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Illegally sacked Qantas workers to get share of $40m after airline slugged with massive penalty

More than 1,700 ground staff illegally sacked by Qantas will receive a share of $40 million after the national carrier was hit with huge fines by the Federal Court.

Judge Michael Lee found last year that Qantas had acted unlawfully when it laid off staff in favor of subcontractors at the height of the Covid outbreak.

Qantas was ordered to pay workers $120 million in compensation and be fined another $90 million.

At the beginning of this year, the court ruled that $50 million of this $90 million fine should be given to the Transport Workers Union.

The Federal Court heard on Tuesday that the remaining $40 million will be distributed to more than 1,700 affected workers.

Camera IconQantas has been hit with huge fines after illegally dismissing ground staff. NewsWire/Ben Clark. Credit: News Corp Australia

They will each be given an initial payment of $3333, with the remaining payments being made pro rata according to their entitlements.

“Work is more than a means of earning a living, it is a form of continued participation in society,” Judge Lee said in his judgment after handing down a large fine to Qantas in August.

“To unlawfully deprive someone of a job is to deprive that person of an aspect of human dignity that cannot be remedied by mere expressions of regret.”

The Federal Court previously found that Qantas had contravened protections in the Fair Work Act in its outsourcing and was motivated in part by a desire to prevent industrial action.

The airline appealed the decision to the Full Court of the Federal Court and later to the Supreme Court, but both were unsuccessful.

Judge Lee said Tuesday’s hearing marked the end of long-running court proceedings.

“Hopefully this will put an end to having to go through court on this matter, which started a while ago,” he said.

“I wish good luck to everyone whose interests are affected by this case.”

Judge Michael Lee. Image: Supplied
Camera IconJudge Michael Lee. Provided Credit: Provided
TWU national secretary Michael Kaine. Image: NewsWire/Tertius Pickard
Camera IconTWU national secretary Michael Kaine. NewsWire/Tertius Pickard Credit: News Corp Australia

TWU national secretary Michael Kaine described the case as a “David and Goliath” battle that lasted more than half a decade.

“Qantas workers who were illegally outsourced can now finally start to move on,” he said.

“These workers loved their jobs and this additional penalty of $40 million, the largest ever imposed on an employer, will go a long way in making up for the damage Qantas has done to their lives.

“After years of pain, it will be a relief for these workers to receive further support at Christmas time, on top of the $120 million they currently receive in compensation.

“Now is the time for Qantas to make meaningful change across its entire supply chain to ensure workers are valued and have good, safe jobs.”

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