'I want to reiterate our sincere apologies to those impacted and their families,' Qantas CEO says
Australian flag carrier Qantas has agreed to pay a total of $120 million in compensation to former ground handlers who were found to have been illegally sacked by the airline when it decided to outsource staff in 2020.
A compensation fund, which will be administered by Maurice Blackburn on behalf of the Transport Workers Union (TWU), will be established in early 2025 for the payment.
The compensation will be paid directly to the 1,820 former employees who were impacted, with the final compensation to cover economic and non-economic loss, compensation to the TWU, as well as the costs incurred in managing the distribution of funds to the individuals.
Vanessa Hudson, CEO of Qantas Group, called the development an "important step" in bringing closure to the affected former employees.
"I want to reiterate our sincere apologies to those impacted and their families," Hudson said in a statement.
"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."
The establishment of the compensation fund comes after the Federal Court set out principles for compensation based on three "test case" employees.
It also follows the four-year legal battle against Qantas over its move to outsource ground crew, including baggage handlers, in 2020 despite laying off thousands of other staff at 10 Australian airports because of COVID-19.
Qantas attempted to appeal the previous verdicts issued by the Federal Court, which were eventually upheld by the High Court.