Federal court finds in favour of Qantas workers after 2020 sackings

QANTAS TWU COURT

Ex employees of Qantas celebrate with their legal team as they depart the Federal Court of Australia in Sydney, Monday, October 21, 2024. AAP Source: AAP / STEVEN MARKHAM/AAPIMAGE

Qantas will be hit a compensation payout in the tens of millions - over the illegal mass sacking of ground crew workers during the pandemic. After last year's high court decision, a Judge has now ordered the airline to pay $170,000 to three individuals over the personal toil caused by the layoffs. And to negotiate with unions about compensation for another 1700 workers.



The ground staff wrongly sacked by Qantas, walk out of Sydney's Federal Court.

After hearing the news their personal struggles would not be ignored.

Don Dixon was one of those whose jobs were illegally outsourced in August 2020.

"It's sad in one way but its jubilant in all the other ways, we stood up and we fought. Every Australian now should say, y'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."

The Federal court found in the workers favour in 2021, but Qantas unsuccessfully appealed the ruling in the High Court.

The decision by Justice Michael Lee will see Qantas pay additional compensation - factoring in the personal cost to workers.

Here's Maurice Blackburn lawyer Josh Bornstein.

"Over the last four years, Qantas has resisted this day, through a succession of unsuccessful appeals. And it's argument that no compensation should be ordered today by the Federal Court was completely rejected."

After examining three workers as test cases - to determine the range of "Non-Economic Loss", the court ordered Qantas to make individual payouts between $30,000, $40,000 and $100,000.

The airline and the unions have been ordered to conduct mediation to determine how much the 1700 former employees are entitled to.

Nick McIntosh is the New South Wales assistant secretary of the Transport Workers Union.

"So we estimate, This is probably worth, in excess of $100 million, this global compensation figure. Clearly its going to be dependent on different individual cases. The really crucial element though is that non economic loss. This is tax free money, in recognition of people's hardship and distress suffered. This will make a big difference to every one of the 1700 people."

Former Qantas employee Damien Pollard says the compensation will help colleagues get closure over their ordeal.

"I've spent the last four years fielding hundreds of phone calls from my members in Canberra, people that going through personal problems, mental health issues that were caused by the decision. So today's judgement by Justice Lee goes some way to facilitating a little bit of recovery and hopefully move on with their lives."

The airline will also have to pay compensation for the economic impact of retrenchment.

But Justice Michael Lee agreed with the airline that should be limited to 12 months pay, including benefits, finding the airline would have cut their jobs by the end of 2021 anyway.

Qantas said it was committed to expediting the compensation process for those employees.

In a statement, CEO Vanessa Hudson said the airline sincerely apologises to its former employees.

The judgment covers only compensation for workers, Qantas is also on the hook for a substantial financial penalty over the illegal actions - yet to be determined by the court.

Mr McIntosh says the union will push for the maximum $100 million fine to be applied.

"This should be worth more than $200 million when all is said and done at the end of this, this needs to send a powerful message to corporate Australia, you can not treat workers like this, you cannot get away scot-free if you do this."

Qantas is now checking its books to determine just how much it can afford to pay.

The airline's board due to face shareholders in Hobart, this Friday.

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