Outcome
On 20th December 2011 it was announced that Qantas engineers will receive a 3% wage increase over the next three years, but at the same time face the loss of their jobs. However the outcome of this situation resulted in the construction of the new a380 hanger and the heavy maintenance of the new long haul aircraft to be relocated to Asia. Qantas also planned to set up regional airlines in Asia resulting in more of the work to be done abroad and hiring foreign pilots and cabin crew which will be paid well below Australian rates (workplace info 2011).
In relation the union demanded a 10% pay increase over the next two years. A new payment structure has been put into place which will result in increased wages for TWU employees. The TWU has also put forward five key claims to be considered by the tribunal, including a new classification structure and a demand that the new agreement cover staff working for Qantas. Terms and conditions have been put into place which makes it uncompetitive for Qantas to use labour hire companies such as QGS. It also prevents Qantas from the sensible use of contractors and having a flexible workforce while competitors are free from these constraints (leary, A 2012).
The outcome reports to the Australian Securities Exchange that the combined cost of industrial actions had cost the Qantas $194m, the grounding of 7 aircraft, $70 million in damage, $56m through lost customer loyalty and forward bookings, and $68m from the union actions in the lead-up to the grounding. Qantas produced material indicating that the protected action taken by the unions prior to 29 October had affected 70,000 passengers, led to the cancellation of 600 flights. That protected action was associated with significant reductions in forward bookings and decline in market share. Qantas announced a major restructure that will cut 1000 jobs. It proposes to establish a new Asian-based premium airline. Jetstar would establish Jetstar Japan, with Qantas holding a...
