Qantas has agreed to compensate workers it unlawfully sacked during the pandemic

It’s the first compensation decision in a long-running unfair dismissal case after Qantas was found guilty of unlawfully firing 1,700 baggage employees during the pandemic.

Qantas has agreed to compensate workers it unlawfully sacked during the pandemic

Thehas ordered Qantas to pay three former employees a total of $170,000 in compensation.

It’s the first compensation decision in a long-running unfair dismissal case after Qantas was found guilty of unlawfully firing 1,700 baggage employees during the pandemic.

The Transport Workers Union (TWU) has suggested it could cost Qantas $100 million to compensate all impacted workers.

Here’s the latest.

Background

, Qantas fired some 1,700 baggage staff across 10 airports, before outsourcing their work to third-party contractors.

In an unfair dismissal case launched by the TWU, Qantas argued it was “bleeding cash” during COVID-19 and wanted to save money by outsourcing.

The TWU, which represented many of the staff, had successfully argued the move was a breach of workers’ legal rights. Qantas failed to appeal the decision twice.

Employees

In the Federal Court this week, Justice Michael Lee decided how much three employees – fired between March and April of 2021 – should be compensated.

All three were in their 50s, and two had been Qantas employees for over 20 years.

The first employee developed “a major psychiatric illness” that affected his “life to a substantial degree.”

He experienced symptoms of “major depression” and “increased problematic alcohol use” which “persisted for many months”.

The second employee described “significant distress and emotional hurt“ that led to ”a decline in her physical health, an inability to eat, feelings of nausea, and trouble sleeping.”

She said this directly affected her relationship with her husband and children.

While the third employee did not develop a mental ill-health condition, Lee found the impact on him was “appreciable”.

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Compensation

Lee found Qantas should compensate the employees for “non-economic losses”.

This includes the “distress, hurt, humiliation or other emotional harm” they experienced after being fired.

While Lee said it’s “impossible to precisely translate” these losses “into a monetary sum”, he aimed to do “the best that [the Court] can” to fairly compensate them.

Compensation amounts for the other affected former employees will be based on the outcomes of these three “test case” individuals.

Lee said he “encourages both parties to settle their litigation”.

“Finality would help bring a degree of closure to those affected workers who have been wronged, particularly for those who experienced emotional and financial stress,” Lee said.

Qantas

Qantas has apologised to impacted former employees, saying it accepts the court’s decision.

In a statement, CEO Vanessa Hudson said she recognises “the emotional and financial impact this has had on these people and their families” and that the onus of responsibility lies with the airline.

The airline said it’s working with the union to “speed up” payments and has launched a review to begin calculating future compensation payments.

Union

The TWU said these former employees have “been vindicated” after “Qantas dragged them through the courts” for years.

TWU National Secretary Michael Kaine said they were “victims of a systematic attempt” by Qantas to stifle their workplace rights.

“Qantas says it’s turned over a new leaf. Well, it’s time to prove it… Qantas must do everything in its power to ensure appropriate compensation to workers,” Kaine said.

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