'Darkest day' as Qantas plans Asian move
Updated
Unions say Qantas's announcement that it will slash 1,000 jobs and forge into Asian markets heralds one of the "darkest days" in the airline's history.
Chief executive Alan Joyce announced this morning that the airline would launch a new Jetstar line in Japan and another low-cost airline in Asia that will not carry the Qantas brand.
The five-year plan, designed to return Qantas to international profitability, includes delaying the delivery some of the airline's Airbus A380 fleet, and strengthening ties with Asian airlines.
It also includes laying off 1,000 jobs from the international arm of the airline's operations, with unions furious at that decision.
They are questioning how much loyalty to Australia remains within the airline.
Australian Council of Trade Unions (ACTU) secretary Jeff Lawrence says Qantas has shown contempt for its workforce.
Mr Lawrence says it is one of the airline's "darkest days."
"It is of great concern. I don't think Australians are going to support a race to the bottom by a company that's prepared to trade off conditions," he said.
"There is question about whether Qantas remains an Australian company. I think today Qantas management has actually turned its back on Australian jobs.
"The announcement, of course, has got a lot of detail around it and there are some things that are foreshadowed that we don't have detail about, and that's a concern as well."
Mr Joyce says the airline's cost base is 20 per cent higher than its key competitors, meaning that changes had to be made.
But Mr Lawrence says it is not a question of doing nothing, but just how the issues are addressed.
"For years, the ACTU and the airline unions have been calling on Qantas to sit down and actually be honest about these issues and negotiate a package," he said.
"Instead, Qantas have proceeded on a path of using various corporate entities ... in a way which is designed to evade their responsibilities under Australian Industrial Regulation, and this appears to be a continuation."
'Third-world standards'
Tony Sheldon, from the Transport Workers Union, says the decision to move Australian jobs offshore will result in a rapid decline in standards.
Pilots have previously warned that jobs will be lost overseas and safety standards will decrease.
"This company has a responsibility as the Australian icon to make sure that this airline is kept in Australian hands with Australian jobs," Mr Sheldon said.
"What they've decided to do is go the low road: go to third-world standards, third-world training and third-world safety."
However, Qantas denies safety standards will put at risk its plans.
Mr Joyce says the airline's safety standards "will be the safest we can make them because safety is our top priority".
Australian Licensed Aircraft Engineers Association president Paul Cousins says his members were not consulted at all about the moves.
He says the union is shocked and "extremely disappointed".
Qantas changes
- 5-year plan to return Qantas International to profitability
- 1,000 jobs to be cut under restructure of international arm
- Strengthening ties with LAN, Malaysia Airlines, South African Airways and BA
- Jetstar Japan will launch domestic Japanese services by end of 2012
- Delaying delivery of some Airbus A380s and ordering 110 new A320s
- Creating premium airline based in Asia, not under Qantas brand
- Santiago to replace Buenos Aires as entry point to South America
"They're considering job redundancies across the network of Qantas airlines, and both the international and domestic, and that obviously concerns us," he said.
"We're also extremely disappointed that Qantas continues to fund start-up airlines across the network and across the globe without actually continuing that investment in Australia."
The ACTU's Jeff Lawrence says the union will look at its options and industrial action will be taken.
"There's a range of bargaining issues at the moment that each union will be looking at - what this announcement means from the point of view of jobs and the future of the workforce," he said.
"We will be coordinating activity and of course there'll be industrial issues that we will have to work through.
"But as well as that, clearly we'll be looking at what needs to be done in terms of regulation of the airline to ensure that the real intention of the Qantas Sale Act and all of the regulation of Qantas is actually maintained."
Within the rules
Federal Transport Minister Anthony Albanese says the job cuts are regrettable, but the Government acknowledges the commercial decision taken by Qantas.
Mr Albanese says the airline has indicated that it is "in complete conformity" with the Qantas Sale Act.
"Any loss of jobs is very much regrettable. The Government believes that Qantas is an iconic Australian brand. We believe it's important that the provisions of the Qantas Act be maintained, [and] we'll ensure that that occurs," he said.
Mr Albanese would not comment on whether the job losses were unavoidable, but he said it is vital that Qantas remains a leading Australian company.
"It is very important that Qantas reassure the Australian public that it regards itself very much as the Australian icon," he said.
"Qantas management and its employees need to have much better relationships develop through better dialogue so that we have indeed a promotion of the brand of Qantas, because I know that many Australians fly on the flying kangaroo because of the way that it is."
Topics: air-transport, unions, work, australia
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