Qantas agrees to $120m compensation fund for handlers

QANTAS plane at Brisbane Airport. | Newsreel
Qantas has set a $120m compensation fund for sacked ground handlers. | Photo: Mt Curado. (iStock)

The chance of industrial action disrupting holiday travel plans is lower today, as Qantas agrees to set up a $120 million fund for sacked ground handlers.

Qantas Group CEO Vanessa Hudson said an agreement had been reached with the Transport Workers Union (TWU) on the payment of compensation to 1820 former employees impacted in 2020 by the airline’s decision to outsource.

Ms Hudson said the fund would be established early next year, from which compensation would be paid directly to the former employees.

She said final compensation amounts would 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.

“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.”

TWU National Secretary Michael Kaine said the union commenced a case in the Federal Court four years ago on behalf of the affected workers.

Mr Kaine said the Court found the workers’ jobs were illegally outsourced, but that the magnitude of the sackings made it impracticable to order reinstatement.

He said the 2020 outsourcing decision was the largest case of “illegal sackings” in Australian history.

“1800 former Qantas workers did nothing wrong but have been subject to four gruelling years of this court battle after being illegally outsourced.”

A separate hearing will be held to determine penalties at a date to be advised by the Federal Court.