Monday, November 14, 2011

Push to resolve Qantas disputes

The long-haul pilots' union launched legal action last week against Fair Work's decision to terminate its dispute with Qantas. 

Pressure is building on Qantas and unions to resolve their differences over new employment contracts covering a large slice of the airline's workforce as a deadline of next Monday looms.

Negotiating teams from Qantas and unions representing the airline's long-haul pilots and licensed engineers resumed talks before Fair Work Australia yesterday. In the event that a deal is not reached by Monday, the two sides will have to be willing to agree to extend talks for another 21 days or the matter will be referred for binding arbitration.

The Transport Workers Union, which represents baggage handlers and other ground crew, also has talks scheduled with Qantas for tomorrow and Thursday.

The long-haul pilots' union launched legal action last week against Fair Work's decision to terminate its dispute with Qantas. The first court hearing is set for December 1 but the pilots are likely to pursue their legal action only if they fail to reach a suitable agreement. The TWU has threatened legal action as well but will wait on the outcome of negotiations before deciding whether to challenge Fair Work's decision.

The two sides are said to be under considerable pressure to reach a compromise. Qantas's chief executive, Alan Joyce, said yesterday he was hopeful of clinching agreements by Monday. ''We'll be working until the 11th hour to try and get an agreement,'' he said.

Investors are banking on a resolution to the damaging industrial relations battle, boosting Qantas's share price, which closed up 3¢ at a three-month high of $1.645 yesterday.

''Should Fair Work conclude an agreement encompassing annual wage increases in line with inflation and no restrictions over job security, we believe Qantas will be well placed to implement its planned restructuring of the mainline international business, which is likely to involve redundancies across parts of its workforce,'' Macquarie Equities analysts said.

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