Key Highlights:
- Qantas and the Transport Workers Union (TWU) have reached a $120 million agreement on compensation for former ground handlers affected by outsourcing decisions in 2020.
- A compensation fund will be established, managed by Maurice Blackburn on behalf of the TWU, to pay compensation to 1,820 impacted employees.
- Final compensation will cover both economic and non-economic loss, as well as associated administrative costs.
- The fund is set to be established in early 2025, with payments to follow.
Sydney, Australia – 17 December 2024 – Qantas Airways and the Transport Workers Union (TWU) have today announced a successful agreement regarding the payment of compensation to former ground handlers who were affected by the airline’s decision to outsource operations in 2020. This landmark settlement is valued at a total of $120 million, marking a significant step towards resolution for the 1,820 impacted employees.
The compensation follows a Federal Court ruling in October 2024 regarding three test case employees. As part of the agreement, Qantas and the TWU will establish a compensation fund, which will be managed by Maurice Blackburn on behalf of the union. This fund will be used to directly compensate the former employees for their losses.
Compensation Fund Details
The fund, which is expected to be established in early 2025, will cover both economic and non-economic loss suffered by the employees. In addition, compensation will be provided to the TWU and the costs associated with managing the fund’s distribution. The payments are expected to provide closure to those impacted by the outsourcing decision.
Qantas Group CEO Vanessa Hudson expressed, “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 we are pleased to have worked closely with the TWU to expedite this process and resolve it ahead of Christmas.”
Next Steps and Financial Impact
Qantas had previously updated its provision for compensation and penalties in its August 2024 Full Year Results, and incremental changes to this provision will be reflected in the Interim Financial Report for FY25. It’s important to note that any changes to the provision will be recorded outside of underlying earnings.
In addition, a separate Federal Court hearing will be held at a later date to determine any penalties associated with the case.
