Qantas to pay 1820 ousted workers $120m for illegally outsourcing jobs during Covid

Qantas will have to pay 1800 former workers a total of $120m after it was found to have illegally sacked and outsourced baggage handlers during the pandemic.

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.

TWU national secretary Michael Kaine paid tribute to the former Qantas workers who he said had been through “ four gruelling years of this court battle”.

“They’ve stood by each other during what for some has been the most difficult times of their lives, through family breakdowns, financial stress and mental hardship,” he said.

“These workers helped build the Spirit of Australia. Many worked decades, proud to

play their part in delivering the safety and service standards that made Qantas a national icon.”

Earlier this year in May, the airline was also forced to pay $120m to settle legal action 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.