QF Industrial Tactics
Hold Steady” in a Volatile Industrial Relations Environment
Over the pandemic we have witnessed a ruthless approach from many aviation companies. For example, Qantas has unlawfully sacked its baggage handlers, forced the entirety of the long-haul cabin crew onto a B-scale (under the threat of terminating their agreement) and continue to resist efforts by Express Freighters Australia pilots to get a new agreement which simply meets the Air Pilot Award 2020.
In addition to seeking foreign crew, over the pandemic Alliance Airlines (Alliance) also tried to secretly push through a below-Award agreement on the E190, have denied career progression to their own F100 pilots and even apply training bonds to E190 pilots who join the company already type-rated on the E190.
Regional Express (Rex) has also recently taken a concerning approach to the renegotiation of the Saab agreement and the new B737 agreement despite the reasonable offers and measured approach of the AFAP Rex negotiating team.
Qantas has recently announced a strong profit forecast ($450-$550 million for the second half of the current financial year) and a large and ambitious fleet replacement program. Qantas bought National Jet Systems (NJS) at the start of the pandemic and recently announced plans to buy Alliance.
Just as it appears that the worst of the pandemic is over, some aviation companies are desperately trying to extract the final cost savings while their perceived window of opportunity remains open.
Qantas is currently taking an extremely hard-line approach to its industrial relations. At present Qantas is asking its short haul pilots and the NJS pilots to give away hard-earned conditions in exchange for no wage increases. The threat is that it will provide the incoming aircraft (in this case A321-XLRs and A220s) to another group.
Qantas is also fiercely prosecuting their latest group wages policy (amended over the pandemic) of a two-year wage freeze followed by 2% annual increases. This is in the face of 5.1% inflation and before a possible change of government. Alliance and Rex are taking similarly hard-line approaches, demanding concessions and/or threatening job security. These approaches are opportunistic and will not be sustainable post-pandemic, especially as the demand for experienced pilots increases.
We urge all members to think carefully before giving away hard-earned conditions. Once lost, these conditions can be extremely difficult to regain. There can of course be situations where making concessions is the rational and best course of action. These occasions are rare and only occur when faced with a genuine reason and/or credible threat. In the current context, members need to determine whether threats of giving new aircraft to another pilot group is credible or if it is simply a cynical and opportunistic tactic by the Qantas Industrial Relations Department before the pandemic is over.
Right now, Jetstar has grown its pilot resources above pre-pandemic levels and has large training requirements, Network is under enormous training pressures and is having to allow its seconded pilots to return elsewhere in the group, Alliance Airlines cannot maintain crew on its E190 and the QantasLink Dash-8 operation is recruiting strongly and planning for high levels of attrition.
There is also the question of how much the redundancy liability would be if the A321 was not used to replace the B737 at Qantas short haul and the A220 was not used to replace the B717 at NJS. That is before considering our response and the possible legal implications of such a move by Qantas.
Right now, Australian pilots need to “hold steady”. Be rational and measured. Do not be rattled by the desperate and opportunistic threats (veiled or not) by various aviation employers. Carefully consider whether their threats are credible. Listen to your AFAP pilot representatives and speak to our experienced industrial and legal staff.
We will keep you posted on developments.
Yours sincerely
Simon Lutton
Executive Director
Australian Federation of Air Pilots
Last edited by Jet Jockey; 21st May 2022 at 01:02.