At the request of some AIPA Members who read Pprune, but are not able to attend Monday's 2 November AIPA AGM and wish to forward a Directed Proxy vote to the AIPA President, I hereby provide for readers in that situation, the following pertitant information:
AIPA Members input is needed to resolve alleged non- compliance with an AIPA COM Resolution:
· The need to deal with the QSAC resolution on the table for voting at the 2009 AIPA AGM arises because of the AIPA Executive’s seeming non-compliance with an AIPA Committee resolution of 11 August 2009. The relevant 11 August resolution states that any AIPA Executive instruction to Ian Woods to discontinue the Qantas Sale Act (QSA) matter; ‘is contingent upon the AIPA Executive satisfying itself that AIPA’s objectives are achieved in relation to Qantas Group career progression’.
· AIPA has not yet agreed with Qantas any group career progression whatsoever.
· AIPA has not explained to AIPA Members how the discontinuance of the Qantas Sale Act Case is advantageous to AIPA or Qantas Group Pilots
Why should AIPA pursue the Qantas Sale Act Case?
· Necessary pursuit the QSAC matter arises because of what global liberalisation of the aviation industry will allow to be done with Jetstar, but not with Qantas and what that means for all Qantas Group Pilots,
· Jetstar is arguably not bound by the same constraints as Qantas – Ie: it is not subject to the QSA,
· Very large reductions in aircraft leasing costs (~30% ) can be obtained by establishing a global aircraft leasing company partly owned by Qantas and Jetstar,
· However, unless agreed otherwise, nothing in law prevents Qantas from continuing to transfer to Jetstar International, flying that is, or has been, done by Qantas to Jetstar International and then crewing all such flying with off-shore pilots not on the seniority lists of either Qantas Mainline or Jetstar Australia.
· In the opinion of some Federal Politicians, the Qantas Sale Act was intended to prevent Qantas Airways Limited utilising Jetstar International the way it is,
· Senior Counsel advises that any view that the Qantas Sale Act doesn’t apply to Jetstar is a legal fiction.
What happens if AIPA can’t agree with the Company- group career progress and does not continue to support resolution of the QSA matter?
· Qantas will be free to keep in place and further exploit existing internal and external wages competition amongst Australian and Offshore Pilots,
· Unless prevented by binding, enforceable agreement or by law, Qantas can continue to:
o put downward wages pressure on the terms and conditions of Jetstar Australia Pilots by using Offshore Jetstar International Pilots to undercut them, and
o Using Jetstar Australia Pilots to put downwards wages pressure on the terms and conditions of Qantas Mainline Pilots in the same way.
· The end result is known as ‘Whip Sawing’ in the USA and left unchecked, will eat the heart out of the Qantas Group, its Australian Pilots and ultimately the entire Qantas Workforce.
Isn’t the downside for AIPA Cost Prohibitive?
· As far as I am aware,
o QSAC costs thus far to AIPA are in the vicinity $150,000,
o Qantas’ stated QSAC costs of $600,00 thus far, can no longer be visited upon AIPA,
o For IW to get the Case back to where it was, would cost AIPA approx $50,000,
o For IW to then run the case against Qantas would cost another $150,000,
o Should AIPA lose the case, total costs to AIPA would probably be around $400,000? The additional $200,000 being court ordered reimbursement of Qantas’ additional costs.
Kind Regards
Ian Woods
Last edited by WoodenEye; 31st Oct 2009 at 05:55.
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