Qantas apologises as Federal Court sets out compensation ruling

Australian flag carrier Qantas has issued an apology to former employees who have been affected by its move to unlawfully outsource 1,700 jobs in 2020.

In a statement, Qantas Group CEO Vanessa Hudson said they know the onus is on the organisation to learn from the case.

"We sincerely apologise to our former employees who were impacted by this decision," Hudson said. "We recognise the emotional and financial impact this has had on these people and their families. We hope that this provides closure to those who have been affected."

Principles for compensation

Her apology came after the Federal Court set out the principles for compensation for almost 1,700 team members based on three "test case" employees.

Justice Michael Lee ordered the airline to compensate three former employees a total of $170,000 based on "test cases." The compensation is allocated as $30,000, $40,000, and $100,000 for non-economic losses.

"I consider that the ... amounts of compensation for non-economic loss reflect the harm sustained by each of the three individuals in a way that is appropriate, just and rational," Lee said as quoted by ABC News.

The Federal Court ruling has also required lawyers for both Qantas and the Transport Workers' Union (TWU) to negotiate a final compensation figure for the income lost by the 1,700 affected employees.

The figure will be capped at around 12 months' pay, as Lee agreed with Qantas that these employees would likely have been dismissed by late 2021, with their roles subsequently outsourced.

"My desire is for the court to move quickly to resolve any penalty and the balance of compensation issues," Lee said. "Apart from any public benefit, 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."

Qantas, TWU to work on compensation figure

Qantas said it has sought the assistance of the TWU to expedite the compensation, adding that it is also carrying out an actuarial review to develop an estimate of the likely total compensation amount payable.

Meanwhile, TWU assistant secretary Nick McIntosh said the ruling is not just a victory for the workers and the union.

"It is a victory for every working person in this country and is also a message to corporate Australia — a message that says 'if you treat workers this way, if you think you can get away with the biggest illegal sacking of workers in Australian history, then guess what? Think again,'" McIntosh said as quoted by ABC News.