Federal Court rebukes Maurice Blackburn over delays in Qantas worker compensation payments

A Federal Court judge has sharply criticized Maurice Blackburn Lawyers for delaying compensation to sacked Qantas workers, saying he has no confidence in the process and that the firm will have to bear the consequences of breaching his court orders.

Maurice Blackburn Lawyers is administering a $120 million payout that Qantas agreed to pay workers it was found to have illegally sacked in 2024, after a four-year Federal Court battle between the airline and the Transport Workers Union.

Workers were also expecting a share of $40 million, part of a penalty the court imposed on Qantas.

The Federal Court heard that Maurice Blackburn Lawyers only raised the alarm eight days ago that it needed more time to work out the complex payments.

Justice Michael Lee rejected the firm’s request to deal with it before the July 31 deadline, saying he was not given enough time to consider it properly.

It means 1,820 Qantas workers who the court found were illegally sacked in 2020 during the COVID-19 pandemic will have to wait longer to receive their compensation.

In its application for an extension of time, the law firm said it was struggling with the number of claimants, getting accurate medical reports and dealing with tax issues and Services Australia.

Maurice Blackburn Lawyers was meant to provide a schedule of payments made in the $120 million payout to the court by Friday, so the rest of the money could be apportioned to workers.

Justice Lee said the firm must have known much earlier that it was going to miss the court-ordered deadline.

"I confess to being disturbed that almost six years after the outsourcing decision, the court is now being asked … to abandon a timetable which it had every reason to believe was realistic when it was fixed only seven months ago," he said.

He also criticized the firm’s lawyers for writing to him personally asking for more time instead of initially filing an application to have the matter dealt with in open court.

"Applications affecting the rights and expectations of more than 1,800 people ought to be brought openly," he said.

"They are not there merely to be observed when it is thought convenient to do so."

Barrister for Maurice Blackburn Lawyers, Adam Hochroth SC, told the court he wanted the matter dealt with on Wednesday because his client’s deadline was just two days away.

Justice Lee said he would deal with the matter next week instead.

"Yes, and you'll be in breach of [the deadline], and we'll see what consequences flow from that," he replied.

Qantas has been contacted for comment.

A spokesperson for Maurice Blackburn Lawyers said they would not comment on Wednesday’s proceedings, but provided a statement saying the firm was experienced in class actions.

"The work is detailed and complex and requires the Administrator to engage on an individual basis with all claimants," the statement said.

"We anticipate that claimants will be advised of the estimated amount they will be eligible to receive shortly."

Outside court, sacked worker Don Dixon said he wanted the case to be over so he could get his life back.

"They really need that compensation for their health and to move on financially and pay the bills they haven't been able to pay."

Transport Workers Union national secretary Michael Kaine said Maurice Blackburn Lawyers won the case for workers, but now needed to step up to deliver the compensation these workers deserve into their pockets.

Justice Lee said the court was holding over $35 million that should be in the hands of workers and that it could not be distributed until the initial $120 million payout was finalized.

"Payment has become dependent upon a delayed administration outside the court's direct supervision, and which, on the present material, I have no confidence I know will be completed."

He said he would deal with the matter on August 6, when he had more time to consider it properly.