Sydney, Dec 18 Australia's flag airline Qantas has agreed to pay compensation to over 1800 workers who were illegally dismissed during the Covid-19 pandemic.
The carrier announced that it has reached an agreement with the Transport Workers Union (TWU) to pay the former ground handlers a combined 120 million Australian dollars (76 million US dollars).
Under the agreement, Qantas and the union will set up a compensation fund in early 2025 to send payments to the 1820 former employees whose roles were illegally outsourced in 2020.
"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 Chief Executive Vannesa Hudson said in a statement.
The TWU said that the payouts would compensate the workers for economic loss as well as hurt and suffering, Xinhua news agency reported.
The union launched legal action in the Federal Court on behalf of the 1820 workers in 2020 after their roles were outsourced in August of that year amid border closures and lockdowns.
The court in 2021 ruled the jobs were illegally outsourced but that the magnitude made reinstatement impractical. The High Court of Australia in September 2023 upheld the ruling, dismissing an appeal by Qantas.
The Federal Court in October 2024 ordered the airline to pay a combined 170,000 Australian dollars (107,731 US dollars) to three employees who were used as test cases.
Final compensation figures for affected workers will be capped at about 12 months' pay.
Qantas said in its 2024 annual report that it had allocated 70 million Australian dollars (44.1 million US dollars) for expected costs in relation to the case.
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