Federal Court Orders Qantas Airways Limited to Release $38 Million

Justice Michael Lee of the Federal Court of Australia ordered the imminent release of approximately $38 million to workers unlawfully sacked by Qantas Airways Limited in 2020. The funds are a portion of a $90 million penalty imposed on the airline for outsourcing 1,820 ground staff roles to curb union bargaining power. Justice Lee decoupled these payments from a broader, delayed compensation scheme to ensure workers are not forced to wait longer.

During the proceedings, Justice Lee criticized the compensation scheme's administrator for a lack of transparency and efficiency. In response, Senior Counsel Adam Hochroth explained that delays were caused by issues with medical expert reports and bulk payment agreement requirements with Services Australia. The judge also noted a degree of passivity from the class-action law firm Maurice Blackburn regarding the administration of the scheme.

Earlier in the legal process, $50 million of the total penalty was paid to the Transport Workers' Union of Australia for its role in prosecuting the conduct. The remaining payments to the impacted workers will be calculated based on their tenure at the company.