AIPA Media Release
Tuesday, 6 September 2011
Jetconnect remains a sham, AIPA concerned by FWA ruling
The Australian and International Pilots Association has described today’s ruling by Fair Work Australia, regarding NZ-based Qantas subsidiary Jetconnect, as disappointing and concerning.
Jetconnect operates Qantas flights into and out of New Zealand. Although these flights appear to be regular Qantas flights – with flying kangaroo livery, QF flightcodes and Qantas crew uniforms – since 2010 they have actually been operated by the wholly-owned, NZ-based company.
Through this arrangement, Qantas Group is able to employ pilots and crew on New Zealand wages and conditions. Jetconnect also pays its tax in New Zealand instead of Australia.
Today, in a 2-1 split decision, the FWA bench ruled that it was unable to prevent Qantas Group from using the hollow company to employ pilots and crew flying into and out of Australia on lower New Zealand wages and conditions.
However Senior Deputy Drake did find that on the merits and evidence, Jetconnect is indeed a sham company and a mere agent of Qantas Group.
AIPA President Captain Barry Jackson said although he was disappointed by the overall ruling, it was gratifying to read Senior Deputy Drake’s assessment.
"AIPA has said from the start that Jetconnect is nothing short of a sham operation and Senior Deputy Drake’s assessment confirms that view," Capt. Jackson said.
"Qantas management have been cynically using this hollow shell of a company to avoid awarding employees Australian wages and conditions on what are ostensibly Qantas flights.
"The whole Jetconnect operation has been nothing short of a deception. When passengers purchase a Qantas ticket and then board a plane with a flying roo on the tail, they are entitled to expect that their pilots and crew and fully-fledged Qantas employees.
"That the Qantas Group can continue in this vein sends a worrying signal to Australian corporations around the country. Imagine if one of the big miners is able to establish a wholly-controlled labour-hire company in say, Indonesia, and use employees on Indonesian wages and conditions to undercut Australian workers.
"This ruling demonstrates the current limits of the Fair Work Act and legislative reform is now needed to enable Fair Work Australia to intervene in cases such as this to protect the rights of Australian workers. AIPA will now consider an appeal."