Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Qantas engineers vote on work stoppages as they seek higher pay

Published 07/05/2022, 09:17 PM
Updated 07/05/2022, 11:16 PM
© Reuters. FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia, March 18, 2020.  REUTERS/Loren Elliott/File Photo

© Reuters. FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport in Sydney, Australia, March 18, 2020. REUTERS/Loren Elliott/File Photo

By Jamie Freed

SYDNEY (Reuters) -Qantas Airways Ltd's unionised licensed aircraft engineers are voting on work stoppages of up to 12 hours and overtime bans from next month after failing to reach a pay agreement with the airline, the union's head said on Wednesday.

The move which affects around 1,000 engineers across Qantas and subsidiaries Jetstar and Network Aviation, comes as the airline is trying to minimise disruption to customers from worker shortages at airports that have led to increased flight delays and cancellations.

"With the industry still recovering from the impact of the pandemic, the last thing it needs is the threat of industrial action," a Qantas spokesperson said. "Should the union proceed with industrial action, we have contingency plans to minimise any disruptions."

The Australian Licenced Aircraft Engineers Association (ALAEA) last week was granted approval by the Fair Work Commission to hold the ballot on industrial action, as first reported by The Australian Financial Review on Wednesday.

ALAEA Federal Secretary Steve Purvinas said the ballot, due to close on July 30, was extended to Aug. 10 by the Australian Electoral Commission. The first industrial action could take place in the third week of August, though it would not target holiday periods to minimise disruption.

Qantas has offered its 19,000 workers covered by union contracts a A$5,000 ($3,396.50) bonus when they reach new pay agreements, provided they agree to wage increases of 2% annually following a two-year wage freeze during the pandemic.

In this case, the 2% rise for members of the ALAEA at the main Qantas brand would apply from mid-2021, given its last pay deal was long expired. That compares to inflation in Australia that is forecast to reach 7% by the end of the year and the union's push for a 12% rise this year, which it says covers the equivalent of four years given the stalled talks.

© Reuters. FILE PHOTO: A ground worker walking near a Qantas plane is seen from the international terminal at Sydney Airport, in Sydney, Australia, Nov. 29, 2021. REUTERS/Loren Elliott/File Photo

"Our members at Qantas have not received a wage increase in four years," Purvinas said. "The airline wage freeze offer is insulting to engineers who have borne the brunt of COVID stand-downs and redundancies."

($1 = 1.4721 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.