Qantas will be forced to pay more than 1800 illegally sacked ground handlers a total of $120m, ending a four-year legal saga and landmark industrial relations battle.
The airline confirmed details of its settlement with the Transport Workers Union in a statement published to the ASX on Tuesday afternoon following the end of trading.
Qantas Group boss Vaness Hudson reiterated her apologies to the affected workers.
“This is an important step in bringing closure to these individuals and I want to reiterate our sincere apologies to those impacted and their families,” she said.
“We know this has been a difficult period for those affected and are pleased we have been able to work closely with the Transport Workers Union to expedite this process and resolve it ahead of Christmas.
The hefty payout follows lengthy negotiations and a protracted legal battle with the Transport Workers Union, which included an attempt to overturn the decision in the High Court.
Cost-cutting measures to sack the 1683 workers across 10 Australia airports in 2020 was made under the leadership of former chief executive Alan Joyce, with the airline then outsourcing staff at a cheaper cost.
Qantas has been ordered to pay nearly 1700 former workers a total of $120m. Picture: NewsWire/ Luis Enrique Ascui
The fund will be established in “early 2025, and will be distributed across payment streams for economic losses and damages for hurt and suffering,” Qantas confirmed in the statement.
Part of the payout also includes compensations to the TWU, plus costs “incurred managing the distribution of the funds to individuals”.
In October three baggage handlers were awarded a total of $170,000 in damages by Federal Court judge Michael Lee, and paid $30,000, $40,000 and $100,000 as a test case to determine potential compensation.
It’s understood compensation for the remainder of the workers could vary between these figures.
Following the October determination, Ms Hudson apologised to the former staff and said the airline would work to issue the payments promptly.
“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,” she 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.”
Earlier this year in May the airline also stymied up $120m to settle a legal suite launched by the ACCC after the airline attempted to sell more than 86,000 “ghost seats” across more than 8000 cancelled flights between May 2021 to August 2023.
Affected passengers on domestic flights were awarded $225, while passengers on international flights were given $450.
At the close of markets, Qantas was trading 1.9 oer cent higher to $9.07.
More to come