Fri "The Australian"
Qantas faces strike threat
Steve Creedy and Brad Norington
October 22, 2004
QANTAS is preparing for major disruption to flights over the peak Christmas period, after unions yesterday warned of likely strikes over the airline's plans to base large numbers of staff overseas.
Qantas has admitted to training strikebreakers who would do the jobs of flight attendants and others expected to take industrial action.
The revelations came as Qantas flight attendants threatened to strike during December unless the airline put a limit on the number of flight attendants to be based overseas.
The Australian Services Union also threatened ground staff action if Qantas went ahead with plans to raise fees for its non-executive directors by 66per cent while workers received about 3per cent.
Strong prospects of industrial action affecting domestic and international flights over the busiest time of the year comes as the Howard Government foreshadows draconian reform of industrial relations legislation for a major assault on union power.
John Howard said last night he hoped the strike would not go ahead. He said he understood Qantas's reasons for wanting to base staff in London, considering it was an international airline in a global economy.
Qantas chief executive Geoff Dixon advised passengers to book tickets with confidence, saying flights would go ahead.
Mr Dixon warned unions the airline would do whatever necessary to keep flying and to wrest further productivity gains as it seeks to shore up its record profits against an expected onslaught by overseas carriers.
Qantas executives yesterday defended the airline's right to train "strikebreakers" and said it would continue to do so where necessary.
The comments came after shareholders voted to allow a cap on directors' fees to be increased by 66per cent from $1.5million to $2.5million.
The airline is already facing industrial action by international flight attendants over plans to start a base in London and has been training 350 "contingency workers" to fill in their gap.
Mr Dixon accused the flight attendants' union of "doing their best to damage this company commercially".
"Our intention is to look after our customers - the same way, I might add, as we look after our staff," Mr Dixon said after the airline's annual general meeting in Brisbane.
"We'll fly and we'll take every measure to ensure that we do fly - it's our right."
Mr Dixon stopped short of saying he was drawing one of his trademark lines in the sand for unions, but urged workers to look at what was happening with airlines overseas.
He pointed to US carriers slashing wages and restructuring under bankruptcy protection, and government-subsidised carriers, as the biggest threats.
Qantas's latest industrial threat was revealed when Australian Services Union assistant national secretary Linda White told shareholders staff were angry about the 66per cent raise in directors' fees in light of the 3per cent pay rises workers were being offered in enterprise bargaining negotiations.
Ms White, whose union represents about 12,000 Qantas workers and campaigned against the directors' increase, said "significant numbers" had signed a pledge to back an industrial campaign if the pay rise went through.
"As far as I can see it is a 66per cent pay rise, the staff are very angry (and) there will be ramifications," Ms White said.
Shareholders ignored the union's pleas and overwhelmingly approved the request to increase the maximum amount available each year for directors' fees.
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