Court of Australia in 2023.
This settlement concludes a four-year legal dispute initiated by the Transport Workers Union (TWU), which challenged Qantas’s outsourcing of ground-handling roles.
The court determined that only workers dismissed by late 2021, whose positions were outsourced, would be eligible for compensation.
Union costs covered
Payouts will also cover costs incurred by the TWU in pursuing the case and distributing funds to affected employees.
The TWU described the outsourcing as "the largest case of illegal sackings in Australian history”.
The union also pointed to the reputational and financial consequences faced by Qantas and called for further reforms to protect workers' rights in the aviation industry.