Qantas to Pay AUD $120 Million in Compensation to Illegally Fired Workers

Qantas has agreed to pay more than AUD $120 million ($76 million) in compensation to over 1,800 ground workers illegally fired in 2020. This agreement marks the conclusion of a four-year legal battle between the airline and the Australian Transport Workers Union (TWU), bringing long-awaited closure to those affected.

The Unlawful Dismissals

In November 2020, Qantas fired 1,820 ground workers across 10 airports and replaced them with external contractors. The Federal Court of Australia previously ruled that the decision was illegal, holding Qantas accountable for the dismissals. This ruling was a major legal victory for the TWU, which had been fighting for justice on behalf of the sacked employees.

The October 2024 court proceedings provided clear indicators of the financial implications, with three test cases awarded compensation amounts ranging from AUD $30,000 ($20,000) to AUD $100,000 ($67,000). The TWU at the time predicted the overall compensation would surpass AUD $100 million ($67 million), a figure now exceeded with the finalized AUD $120 million agreement.

Establishment of the Compensation Fund

To facilitate the payouts, Qantas will create a compensation fund in early 2025. This fund will ensure direct payment to all affected employees, covering both economic and non-economic losses. In addition, the compensation amount includes funds for the TWU as well as costs incurred in managing the distribution process.

Qantas Issues an Apology for the Illegally Fired Workers

In a statement issued on December 17, 2024, Qantas Group CEO Vanessa Hudson offered a formal apology to the affected workers and their families:

“This is an important step in bringing closure to these individuals, and I want to reiterate our sincere apologies to those impacted and their families. 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 and resolve it ahead of Christmas,”

The Australian Council of Trade Unions (ACTU) praised the agreement, recognizing the case as the largest instance of illegal terminations in Australian industry. ACTU Acting Secretary Joseph Mitchell commended the TWU for its persistence and celebrated the victory as a significant milestone for union power:

“This is a historic win for union members. We congratulate the Transport Workers Union for achieving justice for the 1,800 illegally sacked workers and their loved ones. After years of Qantas fighting the Transport Workers Union in the courts, these union members will now finally be compensated for the enormous damage they suffered at the hands of the company under Alan Joyce,”

The TWU celebrated the decision on social media, emphasizing the power of collective action: “Qantas will create a $120 million fund to compensate illegally outsourced workers after a four-year TWU court case. A huge congrats to these workers – that’s union power.”

• Featured image By Brian via Wikimedia Commons

Youssef Yahya

Youssef Yahya is the CEO and Founder of Aviation for Aviators, a platform dedicated to the aviation industry. With over 3 years of experience as an aviation writer, Youssef is passionate about sharing his insights on aviation, entrepreneurship, and the broader business landscape. As a Teaching Assistant in Entrepreneurship at Nile University, he also nurtures the next generation of entrepreneurs. When he’s not exploring the skies or business ventures, you can find him saying, ‘Drag your coffee, and let’s talk aviation, entrepreneurship, and football.’

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