Qantas Group has apologized to former ground handling employees following the Federal Court’s ruling on compensation relating to its controversial outsourcing decision during the COVID-19 pandemic in November 2020. The company is committed to expediting payments and is working with the Transport Workers’ Union (TWU) to speed up the process.
Vanessa Hudson. » She acknowledged the emotional and financial strain suffered by the nearly 1,700 former employees and their families. Hudson hopes this solution can provide a sense of closure for those affected.
The Federal Court established a framework for compensation based on three “model cases”. The noneconomic loss amounts were set at $30,000, $40,000 and $100,000, depending on the employees’ specific circumstances. Economic loss compensation is calculated for eligible employees based on the assumption that Qantas had outsourced ground handling services anyway by the end of 2021.
The sample cases serve as the basis for the individual compensation of each former employee. To speed up payments, Qantas is seeking assistance from TWU and has initiated mediation. The Company is also conducting a current review to estimate the total indemnification liability. A separate trial will be scheduled to determine possible penalties. Already this year, Qantas had made provisions for estimated compensation and penalties as part of its full-year results in August.
The Federal Court had previously found that while Qantas had valid business reasons for the outsourcing decision, it could not rule out that the airline may have been motivated by an unlawful desire to prevent employees from engaging in protected industrial disputes and negotiating an enterprise contract . Further developments regarding penalties and final compensation amounts will be decided in future court sessions.
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