Business

Union threatens legal action over Qantas job cuts

Georgina Robinson
April 14, 2009

Unions representing about 13,000 Qantas group workers say the 1750 job cuts announced today could not have come at a worse time.

The airline today announced 500 management positions would go and a further 1250 full-time jobs would be affected as the group navigates a severe downturn in travel and aviation. 

Workers would first be encouraged to enter into job-sharing arrangements, take annual or long-service leave, leave without pay or convert to part-time positions, Mr Joyce said.

The company also said its natural attrition rate, which could be significant in real terms among a 34,000-strong workforce, would help minimise sackings.

But the Australian Services Union, which represents about 10,000 employees in the Qantas group, said the wider economic climate would test the voluntary model.

"I don't think we're going to have queues of volunteers," ASU assistant national secretary Linda White said.

"We're in significantly difficult times in the jobs market right now.

"The airline industry is cyclical and so we've seen out SARS, bird flu, the Gulf War, you name it, and we've come up with a number of job avoidance strategies that will kick into place now."

In addition to the job cuts, the airline will ground 10 planes and defer orders for four Airbus A380s and 12 Boeing 737-800s, as well as try to delay the delivery of its first 787-800 or Dreamliner aircraft.

Ms White said the cuts would also put pressure on staff left behind.

"This is serious. They're strong numbers and it's my strong view that people are working at a fairly heavy pace in Qantas," she said.

"The work won't just disappear. Somebody will have to do it ... we put Qantas to the test every time about that, every job is precious not only to those that will lose out but the ones left who'll have to do the work."

A spokesman for the union representing 1700 Qantas licensed engineers said it would fight any move towards compulsory redundancies.

"If there's going to be any job cuts in regards to our members they would have to be voluntary," Australian Licensed Aircraft Engineers Association spokesman Gary Norris said.

"We have negotiated a new enterprise bargaining agreement with Qantas that came into effect in September, which provides job security to the licensed aircraft engineers.

"We'd end up in a situation of having to take legal action if they went to compulsory redundancies.

"It's unclear to us what process Qantas is going to go through because they haven't consulted with us at this point of time in regards to what areas they see as being reduced," he said.

The Transport Workers Union said Qantas should transfer staff to other parts of the group, including Jetstar, while the air travel industry was in a slump.

Qantas chief executive Alan Joyce told a media conference this morning that Jetstar, Qantas Frequent Flyer and Qantas Link continued to perform well.

TWU national secretary Tony Sheldon said the group's cut-price airline could absorb as many as 150 jobs.

"It has not reduced its international flights. Its domestic capacity has increased substantially,'' Mr Sheldon said.

He also urged Qantas not to use further outsourcing, which he said could result in "poor safety and poor training".

"It depends on Qantas's intention to maintain jobs rather than slash and burn them," Mr Sheldon said. 

"This is a cyclical industry. 

"Qantas needs to have well trained and professional staff for the upswing."

- with AAP

More Related Coverage

Qantas scraps more jobs, cuts capacity

14 Apr Qantas to scrap up to 1750 jobs, forecasts a massive drop in its profit expectations.

Qantas shareholders in for long, low-altitude flight

14 Apr With the biggest global downturn in living memory, airlines are stationary targets.