Qantas and Australia's Transport Workers Union (TWU) have reached an agreement on the payment of compensation to former ground handlers who were impacted in 2020 by the airline’s decision to outsource, with compensation totalling A$120 million ($76.2 million).
Following an Australian federal court ruling in October, regarding compensation for three test case employees, Qantas and the TWU have agreed to establish a compensation fund which will be administered by Maurice Blackburn on behalf of the TWU, to pay compensation to 1,820 impacted former employees.
The fund will be established in early 2025, from which compensation will be paid directly to the former employees.
In October compensation for three test case employees totalled A$30,000 ($19,000), A$40,000 ($25,344) and A$100,000 ($63,360) based on individual circumstances.
“This is an important step in bringing closure to these individuals," said Qantas Group CEO Vanessa Hudson. “We know this has been a difficult period for those affected and we are pleased we have been able to work closely with the TWU to expedite this process and resolve it."
The Australian council of trade unions (ACTU) has welcomed the settlement in what they have described as “the largest case of illegal terminations in Australian history.”
The ACTU’s acting secretary, Joseph Mitchell, called the victory “historic” and congratulated the transport workers union on the ruling. “After years of Qantas fighting the transport workers union in the courts, these union members will now finally be compensated for the enormous damage they suffered,” he added.
Incremental changes to the provision will be recognised in the company’s interim financial report for the first half of 2025, set to be released in February. A separate hearing will be held to determine penalties at a date to be advised by the Australian federal court.