DirectAnywhere
22nd Oct 2004, 04:46
Transcript of last night's 7.30 report item for those who are interested/ missed it.
Also available at: 7.30 Report Transcript (http://www.abc.net.au/7.30/content/2004/s1225354.htm)
A bumpy ride ahead for Qantas
Reporter: Tim Lester
KERRY O'BRIEN: Qantas shareholders attending the airline's annual general meeting in Brisbane today got early warning of some serious turbulence ahead.
The message from chief executive Geoff Dixon was - "fasten your seatbelts, we could be in for a bumpy Christmas."
Despite initial denials, the airline today admitted to the 7:30 Report that it was training contract staff to keep the airline flying in the event of industrial action.
Four thousand Qantas flight attendants are threatening to strike over plans to relocate staff to London to cut costs.
In what could be seen after the emphatic return of the Howard Government as the opening play in a new industrial game, Qantas says it is determined to recalibrate its staff costs to maintain its competitive position.
In a moment I'll be talking with the PM.
But first, this report from business and economics editor Tim Lester.
MICHAEL MIJATOV, FLIGHT ATTENDANTS ASSOCIATION: This current management of Qantas has gone too far.
ERIKA GUTIERREZ, FORMER QANTAS TRAINEE: I think they've behaved appallingly.
They've misled.
KEVIN BROWN, QANTAS HUMAN RESOURCES MANAGER: The challenges remain ahead in terms of improving our efficiency and we're not going to take our foot off the accelerator.
TIM LESTER: Lunchtime today - a small group leaves a Sydney hotel in an unmarked bus.
Qantas now admits this is more than routine training.
It's about protecting the airline.
For the Flight Attendant's Union, this is guerrilla war.
Qantas is bussing in unwitting strike breakers.
MICHAEL MIJATOV: What it's doing with these people, playing with their lives, is utterly despicable.
KEVIN BROWN: With their threat of industrial action, we're going to put in place plans to ensure that our customers are protected.
TIM LESTER: They came to the lure of well paid, well travelled work with one of the world's finest airlines.
For now, all they're flying into is the eye of a nasty industrial storm.
ERIKA GUTIERREZ: It's like, you know, an opportunity that most people relish, you know, to work for Qantas and, you know, the flight attendant role is a very sort after role.
TIM LESTER: Sydney's Erika Gutierrez is the first of the Qantas fixed term trainees to speak openly and only because she's since quit the flight attendant's course.
ERIKA GUTIERREZ: I would never do it again, never do it again, absolutely not.
I took a risk in saying that, yes, I would do an 11 month contract.
TIM LESTER: In fact, the 27-year-old says she and others quit their full-time jobs on that promise of 11 months work.
And then turned up for their first day.
ERIKA GUTIERREZ: I've realised what I'd actually had signed up for, which was basically two weeks of training.
Once the training was completed, I would not be actually employed by Qantas, my contract would not commence until 11 December, so that approximately meant six to eight weeks without any work at all.
They also advised that you weren't to actually be employed by anybody else in that particular point in time, and if in the event that there were - there was strike action, then there may be an opportunity for us actually to fly, if not, basically, we would be paid out four week's wages, then on your merry way.
KEVIN BROWN: I'm not aware of that specific case.
I'm happy to take that up if she wants to get in contact with me.
MICHAEL MIJATOV: He intends to literally throw these people back on the street.
KEVIN BROWN: On the whole had very positive feedback from the vast majority of the fixed-termers.
TIM LESTER: Today, Michael Mijatov briefed union officials on the dispute brewing between Qantas and the airline's 4,000 long-haul flight attendants, his members.
MICHAEL MIJATOV: I don't think - I know that they've formed a judgment that they will fight for their job security.
TIM LESTER: So they'll strike?
MICHAEL MIJATOV: They will.
If they're forced to by Qantas they will.
TIM LESTER: They're fighting for a long-term limit on cabin crew numbers based overseas.
Qantas plans to put 400 in London from next June to save $18 million a year.
KEVIN BROWN: There is no risk of job security here and in fact many of the flight attendants have indicated an interest in pursuing this option.
MICHAEL MIJATOV: It is highly likely that there will be industrial action in December.
TIM LESTER: So Qantas has ramped up training of short-term cabin crew.
At its Brisbane annual general meeting this afternoon, the airline told us it will train 700 to 1,000 and will use them to blunt any strikes.
KEVIN BROWN: We're not going to be held hostage to their demands at this point in time.
TIM LESTER: Until now, Qantas has emphasised training fixed term staff is routine, a seasonal practice.
Today, Kevin Brown told me they've lifted numbers in the current flight attendants' program by more than 500 because of the industrial threat.
Strike breakers is an emotive term.
Instead, the airline talks about protecting passengers, but any pretense that this is business as usual has gone.
Qantas is mounting a major effort to take the sting out of strike action.
MATT CROWE, AVIATION ANALYST: If their fleet was grounded, it would be disastrous.
TIM LESTER: Aviation analyst Matt Crowe understands why Qantas feels vulnerable.
MATT CROWE: It's not the kind of industry, for example, like the waterfront reform where you can afford to have several months of strike - that would be suicide.
TIM LESTER: So why take on the flight attendants at all?
Well, Qantas argues it needs new flexibility to compete with airlines that enjoy government backing or simply more industrial freedom.
Only about one-third of domestic competitor Virgin Blue's staff are unionised and the airline deals with just three unions.
Qantas has almost two-thirds unionised and deals with 14 unions.
According to Qantas, Virgin Blue's staff earn 5 per cent to 15 per cent less than its staff.
Not to mention flexibility like Virgin Blue cabin crew and even CEO Brett Godfrey cleaning aircraft.
MATT CROWE: Well, industrial relations is probably the most important advantage that Virgin Blue has over Qantas.
It's the one thing that Qantas can't really copy Virgin Blue, is their industrial relations arrangements.
TIM LESTER: To some extent it has with JetStar, but that's too small a part of Qantas to solve the problem.
The national carrier now wants new industrial flexibility.
KEVIN BROWN: It's going to be essential, our wages bill is larger than the vast majority of Australian corporations' total expenses.
We spend over $2.6 billion a year in employing over 37,000 individuals.
LINDA WHITE, AUSTRALIAN SERVICES UNION: Last financial year the productivity increase of the employees were unprecedented in the airlines' history and in Australia, if not the world, they achieved more profit with less people.
I can't for the life of me see what Qantas is getting at.
TIM LESTER: And Linda White's union representing 12,000 Qantas staff says the airline's search for efficiency hasn't stopped executive salaries soaring.
LINDA WHITE: In 1999 the CEO's salary was about 30 times a professional engineer, so we're talking a person who has engineering qualifications, these days at Qantas, the CEO's salary is about 60 times a professional engineer and that's a staggering growth and differential in such a short period of time.
TIM LESTER: The ASU is also threatening industrial action.
Linda White says now the flying kangaroo is confronting strikes with an alternative workforce, others will follow.
LINDA WHITE: This is going to be common place in this country.
TIM LESTER: Qantas can easily point to other airlines with competitive advantages.
But in one sense, the airline is its own worst enemy.
In a business where bankruptcy is way too common, Qantas recently reported a before-tax profit of $968 million.
It's hard to stir the urgency for change when the bottom line looks so good.
GEOFF GALLOP DIXON, CHIEF EXECUTIVE, QANTAS: Our intention is to look after our customers.
The same way I might add as we look after our staff and we'll fly.
And we'll take every measure to ensure we do fly.
Also available at: 7.30 Report Transcript (http://www.abc.net.au/7.30/content/2004/s1225354.htm)
A bumpy ride ahead for Qantas
Reporter: Tim Lester
KERRY O'BRIEN: Qantas shareholders attending the airline's annual general meeting in Brisbane today got early warning of some serious turbulence ahead.
The message from chief executive Geoff Dixon was - "fasten your seatbelts, we could be in for a bumpy Christmas."
Despite initial denials, the airline today admitted to the 7:30 Report that it was training contract staff to keep the airline flying in the event of industrial action.
Four thousand Qantas flight attendants are threatening to strike over plans to relocate staff to London to cut costs.
In what could be seen after the emphatic return of the Howard Government as the opening play in a new industrial game, Qantas says it is determined to recalibrate its staff costs to maintain its competitive position.
In a moment I'll be talking with the PM.
But first, this report from business and economics editor Tim Lester.
MICHAEL MIJATOV, FLIGHT ATTENDANTS ASSOCIATION: This current management of Qantas has gone too far.
ERIKA GUTIERREZ, FORMER QANTAS TRAINEE: I think they've behaved appallingly.
They've misled.
KEVIN BROWN, QANTAS HUMAN RESOURCES MANAGER: The challenges remain ahead in terms of improving our efficiency and we're not going to take our foot off the accelerator.
TIM LESTER: Lunchtime today - a small group leaves a Sydney hotel in an unmarked bus.
Qantas now admits this is more than routine training.
It's about protecting the airline.
For the Flight Attendant's Union, this is guerrilla war.
Qantas is bussing in unwitting strike breakers.
MICHAEL MIJATOV: What it's doing with these people, playing with their lives, is utterly despicable.
KEVIN BROWN: With their threat of industrial action, we're going to put in place plans to ensure that our customers are protected.
TIM LESTER: They came to the lure of well paid, well travelled work with one of the world's finest airlines.
For now, all they're flying into is the eye of a nasty industrial storm.
ERIKA GUTIERREZ: It's like, you know, an opportunity that most people relish, you know, to work for Qantas and, you know, the flight attendant role is a very sort after role.
TIM LESTER: Sydney's Erika Gutierrez is the first of the Qantas fixed term trainees to speak openly and only because she's since quit the flight attendant's course.
ERIKA GUTIERREZ: I would never do it again, never do it again, absolutely not.
I took a risk in saying that, yes, I would do an 11 month contract.
TIM LESTER: In fact, the 27-year-old says she and others quit their full-time jobs on that promise of 11 months work.
And then turned up for their first day.
ERIKA GUTIERREZ: I've realised what I'd actually had signed up for, which was basically two weeks of training.
Once the training was completed, I would not be actually employed by Qantas, my contract would not commence until 11 December, so that approximately meant six to eight weeks without any work at all.
They also advised that you weren't to actually be employed by anybody else in that particular point in time, and if in the event that there were - there was strike action, then there may be an opportunity for us actually to fly, if not, basically, we would be paid out four week's wages, then on your merry way.
KEVIN BROWN: I'm not aware of that specific case.
I'm happy to take that up if she wants to get in contact with me.
MICHAEL MIJATOV: He intends to literally throw these people back on the street.
KEVIN BROWN: On the whole had very positive feedback from the vast majority of the fixed-termers.
TIM LESTER: Today, Michael Mijatov briefed union officials on the dispute brewing between Qantas and the airline's 4,000 long-haul flight attendants, his members.
MICHAEL MIJATOV: I don't think - I know that they've formed a judgment that they will fight for their job security.
TIM LESTER: So they'll strike?
MICHAEL MIJATOV: They will.
If they're forced to by Qantas they will.
TIM LESTER: They're fighting for a long-term limit on cabin crew numbers based overseas.
Qantas plans to put 400 in London from next June to save $18 million a year.
KEVIN BROWN: There is no risk of job security here and in fact many of the flight attendants have indicated an interest in pursuing this option.
MICHAEL MIJATOV: It is highly likely that there will be industrial action in December.
TIM LESTER: So Qantas has ramped up training of short-term cabin crew.
At its Brisbane annual general meeting this afternoon, the airline told us it will train 700 to 1,000 and will use them to blunt any strikes.
KEVIN BROWN: We're not going to be held hostage to their demands at this point in time.
TIM LESTER: Until now, Qantas has emphasised training fixed term staff is routine, a seasonal practice.
Today, Kevin Brown told me they've lifted numbers in the current flight attendants' program by more than 500 because of the industrial threat.
Strike breakers is an emotive term.
Instead, the airline talks about protecting passengers, but any pretense that this is business as usual has gone.
Qantas is mounting a major effort to take the sting out of strike action.
MATT CROWE, AVIATION ANALYST: If their fleet was grounded, it would be disastrous.
TIM LESTER: Aviation analyst Matt Crowe understands why Qantas feels vulnerable.
MATT CROWE: It's not the kind of industry, for example, like the waterfront reform where you can afford to have several months of strike - that would be suicide.
TIM LESTER: So why take on the flight attendants at all?
Well, Qantas argues it needs new flexibility to compete with airlines that enjoy government backing or simply more industrial freedom.
Only about one-third of domestic competitor Virgin Blue's staff are unionised and the airline deals with just three unions.
Qantas has almost two-thirds unionised and deals with 14 unions.
According to Qantas, Virgin Blue's staff earn 5 per cent to 15 per cent less than its staff.
Not to mention flexibility like Virgin Blue cabin crew and even CEO Brett Godfrey cleaning aircraft.
MATT CROWE: Well, industrial relations is probably the most important advantage that Virgin Blue has over Qantas.
It's the one thing that Qantas can't really copy Virgin Blue, is their industrial relations arrangements.
TIM LESTER: To some extent it has with JetStar, but that's too small a part of Qantas to solve the problem.
The national carrier now wants new industrial flexibility.
KEVIN BROWN: It's going to be essential, our wages bill is larger than the vast majority of Australian corporations' total expenses.
We spend over $2.6 billion a year in employing over 37,000 individuals.
LINDA WHITE, AUSTRALIAN SERVICES UNION: Last financial year the productivity increase of the employees were unprecedented in the airlines' history and in Australia, if not the world, they achieved more profit with less people.
I can't for the life of me see what Qantas is getting at.
TIM LESTER: And Linda White's union representing 12,000 Qantas staff says the airline's search for efficiency hasn't stopped executive salaries soaring.
LINDA WHITE: In 1999 the CEO's salary was about 30 times a professional engineer, so we're talking a person who has engineering qualifications, these days at Qantas, the CEO's salary is about 60 times a professional engineer and that's a staggering growth and differential in such a short period of time.
TIM LESTER: The ASU is also threatening industrial action.
Linda White says now the flying kangaroo is confronting strikes with an alternative workforce, others will follow.
LINDA WHITE: This is going to be common place in this country.
TIM LESTER: Qantas can easily point to other airlines with competitive advantages.
But in one sense, the airline is its own worst enemy.
In a business where bankruptcy is way too common, Qantas recently reported a before-tax profit of $968 million.
It's hard to stir the urgency for change when the bottom line looks so good.
GEOFF GALLOP DIXON, CHIEF EXECUTIVE, QANTAS: Our intention is to look after our customers.
The same way I might add as we look after our staff and we'll fly.
And we'll take every measure to ensure we do fly.