Actu Media Release On Qantas Buyout
QANTAS UNIONS FEAR PRIVATE EQUITY TAKEOVER WILL PUT THOUSANDS OF JOBS AND
PAY AT RISK
Unions fear the takeover of Qantas by a private equity consortium will cost
thousands of jobs and put downward pressure on workers' wages and conditions
while bonuses for senior executives will go through the roof.
Qantas employs around 37,000 staff with more than 90% union members.
ACTU Secretary Greg Combet and Qantas unions issued the following statement
on the takeover bid announced today:
"This takeover could spell a significant reduction in workers' pay and
conditions and the loss of thousands of Australian jobs.
In recent years Qantas staff have borne the burden of the company's drive
for a stronger competitive position and the workers have a right to be very
disappointed that their jobs and wages and conditions are now at further
risk.
Qantas workers have experienced an average pay cut in real terms of more
than 3% in recent years, and yet company profits have soared and salaries
for senior management have risen by more than 40%.
Senior Qantas executives are also set to share in a $110 million incentive
scheme should the private equity bid succeed.
Private equity funds are interested in short term benefits and unions are
very worried that this is likely to be achieved via the outsourcing of jobs
overseas, the sell-off of business units and the slashing of services,
including regional airline routes.
A large component of the finance being used to purchase Qantas is borrowed
money and the company's debt levels could double if the takeover is
successful.
Again, workers have a right to feel cheated after years of Qantas demanding
wage restraint from its workforce in order to reduce debt and to allow the
purchase of new planes.
Unions are also troubled by the fact that the Howard Government's new IR
laws have made the take over of Qantas a more attractive proposition because
they allow major cuts to workers' wages and conditions in a number of ways.
Qantas has already started the process of cutting workers' pay through the
introduction of Australian Workplace Agreements.
In the likely event the company is restructured, it is also possible under
the IR laws for workers to lose all their terms and conditions including
entitlements to public holidays, leave loadings, penalties, allowances and
redundancy pay - receiving only $13.47 per hour and four other minimum
conditions.
Despite our strong opposition to the sale, unions have a long-standing
relationship with Qantas management that we will work hard to maintain in
order to protect the interests of employees," said Mr Combet.