Qantas pay dispute faces compulsory arbitration for first time ever
2012 03 28
- Details
QANTAS and the Transport Workers' Union (TWU) are to face compulsory arbitration before Fair Work Australia after failing to resolve pay and conditions for around 3,800 baggage handlers, ground staff, catering, freight and other transport employees.
Fair Work Australia will determine a workplace agreement by compulsory arbitration after months of strikes by TWU and other unions costing A$68 million (US$71.5 million) in grounding of Qantas' fleet at a weekly revenue loss of A$15 million.
"This is the first time since enterprise bargaining began almost 20 years ago that Qantas will have a pay dispute resolved by compulsory arbitration," said Qantas Group executive Lyell Strambi in a statement.
Qantas was subjected to rolling strikes, strikes over the school holidays and announcing strikes only to call them off at the last minute and only after disrupting the travel plans of thousands of passengers, Mr Strambi added.
"If Qantas had done nothing and allowed the 'slow-bake' from unions to continue there would have been no end to the industrial dispute, with union leaders including Tony Sheldon threatening to continue strike action for 12 months.
Qantas maintain that it is working to a fair deal for its employees by maintaining competitive salaries and working conditions - and a fair deal to the company to allow for flexibility needed to remain competitive in the global aviation industry.
Mr Strambi said the TWU proposal for pay increases of 10 per cent over two years is not viable - Qantas has offered pay increases of three per cent. TWU demand that Qantas covers employees of the subsidiary operation Qantas Ground Services (QGS) in its new pay deal rather than outsource but Mr Strambi says this would prevent sensible use of contractors and in turn a flexible workforce.
But this would allow Qantas to get "lowest rate of pay, the lowest conditions they can possibly get, which includes poorer training, poorer skills and it means less performance for the travelling public," said TWU federal secretary Tom Sheldon, reported ABC Melbourne radio.
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