The Federal Court has ordered Qantas to pay compensation to around 1,700 former employees one year after ruling that the airline’s 2020 outsourcing decision breached the Fair Work Act.
The court outlined compensation based on three test cases, awarding non-economic loss of $30,000, $40,000, and $100,000 to the former workers.
Economic compensation is limited to 12 months, with these test cases guiding compensation for other affected individuals.
Following the ruling, Qantas said it accepted the decision, apologised to affected workers and pledged to expedite the compensation process.
The airline added that it is working with the Transport Workers’ Union (TWU) to accelerate the compensation through mediation.
It is also conducting an actuarial review to estimate the total payout, which the TWU confirmed to Karryon could amount to more than $100 million.
A separate hearing will determine further penalties at a date yet to be announced.
The Federal Court found that while Qantas had commercial reasons for the outsourcing, it also sought to prevent employees from exercising their rights to collective bargaining and industrial action.
“We sincerely apologise to our former employees who were impacted by this decision and we know that the onus is on Qantas to learn from this,” Qantas Group CEO Vanessa Hudson said.
“We recognise the emotional and financial impact this has had on these people and their families. We hope that this provides closure to those who have been affected.”
In response to the ruling, the TWU flagged the significant hardships faced by affected workers, including mental health struggles and difficulties finding new employment.
According to the union, the case is considered the largest instance of illegal sackings in Australian history.
“Qantas says it’s turned over a new leaf. Well, it’s time to prove it. After relentlessly prolonging this case and denying workers justice, Qantas must do everything in its power to ensure appropriate compensation to workers. They should not have to suffer a day longer after the last four years of anguish,” TWU National Secretary Michael Kaine stated.
“It’s astounding that Qantas attempted to argue it should not pay a dollar of compensation to workers it illegally sacked to prevent them accessing workplace rights.
“It was an added kick in the guts after the pain and suffering the airline has caused to these workers and their families. The Federal Court has rejected this argument, and delivered justice to the workers by ordering Qantas compensate them.”
The TWU also used the ruling to urge reform within the aviation sector.
“To rebuild our essential aviation industry, workers, passengers and the community need a voice through an independent regulator,” Kaine said.
“The TWU is using new laws passed by the Albanese government to start the process of rebuilding decent, secure aviation jobs and will continue to campaign for a Safe and Secure Skies Commission to rebalance aviation and ensure it meets the needs of the nation.”
According to the ABC, ex-Qantas worker Don Dixon said the decision was bittersweet.
“Working for Qantas, we were family … it’s sad in one way but it’s jubilant in all the other ways,” he said outside the Federal Court.
“We stood up and fought. Every Australian now should say, you know what, this is the spirit of Australia – you dig in when it gets tough and you don’t give up, and here we are today having a massive victory.”
Earlier this month, Federal Court approved a compensation deal struck between Qantas and the Australian Competition and Consumer Commission (ACCC) that will see the carrier pay affected customers up to $450 each for cancelled flights.
This follows a ruling in May that ordered the flying kangaroo to pay $100 million in penalties for misleading consumers by selling tickets for flights that it had already decided to cancel.
