A Federal Court judge has directed that penalty payments from Qantas must be distributed promptly to workers affected by the airline’s unlawful outsourcing of ground crew nearly six years ago. The judgement comes as 1,800 former baggage handlers, cleaners, and other ground staff await compensation from a $120 million fund set up following the court’s ruling.

In December, Justice Michael Lee ordered law firm Maurice Blackburn to complete payments by July 31. However, an extension was sought last month, pushing the deadline to October 31. The delay has prompted the judge to urge action, emphasizing that the penalty money, held in an account with the National Australia Bank, should be disbursed without further hold-ups.

The compensation process involves two components. The workers are to share in $40 million from a $90 million penalty imposed on Qantas, with the remaining $50 million allocated to the Transport Workers Union (TWU). Justice Lee acknowledged the frustration that the union received its portion quickly while the individual workers continue to wait.

Lewis Hamilton, barrister for the TWU, responded that the union has remained actively involved, providing updates and maintaining contact with members. He noted challenges faced by the TWU, including limited resources, although Justice Lee questioned whether the union’s capacity was as constrained as in the past.

The principal factor contributing to the delay has been deficiencies in medical assessments conducted for 111 workers. These evaluations are necessary to determine non-economic losses related to medical conditions under the Health and Other Services Compensation Act. The law requires that compensation calculations account for payments previously made by Medicare for the relevant conditions, complicating the process and necessitating reassessments. The final appointments were scheduled to conclude by the end of August.

Justice Lee indicated that had these issues been raised earlier, he would have intervened to expedite payments to workers. He also ordered Maurice Blackburn to cease efforts to identify additional claimants, stating that the compensation process had been ongoing long enough and that those who had not yet come forward would not be accommodated further.

Regarding distribution methodology, the judge directed that payments be calculated based on each worker’s years of service with Qantas rather than an equal division of funds. He reasoned that tenure correlates with age and employment prospects, noting the significantly different re-employment outlooks for older versus younger workers.

While the $120 million compensation fund remains under judicial oversight for finalization, the judge emphasized that the $40 million penalty payments should be released promptly to the affected workers, marking a critical step towards resolving a prolonged compensation dispute stemming from the airline’s outsourcing decision.