Photo credit: www.investing.com

Court Orders Qantas Airways to Compensate Unlawfully Sacked Workers

SYDNEY (Reuters) – A recent ruling by the Federal Court in Australia has significant implications for Qantas Airways, as the airline is required to compensate three baggage handlers a total of A$170,000 ($114,000) for unlawful terminations that occurred in 2020. This decision raises the stakes in a broader legal case involving approximately 1,700 former employees affected by outsourcing practices.

Judge Michael Lee presided over the court case and determined that the airline must payout A$30,000, A$40,000, and A$100,000 to each of the three workers, acknowledging the “harm sustained” following their dismissals. Qantas had previously argued that these layoffs were necessary for cost-saving during the COVID-19 crisis, even fighting the issue through to the High Court.

In his ruling, Judge Lee noted that had Qantas chosen to outsource its ground handling operations lawfully in 2020, it would have proceeded with these changes in 2021, potentially saving around A$100 million annually. This acknowledgment underlines the controversial nature of the airline’s decisions during a tumultuous period.

While the ruling did not define a total compensation figure for all affected employees, it lays a framework for negotiations between Qantas and the Transport Workers Union (TWU) regarding future payouts. This latest ruling is part of Qantas’s efforts to navigate the ongoing fallout from its controversial actions taken during the COVID-19 pandemic, which has severely impacted its reputation.

In a related settlement, Qantas recently agreed to pay A$120 million to resolve a lawsuit brought forth by regulators over allegations that the airline sold tickets for flights that had already been canceled after international travel restrictions were lifted. Additionally, the airline faced scrutiny for attempting to influence government decisions regarding increased flight offerings by rival Qatar Airways.

Michael Kaine, the national secretary of the TWU, emphasized the need for Qantas to illustrate genuine change in its business practices. He stated, “After relentlessly prolonging this case and denying workers justice, Qantas must do everything in its power to ensure appropriate compensation.”

Newly appointed Qantas CEO Vanessa Hudson, who took on her role in November 2023, issued an apology to the affected workers, acknowledging the company’s responsibility to learn from these events.

The judge has directed Qantas and the TWU to engage in discussions concerning compensation for all dismissed employees and reconvene in court on November 15.

($1 = 1.4916 Australian dollars)

Source
www.investing.com