Jetstar AWA Tells Real Story of IR Laws: Workers' Pay Reduced by $160 a week
Just last week Jetstar owner Qantas revealed it will increase entitlements for its two top executives by $12.2 million. But under the new Jetstar AWA that all Jetstar international cabin staff will be forced to sign to get a job, workers will be paid between $2,600 and $8,200 a year (or up to $160 a week) less than other Australian cabin crews on international flights. Reduced allowances will also mean that the incomes of many workers on the AWA individual contracts will be reduced by considerable more than this amount. The AWAs also provide for a major potential increase in working hours for cabin crew. Commenting on the new AWA, ACTU President Sharan Burrow said: "What these new Jetstar AWA individual contracts mean is less pay for workers and that is ultimately what the Government's new IR laws are all about. "Unions are also concerned that the AWAs will allow Jetstar to reduce staffing levels on its international flights below existing standards. "If this is the case then what these AWA individual contracts will mean is not just lower pay for workers but also fewer jobs than would be the case under a properly negotiated collective bargaining agreement in which minimum cabin staffing levels are specified to ensure safety and service standards are maintained. "So it's not just Jetstar staff who will be worse off under this AWA, it may also be Jetstar passengers. Jetstar have claimed that that an employee bonus scheme based on selling items in-flight will compensate cabin crew for cuts in their base rate of pay and allowances. With a $10,000 a year pay cut for cabin crew - that's a lot of $3 headsets and passenger blankets to sell," said Ms Burrow. "Jetstar is part of a profitable company. Qantas made $670 million last year and has just upped the entitlements of its senior executives by $12.2 million. It is extremely disappointing that Jetstar would decide to treat its new workers in this way. "I think Australians would expect a big and profitable company like this to take a more cooperative approach with its workforce. The Government's new IR laws are unbalanced and give big companies like this too much power to unilaterally reduce the pay and conditions of Australian workers. "Jetstar and Qantas claim they need to reduce costs to cope with rising fuel prices but it is unfair that it is only their employees who are bearing the brunt of this. "Australian working families are also struggling to cope with rising petrol prices. "Pay cuts under the Government's new IR laws are only going to make things harder for Australian workers," said Ms Burrow.