The new Industrial Relations laws make the take over of Qantas an attractive proposition. It is now possible following a transmission of business for Qantas workers after 12 months to lose all their terms and conditions, including their redundancy entitlements and be covered only by the minimum rate of pay $13.47 per hour and 4 other basic minimum conditions.
The new IR laws also make it possible for the business to force employees to accept an employer Greenfield agreement. In most cases these so-called agreements remove all entitlements to public holidays, leave loadings, penalties, allowances, redundancy pay and often have a flat, usually low, hourly rate of pay.
Qantas has started the process through the introduction of Australian Workplace Agreements. The continued outsourcing of jobs overseas will gather pace should the private equity raiders succeed.
Even under the new IR laws, Qantas workers still have rights, that is why it is important that all the Qantas unions have agreed to work together to protect the Qantas workers Rights at Work.
Qantas management has more than $110 million reasons why they shouldn’t care. The private equity consortium has offered 180 senior Qantas management $110 million should the bid be accepted by Qantas management and the bid ultimately succeed. This is on average $611,000.00 payment per manager.
A large component of the finance being used to purchase
Qantas is borrowed money. There is lots of borrowed money.
Qantas’ debt levels are expected to double if the takeover is successful. Qantas workers have a right to feel cheated after years of Qantas demanding wage restraint from its workforce to reduce debt and to allow the purchase of new planes.
It is likely that Qantas’ credit rating will be downgraded if the buy-out succeeds. In the past Qantas has demanded job cuts and wage restraint, in part to protect Qantas’ credit rating. When millions of dollars are dangled in front of Qantas management, high debt is suddenly not a concern???