Qantas and the Transport Workers Union (TWU) have reached an agreement on compensation for former ground handlers impacted by the airline’s 2020 outsourcing decision.
The settlement, valued at $120 million, will see the establishment of a compensation fund. The fund managers will be responsible for distributing payments to the 1,820 affected employees.
This agreement follows the Federal Court’s landmark ruling in October 2024. This ruling found Qantas had unlawfully terminated the employment of three ground handlers.
The court’s decision set a crucial precedent, acknowledging the significant harm caused to the workers when their jobs were outsourced to a third-party contractor.
The compensation fund will be administered by Maurice Blackburn on behalf of the TWU. It will address both the economic and non-economic losses suffered by the former employees.
This includes factors such as lost wages, career disruption, and the psychological impact of job loss. The fund will also cover compensation to the TWU. This will reflect legal costs and expenses incurred in representing the workers throughout this lengthy legal battle.
Background to the Dispute
The dispute arose in 2020 when Qantas made the decision to outsource its ground handling operations to a third-party contractor. This move sparked widespread outrage and legal action from the TWU. The union argued that the outsourcing was unlawful and unfairly disadvantaged the workers.
The TWU contended that Qantas had not genuinely consulted with employees. It had failed to adequately consider alternative options, such as redeploying workers within the company.
The union argued that the outsourcing decision was primarily driven by a desire to cut costs and reduce employee entitlements. The decision was made on this basis, rather than genuine business necessity.
The legal battle that ensued was protracted and complex, with the TWU facing numerous legal hurdles. However, the union persevered, ultimately securing a significant victory in the Federal Court.
The court’s ruling not only vindicated the workers’ claims but also establishes an important legal precedent. It has relevance for future employment disputes involving outsourcing and worker rights.
Impact and Next Steps
This settlement marks a significant step towards closure for the 1,820 affected employees, many of whom have faced significant financial and emotional hardship since their jobs were terminated.
While the compensation fund will provide some financial relief, it cannot fully erase the impact of the job losses on the lives of these individuals.
The settlement also reinforces the importance of strong worker protections and the need for employers to act lawfully and ethically when making decisions that impact their employees.
The Federal Court’s ruling serves as a powerful reminder that workers’ rights must be upheld, and that employers cannot simply disregard the law and the well-being of their workforce in pursuit of short-term financial gains.
Looking Ahead
Looking ahead, a separate hearing will be held to determine the penalties that Qantas will be required to pay for its unlawful conduct. The outcome of this hearing will further underscore the seriousness of the company’s actions and serve as a deterrent to other employers who may be considering similar actions.
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