Qantas faces a massive payout expected to exceed $100 million as it prepares to deal with the fallout from its decision to unlawfully sack nearly 1,700 baggage handlers in 2020.
Judge Michael Lee ruled Monday that the three test cases should receive damages of $30,000, $40,000 and $100,000 respectively. The court ruled that they suffered varying degrees of “non-economic loss,” which refers to the hardship and suffering caused by the airline.
Many workers can also claim financial losses related to lost wages.
Lee ordered Qantas and the Transport Workers’ Union to mediate using test case amounts to inform the total spend, which both sides will report early next month.
He found that those workers would have been laid off a year later in 2021 anyway, as airlines’ laser-like focus on cost-cutting limited the economic component of payroll calculations.
The Federal Court found that the outsourcing measure was unlawful because it breached protections under the Fair Work Act, in part to avoid strikes.
Qantas unsuccessfully appealed the decision to the full bench of the Court and later to the High Court.
About 20 former Qantas employees were in a Sydney court to hear the verdict on Monday, with Lee pointing out the costs of litigation and the use of court resources were extremely expensive.
“Significant legal fees have been spent, particularly by Qantas, which has employed at least five senior lawyers in the course of the case, as well as numerous lawyers from one of Australia’s most reputable law firms,” Lee said.
Qantas has previously set aside $70 million in its accounts to cover any liabilities.
Transport Workers Union national assistant general secretary Nick McIntosh said compensation could total more than $100 million.
In addition to compensation, the union is also seeking a fine against Qantas.
TWU national secretary Michael Kaine said Qantas needed to show it had “turned a new leaf”.
“After relentlessly delaying this case and denying workers justice, Qantas must do everything it can to ensure workers are provided with appropriate compensation,” Kane said.
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“After the pain they have endured for the past four years, they should not have to suffer another day.”
Qantas chief executive Vanessa Hudson said in a statement that the airline would “work hard to expedite payments”.
“We sincerely apologize to our former employees affected by this decision and we know Qantas has a responsibility to learn from this,” Hudson said.
“We recognize the emotional and financial impact this has had on these individuals and their families. We hope this provides closure to those affected.
The pre-sentence compensation hearing focused on what would have happened if the illegal outsourcing had not occurred.
The court also heard that some workers suffered severe psychological distress after losing their jobs and had to take medication to cope.
Former Qantas employee Damian Pollard said outside court that over the past four years he had received hundreds of calls from colleagues “who were experiencing personal problems and mental health issues caused by Qantas’ actions.” question”.
He said the court’s decision “kind of facilitates our recovery from all this and hopefully allows us to get on with our lives”.
Australia’s largest airline has shrugged off the disruption of the pandemic with record profits, but its reputation has been tarnished by a series of scandals that led to the early retirement of its chief executive, Alan Joyce.
This month, the Federal Court approved a $100 million fine from regulators against Qantas over the airline’s sale of thousands of tickets for canceled flights.
