Australia’s national carrier Qantas Airways said it would pay sacked ground handling workers A$120 million in compensation.
Qantas said it had reached an agreement with the Transport Workers Union (TWU) on the payment of compensation to the former ground handlers who were affected by the airline’s decision in 2020 to outsource their roles.
Qantas and the TWU had agreed to establish a compensation fund to be administered by law firm Maurice Blackburn on behalf of the TWU to pay compensation to the 1,820 employees sacked to save money during the COVID-19 pandemic.
The fund would be established in early 2025 with compensation to cover economic and non-economic loss, compensation to the TWU and the costs of managing the distribution of the funds to individuals.
Qantas Group CEO Vanessa Hudson said this was an important step in “bringing closure” to the sacked workers and she wanted to reiterate the airline’s 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,” Hudson said in a statement.
Qantas made a provision for the estimated compensation and penalties from the case at its full year results in August 2024 with any changes to be recognised in the interim financial report in February and taken outside underlying earnings.
A separate hearing will be held to determine penalties at a date to be advised by the Federal Court.
Qantas (ASX: QAN) shares last traded on the Australian Securities Exchange at $9.09, capitalising the airline at $13.46 billion, just below the record high of $9.14 earlier this month.