Qantas ordered to pay three workers $170k in compensation after they were illegally sacked

Qantas has been ordered to pay $170,000 to three employees in a major court decision that sets a precedent for the amount the airline owes to 1,700 other illegally retrenched employees.

Qantas employees who have been retrenched during the COVID-19 pandemic are a legal step closer to receiving significant compensation for the national carrier’s unlawful dismissals.

The Transport Workers’ Union has taken Qantas to federal court after the company decided to outsource almost 1,700 ground crew jobs in November 2020.

After layoffs began, these employees were all eventually kicked out of the airline in March 2021.

On Monday, Judge Michael Lee ordered Qantas to pay $170,000 to three employees who were used as test cases during a lengthy hearing in March and May.

In July 2021, the judge ruled that the dismissals were intended to deprive employees of the opportunity to negotiate a new enterprise agreement and as such were contrary to labor law.

The amounts received by these employees are expected to form the basis for the total amount Qantas is prepared to pay affected staff in future negotiations with the TWU.

Judge Lee found that employees would have been retrenched anyway by the end of 2021 as the airline focuses ‘laserishly’ on cost cutting without regard to its employees.

The case will return to court on November 15, when the judge will hear submissions on the total amount of compensation Qantas must pay.

The TWU is also demanding sanctions against the airline.

In December 2021, Judge Lee rejected a union bid to reinstate workers at Qantas after finding the proposal impractical.

Qantas unsuccessfully appealed the judge’s findings that the terminations were unlawful to the full Federal Court and the Supreme Court.

The airline previously argued that employees would have been retrenched in November 2020 anyway due to the crippling impact of Covid lockdowns on the travel industry and therefore should not receive compensation.

TWU assistant secretary Nick McIntosh said: “This is finally the day for justice for 1,700 employees who did nothing wrong and were illegally dismissed.”

The ruling means Qantas will likely have to pay tens of millions of dollars to the retrenched employees.

Mr. McIntosh stated that the union expects total compensation costs to exceed $100 million.

“We will say to the court that as this is the largest illegal plunder per country in Australia’s history, this should ultimately be worth more than $200 million,” he said.

“This should send a strong message to Australian business.”

The case will return to court in November.