Qantas faces backlash for illegally sacking over 1,800 baggage handlers

In Australia, Qantas Airways announced a compensation payout of $120 million to 1,820 baggage handlers illegally sacked in 2020 during the COVID-19 pandemic. This decision came after a lengthy legal battle that involved appeals to both the federal and high courts, which ultimately ruled against the airline's outsourcing decision. The compensation was settled following over a year of mediation and hearings to quantify the economic and psychological damages suffered by the workers due to their unexpected dismissal. Each affected worker is set to receive between $30,000 and $100,000 as part of this agreement. The legal disputes originated from Qantas’s decision that violated protections under the Fair Work Act, which led to findings that the layoffs were primarily motivated by a desire to avoid potential industrial action. After losing their final appeal in October, Qantas was compelled to assess the damages suffered by these outsourced workers during the pandemic. The compensation amount significantly exceeds the initial $70 million budgeted by Qantas for handling the consequences of the outsourcing saga. Despite the hefty payout, Qantas reported strong financial performance, with an annual underlying profit of $2.1 billion, indicating that the compensation would not drastically affect the airline's overall financial outlook. Vanessa Hudson, the current CEO, expressed condolences to the affected workers, acknowledging the difficult period they faced. Hudson emphasized the airline's commitment to resolving issues stemming from the outsourcing decision, which caused significant distress for many former employees. In addition to the compensation agreement, Qantas may still face further penalties for breaching labor laws. The matter of these penalties is anticipated to be settled in the upcoming year, creating uncertainty regarding the final financial impact on the airline's operations and reputation in the aviation industry.