QANTAS: Illegally sacked workers get AU$120 million compensation payout

1800 illegally sacked workers will be paid AU$120 million to settle a compensation claim over the illegal sacking of ground staff in 2020. Qantas resisted right up to the High Court before it agreed to the payments under new CEO Vanessa Hudson.

The amount of compensation was negotiated between Qantas and the Transport Workers Union. The resolution is timely, occurring before Christmas.

Still to come is the fine for the illegal sacking imposed by the Federal Court. This is expected to be the maximum of AU$100 million. The case represents the largest illegal sacking in the history of Australia.

Alan Joyce legacy

What could cost Qantas over AU$200 million is the legacy of Alan Joyce’s reign. A hallmark of his leadership was industrial relations, always tackled fairly aggressively. Arguably warranted at certain times, this approach seems to have been softened under new CEO Venessa Hudson.

The AU$120 million payday will be split between workers, with the worst affected receiving an unprecedented AU$100,000 each. Qantas argued that non-economic loss payments should be much more limited. The court rejected this argument that the affected workers would have been made redundant anyway if not sacked illegally and prematurely.

Justice Lee of the Federal Court did limit the payment, as the affected workers could have only expected an additional 12 months of employment before their work was outsourced.

2PAXfly Takout

The TWU has won its case from the beginning through appeals right up to the High Court. I hate to think about how much Qantas has spent on legal fees and how much it will need to repay the union for its lawyers.

This is a very sad chapter in Qantas history. It can be seen as an important contributing factor to the early demise of ex-CEO Alan Joyce and Board Chairman Richard Goyder. It certainly damaged their reputations.

Let’s hope that the airline’s largely new management crew pursues a more harmonious and profitable approach to industrial relations in the future.