Qantas and the Transport Workers Union (TWU) have today reached an agreement on the payment of compensation to the former ground handlers who were impacted in 2020 by the airline's decision to outsource, to a total value of $120 million.
Following the Federal Court's ruling in October 2024 regarding compensation for three test case employees, Qantas and the TWU have agreed to establish a compensation fund, which will be administered by Maurice Blackburn on behalf of the TWU, to pay compensation to the 1,820 impacted former employees.
The fund will be established in early 2025, from which compensation will be paid directly to the former employees. Final compensation amounts will cover both economic and non-economic loss, compensation to the TWU, as well as the costs incurred managing the distribution of the funds to individuals.
Qantas Group CEO Vanessa Hudson said: "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."
Qantas last updated its provision for the estimated compensation and penalties from the case at the Group's Full Year Results in August 2024. Incremental changes to the provision will be recognised in the Interim Financial Report for the first half of FY25 to be released in February. Changes to the provision will be taken outside of underlying earnings.
A separate hearing will be held to determine penalties at a date to be advised by the Federal Court.
