Qantas cuts to jobs, services and staff wages are short-sighted say unions

Media Release - May 29, 2008
The decision by Qantas management to cut airline services, slash jobs and reduce real wages for staff is short-sighted and will lead to lower standards and quality at the airline in the long term say unions.
Qantas aircraft engineers are today taking part in a four hour stop work meeting to discuss concerns over declining pay and service standards at the airline.
The engineers’ union (ALAEA) called the stop work following the cancellation by Qantas management of pay negotiations scheduled to take place this week and the airline management’s ongoing refusal to offer the workers a pay rise that is above inflation.
Unions believe it is unfair and contradictory for Qantas management to plan job cuts and to insist employees shoulder real pay cuts while the company is headed for another record profit — on Monday this week the company reiterated its forecast for a 40% increase in profit this year.
And despite rising fuel costs, independent financial analysts are predicting Qantas will enjoy strong revenue growth of around 7% a year for the next three years (see graph below).
ACTU President Ms Sharan Burrow said:
“It is very disappointing that Qantas has refused to meet with unions and cancelled the meeting set down for pay negotiations this week.
“There is a simple principle at stake here — the engineers and other staff that are essential to keeping planes in the air and providing a high quality service should not have to suffer a real wage cut while Qantas executives get big bonuses and the company is headed for a record profit.
“Qantas management also need to be reminded that cuts to services, jobs and wages will not attract more customers and will put at risk standards at the airline.”
Steve Purvinas, federal secretary of the aircraft engineers union (ALAEA) said:
“The last thing our members want to do is inconvenience the travelling public and we regret any such impact. But in the long-term the only way of maintaining services and standards within the airline is for members to stand up for their basic rights.
“The stoppage is the direct result of Qantas managers demanding their workforce accept a pay cut in real terms while executives take massive bonuses.
“Our (ALAEA) members offered to minimise the impact of this week’s action by putting in place skeleton crews, but Qantas managers ignored this offer.”
Qantas stop work meetings will take place between 8am – 12 noon on Thursday 29 May at the Sydney airport; 6pm – 10pm on Thursday at the Brisbane airport, and between 8am and 12 noon on Friday 30 May at the Melbourne Tullamarine airport.
Please see Myths and Facts at Qantas fact sheet attached below.

Watch Sharan Burrow address Qantas workers (Source: ABC Online)

The ACTU Network

Australian Unions

Whether you want to join a union, take action in campaigns, or make the most of the benefits of being a union member, Australian Unions is the place to go for information and resources.
Visit Australian Unions

Mind Your Head

We’re taking action to protect workplace mental health.
Visit Mind Your Head

Worksite

Your rights at work for students and for people entering the workforce for the first time.
Visit Worksite

OHS

Information and resources for health and safety representatives and workers about how to speak up at work for health and safety.
Visit OHS

Union Aid Abroad

Union Aid Abroad-APHEDA is the overseas aid and development agency of the ACTU. Our work aims to build self-reliance through support to educational and training projects for workers and their organisations in the developing world.
Visit Union Aid Abroad

ACTU National Union Directory

Find who you are looking for from the who’s who of the union movement.
Visit the ACTU National Union Dictionary

Representing Australian workers and their families.