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Australia’s national airline will pay $120 million in compensation to baggage handlers laid off at the height of the COVID-19 pandemic.
Qantas and the Transport Workers Union have struck a deal to create a $120 million compensation fund after the airline was found to have unlawfully sacked 1,820 workers in 2020.
The fund will be established in early 2025. and will be managed by law firm Maurice Blackburn, with compensation paid directly to affected ex-employees.
Qantas said the pool would cover both economic and non-economic losses of workers, union compensation and bills arising from the distribution of funds.
Qantas chief executive Vanessa Hudson said it was an important step towards closure for staff and apologized to those affected and their families.
“We know this is a difficult time for those affected and we are pleased that we have been able to work closely with TWU to expedite this process and resolve it before Christmas,” she said.
Many of the handlers have worked for Qantas for decades and have since endured a four-year legal battle, the union’s national secretary Michael Kane said.
“Delivering justice to these workers is only the first step in turning around Qantas,” he said.
“But there is still a long way to go to bring back the flying kangaroo that Australians loved.”
The airline sought to overturn two decisions handed down by the Federal Court that said the 2020 award of outsourcing baggage handlers, cleaners and ground staff is illegal.
The decision to outsource the rest of its ground handling function was said to have been made in August 2020 when “borders were closed, lockdowns were in place and no vaccine for COVID existed”.
The carrier, then under the control of Alan Joyce, lost billions of dollars during the pandemic as it decimated the aviation sector.
The High Court unanimously dismissed Qantas’ appeal, with Federal Court Judge Michael Lee ordering it to pay $170,000 in non-economic damages to cover injuries and suffering suffered by three test case workers.
“Never again can we see Joyce-style tactics used to destroy jobs and fight against workers who are paid fairly,” Kane said.
“It’s encouraging that new CEO Vanessa Hudson has agreed to set up a panel to ensure these workers get justice.”
The carrier has set aside cash reserves to cover future legal costs and awards, increasing it by $70 million from 2023 to 2024.
A separate Federal Court hearing will be held at a later date to determine the penalties.
Qantas was ordered to pay a $100 million fine in October after admitting it misled and defrauded customers by continuing to sell tickets for already canceled flights and delaying notifying booked customers that their flights were no longer operating.
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