Qantas CEO ordered into mediation with TWU to decide compo for sacked workers

The Federal Court has ordered Vanessa Hudson to take part in mediation with the TWU to decide compensation for 1700 sacked employees.

Qantas CEO Vanessa Hudson has been ordered to take part in mediation with the Transport Workers Union to determine compensation for 1700 workers whose jobs were illegally outsourced. Picture: NCA NewsWire/Christian Gilles

The Federal Court has ordered Qantas CEO Vanessa Hudson to attend mediation with the Transport Workers Union to decide compensation for 1700 people whose jobs were illegally outsourced by the airline during the Covid pandemic.

The long-running battle returned to the Federal Court on Wednesday after Qantas exhausted all avenues for appeal when the High Court upheld previous rulings in favour of the TWU.

Barrister for the TWU, Mark Gibian, pushed for the compensation matter to be decided in an open court rather than mediation to ensure transparency for the workers involved.

But Federal Court justice Michael Lee said that would be a more costly path for the parties, and would place a drain on the resources of the court.

He ordered the mediation to begin on Monday with a view to finalising the matter by the next case management hearing on October 27, 2023.

“I also have a very strong view about the need for people to be invested in this process at the highest levels,” said Justice Lee.

“So I propose making an order that the mediation session be attended in person by no more than one senior and junior counsel and two solicitors on behalf of each of the applicants and respondent and persons with the authority to settle the claim of statutory compensation on behalf of all parties including the secretary of the (TWU) Mr Kaine and chief executive of the respondent Ms Hudson.”

Qantas’ barrister Richard Dalton argued that Andrew Finch, the in-house head legal counsel for Qantas was willing to attend the mediation with authority to settle.

“We would ask that his name be put in the place of Ms Hudson,” said Mr Dalton.

Justice Lee responded that he “did not want it to be attended to by a lawyer”.

“I want the chief executive officer to be present together with the person leading the union. That in my view is appropriate in escalating is to an appropriate level to maximise prospects of settlement.”

Qantas was found to acted in breach of the Fair Work Act when it outsourced the jobs of almost 1700 baggage handlers, ramp crew and cleaners at the height of the Covid pandemic. Picture: NCA NewsWire/Dan Peled

He clarified he would not expect Ms Hudson and Mr Kaine to attend every session but at least one.

Ms Hudson has kept a low profile since taking over from Alan Joyce earlier this month, and did not comment when the High Court delivered its finding in the outsourcing case last week.

Former Chief Justice of the Federal Court James Allsop AC was nominated as the mediator in

the matter, as someone “of stature and experience”, Justice Lee said.

He also stressed that it was his desire to see the issue of compensation dealt with as quickly as possible, given it had been almost three years since the workers in question lost their jobs.

‘I’m very conscious of the fact I delivered a series of judgments very quickly and got the matter on very quickly and it’s been delayed considerably by reason of appeals,” said Justice Lee.

“There’s 1700 people whose lives have been affected together with their families and I wish to ensure the matter is resolved as soon as I can.”

The TWU previously indicated they would be seeking significant compensation for the workers as well as a large penalty in the vicinity of $100m against Qantas.

The embattled airline was also facing court action by the Australian Competition and Consumer Commission over allegations it sold tickets on already cancelled flights in the first half of 2022.

ACCC chair Gina Cass-Gottlieb had signalled she would be seeking a penalty of more than $250m against Qantas if the allegations of “false, misleading and deceptive conduct” were proven.

Federal Court Justice Helen Rofe issued orders on Tuesday for the ACCC to provide more information to Qantas ahead of a hearing on November 8.