Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Qantas raises stakes in battle over long-haul cabin crew contract

Published 01/19/2022, 07:28 PM
Updated 01/20/2022, 01:25 AM
© Reuters. FILE PHOTO: A ground worker walking near a Qantas plane is seen from the international terminal at Sydney Airport, as countries react to the new coronavirus Omicron variant amid the coronavirus disease (COVID-19) pandemic, in Sydney, Australia, November 2

By Jamie Freed

SYDNEY (Reuters) -Qantas Airways Ltd will seek to terminate contract terms with long-haul flight attendants, the carrier said on Thursday, in a move that would bring large pay cuts, after union members voted against more flexible rostering.

Qantas said it was the first time in its history it had sought to terminate an employment terms agreement, or a contract between employers and unions, which is a rare and heated move in industrial relations in Australia.

The move sets up the airline for a high-profile union battle at a time when it also needs to strike agreements with short-haul crew in order to seal the business case for a major Airbus SE (OTC:EADSY) narrowbody aircraft order https://www.reuters.com/business/aerospace-defense/airbus-wins-order-renew-qantas-fleet-sources-2021-12-15.

If it succeeds, cabin crew pay and conditions would revert to a much lower Australian minimum industry standard while a new pact is negotiated.

Qantas' latest contract offer to long-haul flights attendants was rejected by 97% in a vote in December.

The Flight Attendants' Association of Australia (FAAA) said the deal sought to cut conditions and impose a two-year pay freeze followed by 2% pay rises at a time of growing inflation.

The airline said a union counteroffer was "unworkable" as it would have raised costs by A$60 million ($43.30 million) over four years.

"We're seeking termination because we can't effectively run our business without the rostering changes we desperately need to properly restart our international network in a post-COVID world," Andrew David, its international chief executive, said in a statement.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Under the existing agreement, cabin crew on the A330 fleet cannot be used on the 787 and A380 fleets, making it more difficult for Qantas to shift aircraft types.

The FAAA said it was willing for crew to work on all aircraft, just not on the terms proposed by the company.

The airline is running just 20% of its pre-COVID-19 international capacity in the current quarter, as the Omicron variant prompts tougher border curbs in some nations.

Qantas said Australia's Fair Work Commission was expected to deal with the application in the coming weeks, with the airline requesting an expedited hearing. It said it was open to putting back on the table the same deal the union had rejected.

($1=1.3858 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.