- Qantas settles four year battle with TWU
- CEO apologises to former staff impacted
Qantas will pay 1,800 illegally fired ground and baggage handlers $120million after a four year landmark industrial relations battle finally ended.
The airline has confirmed that it has settled with the Transport Workers Union on Tuesday afternoon as chief executive Vanessa Hudson extended her apologies to former staff impacted.
‘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 in a statement published to the ASX.
‘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 decision to sack 1,683 cleaners, ground crews and baggage handlers in 2020 was under the helm of the airline’s former chief executive Alan Joyce.
Their jobs were outsourced to companies Swissport, Menzies and Dnata at a lower cost.
Qantas claimed the outsourcing was to save the airline $100million a year amid difficult market conditions due to Covid travel restrictions.
Negotiations between the carrier and TWU have dragged for four years with the Federal Court in October determining the workers’ termination was illegal.
Qantas will pay 1,800 illegally fired ground handlers $120million following the end of negotiations with the Transport Workers Union
Negotiations between Qantas and union have dragged for four years with the Federal Court in October determining the workers’ termination was illegal
Law firm Maurice Blackburn will oversee the compensation fund set to be established in ‘early 2025, and will be distributed across payment streams for economic losses and damages for hurt and suffering’.
Qantas will also be required to compensate the TWU for costs ‘incurred managing the distribution of the funds to individuals’.
TWU national secretary Michael Kaine said the outcome was a positive result for the former workers after ‘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.’
Qantas sacked 1,683 cleaners, ground crews and baggage handlers in 2020. Pictured are Qantas baggage handlers
It comes after three baggage handlers were awarded a total of $170,000 in damages by the Federal Court in October as a test case to determine potential compensation.
The airline was forced to pay an additional $120million in May after settling legal action launched by the Australian Competition and Consumer Commission.
Qantas had attempted to sell more than 86,000 ‘ghost seats’ across over 8,000 cancelled flights between May 2021 and August 2023.
Passengers who’d bought the affected tickets on domestic flights were awarded $225, while passengers on international flights were given $450.
