Qantas has agreed to establish a $120 million compensation fund for 1,820 workers whose jobs were unlawfully outsourced in 2020. 

A four-year legal battle by the Transport Workers’ Union (TWU) has culminated in a Federal Court ruling against the airline.

The case marks the largest instance of illegal job terminations in Australian history. 

The Federal Court found that the outsourcing breached the Fair Work Act by preventing the workers from engaging in collective bargaining and industrial action. 

After failed appeals, including a unanimous High Court ruling, the compensation process began.

TWU National Secretary Michael Kaine has commended the resilience of the affected workers, many of whom endured financial and emotional hardship. 

“These workers helped build the Spirit of Australia. Many worked decades, proud to play their part in delivering the safety and service standards that made Qantas a national icon,” Kaine said. 

He described the settlement as a step toward justice but emphasised the need for structural changes to prevent such events in the future.

The Federal Court determined compensation for both economic and non-economic losses, with non-economic damages ranging from $30,000 to $100,000 in test cases. 

aQantas subsequently agreed to the TWU’s proposed $120 million fund, which will be administered by Maurice Blackburn Lawyers. Payments are expected to begin this year.

Qantas CEO Vanessa Hudson apologised for the distress caused, saying; “We know this has been a difficult period for those affected and are pleased we have been able to work closely with the TWU to expedite this process”.

The TWU has called for broader reforms, including a Safe and Secure Skies Commission, to uphold aviation standards and worker protections. 

Kaine emphasised the need to “ensure Joyce-style tactics” do not recur, referencing decisions made under former CEO Alan Joyce.

The fund underscores the financial implications of the outsourcing decision, which Qantas had initially budgeted at $70 million. 

With additional penalties pending, the total cost is expected to rise further.

The Federal Court is yet to determine penalties for Qantas’ violations.

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