By Miklos Bolza in Sydney

Qantas has apologised to workers unlawfully retrenched during the COVID-19 pandemic as the airline faces calls to pay over $200 million in compensation and penalties.

The Transport Workers’ Union had a major win in the Federal Court on Monday after deciding to pursue Qantas over its decision to outsource almost 1700 ground staff jobs in November 2020.

After redundancies commenced, these employees were eventually all jettisoned from the airline by March 2021.

Justice Michael Lee on Monday ordered Qantas pay $170,000 in non-economic loss to cover the hurt and distress suffered by three test-case employees, Christopher Carney, Nicholas Bennett and Leonie Piggott.

The decision paves the way for compensation for other sacked workers following a long and bitterly fought legal battle that Qantas unsuccessfully took to the High Court.

In July 2021, Justice Lee found the lay-offs were designed to deprive workers of being able to bargain for a new enterprise agreement and, as such, contravened employment law.

In his 74-page judgment on Monday, he found the workers would have been retrenched by late 2021 anyway given that the airline’s “laser-like” focus on cutting costs while failing to prioritise its workers’ continued employment.

The judge awarded Mr Carney and Ms Piggott $30,000 and $40,000 respectively due to their hurt, humiliation and psychological distress from being made redundant.

But he awarded Mr Bennett $100,000 after finding the lay-offs had triggered a major psychiatric illness in the ex-airline worker with symptoms including depression, anxiety, sleep disturbance and problematic alcohol use.

After four years of legal skirmishes, Justice Lee urged the union and airline to resolve any further disputes about the final amount of compensation payable and any penalties imposed on Qantas.

“Apart from any public benefit, finality would help bring a degree of closure to those affected workers who have been wronged, particularly for those who experienced emotional and financial stress,” he said.

The matter will return to court on November 15.

Qantas chief executive Vanessa Hudson apologised to the affected workers and said the company would work to expedite the compensation payments.

“We recognise the emotional and financial impact this has had on these people and their families,” she said in a statement.

“We hope that this provides closure to those who have been affected.”

TWU NSW assistant secretary Nick McIntosh said the union would be seeking a compensation claim in excess of $100 million for all retrenched workers as well as a penalty of a similar amount.

Qantas should be hit with more than $200 million in total for “the biggest illegal sacking by a country mile”, he said.

“We need to make sure that there is a substantial compensation package and penalty to send a message to corporate Australia that if you do this, you’re not only going to pay with your back pocket but you’re going to pay in terms of your publicity and your reputation.”

He congratulated the employees who had stood up to Qantas, saying it was a victory for workers all over Australia.

Outsourced worker Don Dixon said the airline’s decision was tough for staff who thought they would spend the rest of their lives with the company.

“Losing your job as quickly and as brutally as it was was a horrible thing,” he said.

“Most of us are getting on in years so getting another job out in the harsh world was very, very difficult.”

Justice Lee previously rejected a bid by the union to have all 1700 workers reinstated at Qantas after finding that proposal was impractical.

The judge’s findings that the terminations were unlawful were unsuccessfully appealed by Qantas in the Full Federal Court and High Court.