Qantas ‘We also call Auckland home’ – Plane Talking
Qantas ‘We also call Auckland home’
February 13, 2011 – 11:55 am, by Ben Sandilands
Qantas will be a big story this week because of pilot anger over pay negotiations, because of signals from management that international is bleeding money, and because of the filing of its half year to December 31 financial results this Thursday morning.
But there is another element, the Jetconnect case that has been brought against Qantas in Fair Work Australia.
Jetconnect, which is a 100 per cent owned NZ subsidiary, has taken over the routine full service Qantas flying between Australian and New Zealand in Boeing 737-800s.
This is a very important case. So much so Qantas is said to have directly approached politicians in Canberra to consider changes to laws that apply to foreign based Qantas pilots if it loses.
The fair reporting of legal disputes is difficult to assure in contemporary media.
In the legacy media, the evidence given in a case in an open hearing is privileged, but the media can be held to account for fair and accurate reporting, requiring both sides of the hearing to be reported, which in part heard cases or reserved (pending) decisions, no longer happens because the media, in 99 per cent of cases, cannot afford court reporters who will spend all day in a hearing.
If the Qantas ‘dingo’ had taken the union ‘baby’ this would not be a problem. Every syllable would be printed. We might even get televised proceedings.
So at this stage, a commentary on the Jetconnect case would be unfair. It will only become fair when a balanced account of a Fair Work Australia decision is published in the media, or made available on line in full, whenever a ruling is made.
What follows is an attempt to be fair.
The case which is in its closing stages was brought by the Australian and International Pilots Association against Qantas alleging that Jetconnect, which flies jets in Qantas colors between Australia and New Zealand, is a shell company set up to evade the terms and conditions of Australian awards by pretending to be a New Zealand subsidiary of the Qantas group.
It claims that this allows Qantas to export what were Australian jobs to New Zealand and save 40 per cent off the labor expense.
Qantas counter claims that Jetconnect is a New Zealand operation not controlled by Qantas but which employs pilots based in New Zealand.
However early this month Jetconnect’s chief executive officer, Paul Daff, told Fair Work Australia that the NZ company did not have any of its own bank accounts that he could remember, that Qantas moved funds into and out of the company without reference to himself, and that employees, which include Australian pilots living in New Zealand, were paid directly by Qantas.
The pilots are trained by Qantas, wear Qantas uniforms, and fly in jets painted in Qantas livery which are owned by Qantas.
It is fair to say that if the pilot union wins the case it could collapse the Qantas strategy of basing Australian registered Jetstar A330 jets, and its future 787 fleet, in Singapore to be flown by Australian and non Australian pilots under Singaporean labor arrangements.
This Thursday’s half yearly results briefing for media and analysts is shaping up a trying one for Qantas group CEO Alan Joyce.
He has already announced that international Qantas services are unsustainable and complained about foreign competition.
However Qantas is also caught up in problems of its own making, including failed fleet planning oversight, poor networking and scheduling decisions, and the loss of control over the quality and competency of heavy engine overhauls on Rolls-Royce power plants.