Australia's Qantas told to pay $114,000 to 3 sacked workers in landmark outsourcing case

A court on Monday ordered Australia's Qantas Airways to pay a combined A$170,000 ($114,000) to three baggage handlers it unlawfully sacked in 2020, implying a big damages bill for a lawsuit involving about 1,700 former workers whose jobs were outsourced. Federal Court Judge Michael Lee said Qantas must pay each of the fired workers A$30,000, A$40,000 and A$100,000 respectively for non-economic loss to reflect the "harm sustained" when the airline laid off them and their colleagues to prevent industrial action. The carrier must use those payouts as "test cases" as it negotiates with a union on a total damages bill for all of the former ground workers. Qantas had claimed the sackings were warranted as a cost-cutting measure during the COVID-19 pandemic and fought the industrial lawsuit all the way to the High Court. Lee said he found if Qantas had not illegally outsourced its ground handling operations in 2020, it would have done so lawfully in 2021 to help save about A$100m a year. Though the ruling did not give a final payout figure, it sets the tone for the last major legal battle for the airline as it tries to recover from a reputational horror stretch in relation to its actions during and immediately after pandemic restrictions from 2020 to 2022.<br/>