In a landmark decision that has sent ripples through the Australian aviation industry, Qantas Airways has agreed to pay a staggering $120 million in compensation to over 1800 workers it unlawfully outsourced during the tumultuous times of the pandemic.
The saga began when the national carrier outsourced baggage handlers, cleaners, and ground staff in 2020. This decision was met with immediate backlash and legal challenges, leading to a protracted battle in the courts. The Federal Court’s ruling in October, which ordered Qantas to pay three former employees a combined $170,000 in a test case, set the precedent for the subsequent compensation agreement.
The High Court’s decision to uphold the ruling that Qantas had acted unlawfully was a pivotal moment, affirming the rights of workers and the responsibilities of employers. Under the agreement reached with the Transport Workers Union (TWU), Qantas will establish a fund early next year to compensate the 1820 ex-workers affected by the decision made during the pandemic.
Qantas chief executive Vanessa Hudson expressed her apologies, acknowledging the hardship faced by those affected and their families. ‘This is an important step in bringing closure to these individuals,’ Hudson said. The airline’s commitment to resolving the issue ahead of Christmas was also emphasised, offering a semblance of solace to those who have endured a long and challenging period.
The TWU has hailed the agreement as a ‘huge result from members’ unity over a four-year court battle,’ showcasing the power of collective action and the importance of union representation. The union’s relentless pursuit of justice for its members has culminated in a significant financial settlement and a precedent for fair treatment of workers.
The financial implications for Qantas are notable, with the airline allocating an additional $70 million towards expected costs related to the case, as reported in its 2024 annual report. This allocation contributed to a drop in profit from $1.7 billion to $1.25 billion this year, highlighting the economic consequences of the airline’s unlawful actions.
We’d love to hear your thoughts on the Qantas outsourcing situation. What are your views on the compensation agreement reached with Qantas? Share your thoughts in the comments below and join the conversation on workers’ rights and corporate accountability.
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