Cut rate crew for Qantas - Thin edge of the wedge?
Scott Rochfort
SMH
November 27, 2007 - 4:01PM
Qantas has confirmed it plans to hire 2000 international flight attendants on substantially lower rates of pay over the next three years, after striking a deal with the union representing its long-haul cabin crew.
Following revelations in the Herald last week about Qantas's plans to hire lower paid staff via a new business subsidiary - QF Cabin Crew Pty Ltd - the airline struck a deal with the Flight Attendants Association last night. Under the deal, all new cabin crew will be paid the same as Jetstar crews.
They will also have to work more than 30 per cent more hours than Qantas long-haul crews for around 25 per cent less money, or about half the pay on an hourly basis.
Qantas chief executive Geoff Dixon has lauded the deal as "a positive outcome for all concerned".
"This agreement will help provide the level of competitiveness Qantas must have in the highly competitive international aviation industry," Mr Dixon said in a statement.
Qantas will hire the first 550 lower paid crew by June next year in preparation for the first deliveries of its Airbus A380 superjumbos. The airline's introduction of Boeing 787s into its fleet will require it to ramp up its crew numbers dramatically by 2010.
However, in a bid to appease its existing 3000 long-haul cabin crew based in Australia, Qantas has agreed to a new five-year pay deal.
Under the agreement, existing crews will get a 3 per cent per annum pay rise, increased superannuation benefits, extra parental leave and improved chances of promotion. If the deal is approved by members of the Flight Attendants Association of Australia's long-haul arm, existing crews will also get a $3000 sign-on bonus. Existing crews will also not have to work the extra 50-odd hours the new lower-paid crews will have to work each eight -week roster period.
In a bid to arrest the low morale among its cabin crew, Qantas has agreed to boost the number of crews on its 747s (with the new premium economy class) with one new crew member and provide more flying hours on regional routes in Asia to long-haul crew. At present Qantas has increased numbers of low-paid casual staff and domestic flight attendants on flights into China, India and Hong Kong.
Qantas has also agreed to cap the level of overseas cabin crew at 25 per cent, or after the new crew intake, at about 1250. This will allow Qantas to hire about 400 more crew at its Auckland, Bangkok and London bases.
The Flight Attendants Association of Australia has claimed victory. The head of its international division Michael Mijatov said the union had "secured the future of existing cabin crew and beyond that improved" their pay and conditions.
In light of Qantas making 1000 long-haul cabin crew redundant in recent years - despite growing its fleet - Mr Mijatov said there was the risk Qantas could make the remainder of its Australian crews redundant and replace them with lower paid non-unionised crews on AWAs.
"We were looking down the barrel of actually being shut down," he said. The new lower paid crews are entitled to sign up as union members.
Despite the fact that the new cabin crew members hired by the airline will be on lower pay, Mr Mijatov said the union had secured some good benefits for them compared with Jetstar crews.
Qantas chief executive Geoff Dixon has lauded the deal as "a positive outcome for all concerned"