Qantas Airways has reached a settlement agreement with the Transport Workers Union (TWU), agreeing to pay a total of A$120 million (approximately $76.2 million) to former ground workers who were dismissed in 2020. This follows a protracted legal dispute regarding the airline's decision to lay off workers during the height of the COVID-19 pandemic.

The compensation will be distributed to the former employees via a compensation fund, which is expected to be set up in early 2025, reported Reuters. Qantas has confirmed that the final compensation amount will be determined by factors such as payments to the TWU and the administrative costs required to process the disbursements.

While the settlement addresses the compensation for the affected workers, the matter is not entirely settled. The Federal Court will hold a separate hearing at a later date to decide whether Qantas will face any penalties for the mass sackings. The airline has stated that it is prepared to address any legal ramifications from this hearing.

The 2020 sackings, which saw Qantas terminate around 2,000 ground staff, sparked significant backlash, particularly from the union and the public, as the airline opted to outsource the ground handling roles. The union had claimed that the layoffs were a cost-cutting move by the airline, which used the pandemic as an excuse to reduce its workforce.

In the coming months, Qantas will move forward with the compensation process, and the outcome of the Federal Court hearing could have further implications for the airline's finances and operations.