Judge Criticizes Delays in Qantas Worker Payout

A Federal Court judge has ordered the swift distribution of approximately $38 million to Qantas workers who were unlawfully sacked in 2020, criticizing delays in the compensation scheme.

Justice Michael Lee, who had previously ruled the airline’s outsourcing of 1820 baggage-handling, cleaning, and ground staff roles during the COVID-19 pandemic was illegal and designed to undermine union bargaining power, stated that "it is simply unfair to make those who have done all they reasonably can do to engage with the administrator to wait any longer." He ordered that the remaining funds, held by the court, be "decoupled" from the broader compensation scheme and paid to impacted workers immediately.

The court in December ordered Qantas to pay a $9 million penalty for the contraventions, with $50 million of that already paid to the Transport Workers' Union. The $38 million now to be distributed to workers represents the bulk of the remaining payout.

Workers are expected to receive a day’s notice before payment, with the amount based on their tenure at the company. The compensation scheme has faced delays, including issues with independent medical expert reports and reimbursements to Services Australia for workers compensated under Medicare.

Lawyers for the compensation administrator indicated in mid-June that problems arose with approximately 110 independent medical reports, which were intended to help assess non-economic loss. The administrator reportedly did not consider some reports to meet required standards, a claim disputed by the independent experts. Justice Lee expressed concern about the lack of transparency in the process, stating, "The problem in this case is ... it is being done in a way which lacks transparency."

Bryan Perrett, an impacted worker, suggested the outstanding funds should be split equally among eligible employees, calling it "the quickest, easiest, and fairest way to distribute the funds." Don Dixon, a Transport Workers' Union delegate, described the judge's decision as "just and fair," acknowledging the difficulties faced by long-term employees, some in their 60s, after losing their careers.

Justice Lee also commented on the administrator’s approach, noting it had not sought early court intervention to expedite problem resolution. He also made a brief remark about the "passivity" of the union and class-action lawyers involved. Qantas had reported saving approximately $125 million in the year following the outsourcing in 2020.