Qantas is facing Federal Court proceedings to determine the penalty for unlawfully outsourcing its ground handling roles during the pandemic, with the Transport Workers’ Union (TWU) calling for the maximum fine, in addition to $120 million in compensation for affected employees.
Qantas will today (19 May) begin Federal Court proceedings to decide its penalty for illegally outsourcing ground handling roles mid-pandemic.
“The penalty to Qantas must reflect this and send a message to every other company in Australia that you cannot sack your workers to prevent them from using their industrial rights.
Qantas had earlier argued that it had no choice but to remove the roles due to the uncertainty of COVID-19 and the potential $100 million a year cost savings the move could bring.
However, it eventually agreed to set up a fund following the High Court ruling, which is administered by Maurice Blackburn Lawyers on behalf of the TWU, to compensate the 1,820 affected workers.
The final figure includes the approximately 1,700 workers who lost their jobs, and around 120 who were redeployed within Qantas and suffered non-economic losses.
According to Qantas, the fund will pay workers directly, with compensation amounts covering both economic and non-economic loss, as well as compensation to the TWU and any costs incurred in managing the distribution.
“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,” Qantas Group CEO Vanessa Hudson said.
“We know this has been a difficult period for those affected and are pleased we have been able to work closely with the TWU to expedite this process and resolve it ahead of Christmas.”
Before the final court ruling, Qantas, under the leadership of former CEO Alan Joyce, strongly argued against the idea that it had committed any wrongdoing with its decision to outsource roles.
In December 2020, for example, it issued a furious, 600-word response that compared the union claims with “facts”.