In a landmark decision, more than 1800 Qantas ground staff who were unlawfully dismissed during the COVID-19 pandemic are set to receive a share of a $40 million Federal Court payout. Justice Michael Lee ruled on Tuesday that the remaining $40 million of a total $90 million penalty imposed on the airline must be distributed directly to the affected workers.
A Five-Year Legal Battle Concludes
The ruling brings to a close a protracted five-year legal fight between the Transport Workers' Union (TWU) and Australia's largest airline. Earlier this year, the Federal Court ordered Qantas to pay $50 million of the $90 million penalty to the union itself. The court found that Qantas acted unlawfully in 2020 when it outsourced its baggage handlers, cleaners, and ground staff, a move judged to be designed to curb union bargaining power during wage negotiations.
The court determined the airline's actions breached the Fair Work Act and inflicted significant economic and personal hardship on the employees. Qantas attempted to appeal the decision through both the full bench of the Federal Court and the High Court but was unsuccessful at every turn.
Payments and Compensation for Workers
Each wrongfully dismissed employee will first receive an emergency payment of $3333 before Christmas. The remainder of the $40 million will then be paid on a pro-rata basis, calculated according to individual entitlements. This court-ordered penalty is separate from a $120 million compensation fund Qantas had already established to cover economic loss, pain, and suffering.
The TWU will administer the distribution of the $40 million, with Qantas stating it has no role in the process. The airline noted it had already paid the $120 million into a fund managed by law firm Maurice Blackburn for all affected former employees.
Apology and Aftermath
In a statement issued in August, Qantas Group CEO Vanessa Hudson offered a sincere apology. "We sincerely apologise to each and every one of the 1820 ground handling employees and to their families who suffered as a result," Hudson said. "The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families."
The TWU hailed the final ruling as a moment of justice. "This is a moment of justice for loyal workers who loved their jobs at Qantas," the union stated. "The judgment marks the end of a David-and-Goliath five-year battle and vindicates workers whose decision to fight the case was derided and mocked by Qantas management from day one."
The union also highlighted that the prolonged legal struggle compounded the distress of workers, many of whom faced severe financial stress, family breakdowns, and mental health challenges following their dismissal.
This case is one of several legal challenges Qantas has faced recently, including a high-profile case where it admitted to selling tickets for cancelled flights, resulting in a separate $100 million penalty.
