Nudlaug
29th Dec 2005, 08:44
http://www.smh.com.au/news/business/qantas-ground-jobs-hang-on-air-nz-decision/2005/12/28/1135732641776.html
Qantas ground jobs hang on Air NZ decision
Another 200 Qantas jobs hang in the balance until Air New Zealand announces the winner of its new Australian contract for ground-handling services, probably early in the new year.
Air NZ has used Qantas as its ground handler in Australia since the 1960s. It is Qantas's biggest foreign customer for those ground services.
But as part of its bid to slash the costs of its money-losing trans-Tasman operations, the New Zealand carrier has requested proposals for a new ground-handling contract.
The airline's chief executive, Rob Fyfe, has already said the biggest cost-cutting opportunity Air NZ and its low-cost subsidiary, Freedom Air, have this side of the Tasman is to renegotiate and combine their ground-handling contracts.
Qantas faces stiff competition from rival ground handlers such as Menzies Aviation, Patrick Air Services and Aero-Care.
About 300 Qantas ground staff lost their jobs in October when Singapore Airlines ditched its 40-year-old ground-handling contract with Qantas.
Singapore Air awarded its Sydney and Brisbane contract to a Patrick and Aero-Care joint venture and its Melbourne contract to Menzies.
Air NZ's delayed decision is believed to be a result of the carrier realising the complexities of re-awarding the contract. It covers ramp handling (aircraft loading), passenger services such as check-in and baggage handling, cargo and line services (engineering checks).
There is growing speculation Qantas will keep the contract.
In June, Air NZ's Rob Fyfe said Freedom Air's ground-handling contracts in Australia cost about half of Air NZ's.
Qantas's recently established low-cost ground-handling subsidiary, Express Ground Handling (EGH), has not applied for the Air NZ contract. But this has not stopped speculation Qantas will eventually move more of its ground handling to EGH to slash costs.
EGH was set up last year to help handle Jetstar's ground services. Compared to Qantas ground handlers, EGH staff are on less pay and do not earn the same shift or special allowances.
Qantas ground crews, for instance, earn $3.68 each time they clean up "nightsoil" or faeces, get $2.10 for carrying a coffin and an $8.50 meal allowance. EGH staff get no nightsoil allowance, $1.98 for carrying a coffin and an $8.14 meal allowance.
Compared to Qantas ground crews, who earn up to $905.70 a week in base pay, the highest paid EGH ground crews get $772.56 a week. Unlike Qantas ground crews, which recently negotiated a 3 per cent annual pay rise through the Transport Workers Union, EGH staff only received a 2 per cent annual rise.
Patrick, which recently won the "ramp-handling" contract to load United Airlines planes in Sydney and Melbourne from Menzies, and its partner Aero-Care have non-unionised staff.
Menzies already does Freedom Air's ground handling in Melbourne and Sydney and has applied to do Air NZ's in the two cities.
The 17 airlines for which Menzies does ground handling in Sydney include Emirates, Cathay Pacific and FedEx.
Qantas ground jobs hang on Air NZ decision
Another 200 Qantas jobs hang in the balance until Air New Zealand announces the winner of its new Australian contract for ground-handling services, probably early in the new year.
Air NZ has used Qantas as its ground handler in Australia since the 1960s. It is Qantas's biggest foreign customer for those ground services.
But as part of its bid to slash the costs of its money-losing trans-Tasman operations, the New Zealand carrier has requested proposals for a new ground-handling contract.
The airline's chief executive, Rob Fyfe, has already said the biggest cost-cutting opportunity Air NZ and its low-cost subsidiary, Freedom Air, have this side of the Tasman is to renegotiate and combine their ground-handling contracts.
Qantas faces stiff competition from rival ground handlers such as Menzies Aviation, Patrick Air Services and Aero-Care.
About 300 Qantas ground staff lost their jobs in October when Singapore Airlines ditched its 40-year-old ground-handling contract with Qantas.
Singapore Air awarded its Sydney and Brisbane contract to a Patrick and Aero-Care joint venture and its Melbourne contract to Menzies.
Air NZ's delayed decision is believed to be a result of the carrier realising the complexities of re-awarding the contract. It covers ramp handling (aircraft loading), passenger services such as check-in and baggage handling, cargo and line services (engineering checks).
There is growing speculation Qantas will keep the contract.
In June, Air NZ's Rob Fyfe said Freedom Air's ground-handling contracts in Australia cost about half of Air NZ's.
Qantas's recently established low-cost ground-handling subsidiary, Express Ground Handling (EGH), has not applied for the Air NZ contract. But this has not stopped speculation Qantas will eventually move more of its ground handling to EGH to slash costs.
EGH was set up last year to help handle Jetstar's ground services. Compared to Qantas ground handlers, EGH staff are on less pay and do not earn the same shift or special allowances.
Qantas ground crews, for instance, earn $3.68 each time they clean up "nightsoil" or faeces, get $2.10 for carrying a coffin and an $8.50 meal allowance. EGH staff get no nightsoil allowance, $1.98 for carrying a coffin and an $8.14 meal allowance.
Compared to Qantas ground crews, who earn up to $905.70 a week in base pay, the highest paid EGH ground crews get $772.56 a week. Unlike Qantas ground crews, which recently negotiated a 3 per cent annual pay rise through the Transport Workers Union, EGH staff only received a 2 per cent annual rise.
Patrick, which recently won the "ramp-handling" contract to load United Airlines planes in Sydney and Melbourne from Menzies, and its partner Aero-Care have non-unionised staff.
Menzies already does Freedom Air's ground handling in Melbourne and Sydney and has applied to do Air NZ's in the two cities.
The 17 airlines for which Menzies does ground handling in Sydney include Emirates, Cathay Pacific and FedEx.