Never let a crisis go to waste, the prospect of a 40% discount on future ground handling and not having the unions squeezing his nuts must have been too much to resist for AJ. The idea of simply picking the lowest tender instead of negotiating with militant union leaders just prior to the peak travel season would be very appealing.
If it was cheaper to have ground handling in house, then other airlines would be doing it rather than outsourcing. Whilst there are undeniable advantages to having your own people, these are obviously outweighed by the disadvantages and higher cost.
Baggage handlers at QF are paid considerably more than similar workers in comparable jobs outside of the airline, and it’s only because of the disruption they are capable of causing rather than supply and demand.
FIFO workers on the mines are very well paid because that is what it takes to have people away from their families for 2 - 3 weeks at a stretch doing 12 hour shifts in the outback. I saw a job for a grader driver in the Pilbara recently, 3 weeks on 1 week off, 12 hours shifts at $65 an hour plus super. Comes out at +$200 000 a year, which is more than most F/Os make and not too far off junior narrow body Captain rates, if anyone wants a career change