12.36pm: The federal government is threatening to intervene in an industrial dispute at Qantas, warning trade unions they should not set out to damage local industry.
Tourism Minister Martin Ferguson, following his address to an industry conference in Canberra, said the sector's patience was running out with the unions. "The sooner the parties get in a room and sort it out the better," he told reporters. If they did not, the government could require the parties to resolve their issues under the umbrella of the Fair Work Act.
The Act already provided that, in exceptional circumstances, industrial action that had wider implications than for just one business can be suspended or terminated if it threatened significant damage to the economy or to the welfare or safety of the population, Mr Ferguson said.
To me this like desperation. What this looks like is government sanctioned price controls.
Yes it may work in the short term, but is simply removes the incentive to bear enormous financial risks to become a pilot. Those that were thinking of coming back from overseas will consider this as a major risk. Those considering their options with respect to LWOP/ resignation will now add this their calculus. This could well push many to leave.
Price controls have almost always led to shortages & ultimately higher prices for the commodity that is capped, as producers simply stop producing or take their commodity elsewhere.