Qantas sets up base in Wellington
NZ "Dominion Post"
Qantas sets up base in capital
13 August 2003
By MATHEW LOH HO-SANG
Qantas is taking advantage of lower labour costs to set up in Wellington.
Jetconnect (the business name for Qantas' New Zealand operations) general manager Grant Lilly confirmed yesterday that 80 crew would be based in Wellington.
The newly recruited flight attendants and pilots would start serving the trans-Tasman market, flying between Wellington and Brisbane, Sydney and Melbourne, from September 1.
"Jetconnect is Qantas' New Zealand domestic service with five 737s, but from September 1 we will add two more 737s and take over Qantas' trans-Tasman services out of Wellington," Mr Lilly said.
But the Flight Attendants' Union is unhappy that Wellington-based crew will be paid less than Australian-based staff doing the same work.
To save money and provide a Wellington base for Qantas, Jetconnect has recruited 41 cabin crew and 15 pilots, who will live in Wellington. This will increase to 60 cabin crew and 20 pilots by November.
Mr Lilly said the move would save money, but consumers would not benefit from immediate cuts to fares. "It's all about economics and we can deliver the product from a cheaper cost base from Wellington," he said. "And while we won't be cutting fares, we are focusing intently on getting into fighting shape so we can deliver competitive benefits in the long-term."
The flight attendants would be paid New Zealand market rates, which meant they would earn less than their counterparts in Australia.
"They do get significantly less, but that's the market rate and is just a reflection of a more competitive, lower cost employment environment."
Mr Lilly declined to detail the pay of Wellington-based flight attendants, but sources said they were being offered about $27,000.
Union spokesman Billy Boreham said Jetconnect were not paying market rates. The Wellington recruits were getting less than half the take-home pay of their Australian counterparts.
"That's not market rates."
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