480 jobs go in Qantas closure
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"UNIONS have warned of a serious industrial confrontation with Qantas if it sends jobs offshore, action that could disrupt the Commonwealth Games.
Three hundred delegates marched to the company's Melbourne headquarters today and called for Qantas (qan.ASX:Quote,News) to rule out sending maintenance work to China and slashing 2500 Australian jobs.
Australian Manufacturing Workers' Union (AMWU) delegates from across Victoria, including some Qantas staff, protested loudly in front of the company's Melbourne headquarters for about 30 minutes today.
AMWU secretary Doug Cameron said Qantas chairman Geoff Dixon's response at a meeting with unions tomorrow would determine if industrial action would disrupt Commonwealth Games visitors.
After the protest Mr Cameron told the media that sending jobs to China would "no doubt" compromise Qantas' safety record.
"Why would you hand a 100-per-cent (no-fatality) record to someone else and put the Australian public in danger?" he said.
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He said the union would at the midday meeting tomorrow tell Qantas to put jobs and safety ahead of profit.
"If you are saying jobs are going to China, then you are in for a fight," he said.
Asked if the industrial action would disrupt the Commonwealth Games, Mr Cameron said it was up to Mr Dixon.
"If Qantas do announce jobs will go to China tomorrow, then a major campaign will ensue," Mr Cameron said.
"We don't want to disrupt the Australian flying public, we don't want to disrupt the Commonwealth Games, it will only be as a last resort.
"This is in Geoff Dixon's hands."
Mr Cameron would not be drawn on the nature of the industrial action.
Qantas chairwoman Margaret Jackson said last week the future of the 2500 engineering and maintenance jobs would be decided soon.
The company has threatened to shift the jobs offshore if it cannot cut costs, which it says are needed to make it competitive against specialist maintenance companies.
But Mr Cameron today said Qantas maintenance staff typically earned $45,000 a year and could not afford a cut in salary.
"It's short-termism at its worse, it's bad management," he said.
"We are hopeful that Qantas will do the right thing tomorrow."
"Qantas should be the spirit of Australia, not the spirit of China."
Three hundred delegates marched to the company's Melbourne headquarters today and called for Qantas (qan.ASX:Quote,News) to rule out sending maintenance work to China and slashing 2500 Australian jobs.
Australian Manufacturing Workers' Union (AMWU) delegates from across Victoria, including some Qantas staff, protested loudly in front of the company's Melbourne headquarters for about 30 minutes today.
AMWU secretary Doug Cameron said Qantas chairman Geoff Dixon's response at a meeting with unions tomorrow would determine if industrial action would disrupt Commonwealth Games visitors.
After the protest Mr Cameron told the media that sending jobs to China would "no doubt" compromise Qantas' safety record.
"Why would you hand a 100-per-cent (no-fatality) record to someone else and put the Australian public in danger?" he said.
Advertisement:
He said the union would at the midday meeting tomorrow tell Qantas to put jobs and safety ahead of profit.
"If you are saying jobs are going to China, then you are in for a fight," he said.
Asked if the industrial action would disrupt the Commonwealth Games, Mr Cameron said it was up to Mr Dixon.
"If Qantas do announce jobs will go to China tomorrow, then a major campaign will ensue," Mr Cameron said.
"We don't want to disrupt the Australian flying public, we don't want to disrupt the Commonwealth Games, it will only be as a last resort.
"This is in Geoff Dixon's hands."
Mr Cameron would not be drawn on the nature of the industrial action.
Qantas chairwoman Margaret Jackson said last week the future of the 2500 engineering and maintenance jobs would be decided soon.
The company has threatened to shift the jobs offshore if it cannot cut costs, which it says are needed to make it competitive against specialist maintenance companies.
But Mr Cameron today said Qantas maintenance staff typically earned $45,000 a year and could not afford a cut in salary.
"It's short-termism at its worse, it's bad management," he said.
"We are hopeful that Qantas will do the right thing tomorrow."
"Qantas should be the spirit of Australia, not the spirit of China."
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Presentation screens have been set up in H271 in Sydney and management wont say for what reason except that they're not for a road show.
They also won't look you in the eye when you ask them.
One hour to go.
They also won't look you in the eye when you ask them.
One hour to go.
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HOT OF THE PRESS
QANTAS announced today it was cutting up to 480 jobs by closing its heavy maintenance operations in Sydney, raising the prosect of severe disruption to next week's Commonwealth Games if unions follow through with threatened industrial action.
The airline said today the B747 maintenance operations would close in May and the decision follows a review of all its aircraft engineering operations.
Qantas chief executive Geoff Dixon said the airline planned to achieve savings of about $100 million a year from restructuring all of its engineering operations, principally through consolidation, process improvements and more flexible work rules.
Union reaction has not yet been announced but leaders have threatened potentially crippling industrial action with just days to go before the Commonwealth Games.
Mr Dixon said the review would initially mean Qantas invested in, and retained, its wide-body heavy maintenance facilities in Australia.
"A longer term commitment to retaining the operations in Australia will depend on Qantas achieving competitive benchmarks with the larger global Maintenance Repair and Overhaul providers (MROs) now dominating world aviation.
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"Retaining three wide-body maintenance facilities in Australia is no longer viable under this scenario. We have one chance to make this work and we are determined to succeed."
The Federal Government has warned Qantas that it considers it strongly in the national interest for the heavy maintenance operations to remain in Australia.
Mr Dixon said Qantas had to be competitive in every area in which it invested as the company moved towards a cost base that could ensure profitable operations with an oil price above $US60 a barrel.
He said the closure of the Sydney base would result in the loss of about 480 jobs.
"However, through re-deployment the number of people who leave the company as a result of this decision could reduce to around 340."
Mr Dixon said the review at Qantas Engineering would mean:
Heavy maintenance for Qantas' Boeing 747 fleet being transferred from Sydney to the airline's base in Avalon, Victoria, with an increase in employment opportunities at Avalon.
Heavy maintenance for the B767 fleet to continue at the airline's new purpose-built facility in Brisbane, also with increased employment opportunities.
A review in the next six months of the airline's narrow-body aircraft heavy maintenance operations, now out at Tullamarine in Melbourne.
An investment of about $50 million in infrastructure and technology to aid the restructuring.
Qantas Engineering seeking third-party work within the region when the restructuring was complete.
A commitment to retain a comprehensive apprentice program for the training of future aviation engineers in Australia.
Mr Dixon said the decision to close the airline's Sydney heavy maintenance base, after more than 55 years of operation, was regretted, but necessary.
"We have severe space limitations at Sydney and the limitations will increase in future years," he said
"Following this decision, we will still have more than 2900 people employed in engineering in Sydney as well as almost 18,000 Sydney-based staff in other departments.
"We would need to vacate by 2009, or 2010 at the latest, even if the Sydney base had provided the most efficient outcome for Qantas.
QANTAS announced today it was cutting up to 480 jobs by closing its heavy maintenance operations in Sydney, raising the prosect of severe disruption to next week's Commonwealth Games if unions follow through with threatened industrial action.
The airline said today the B747 maintenance operations would close in May and the decision follows a review of all its aircraft engineering operations.
Qantas chief executive Geoff Dixon said the airline planned to achieve savings of about $100 million a year from restructuring all of its engineering operations, principally through consolidation, process improvements and more flexible work rules.
Union reaction has not yet been announced but leaders have threatened potentially crippling industrial action with just days to go before the Commonwealth Games.
Mr Dixon said the review would initially mean Qantas invested in, and retained, its wide-body heavy maintenance facilities in Australia.
"A longer term commitment to retaining the operations in Australia will depend on Qantas achieving competitive benchmarks with the larger global Maintenance Repair and Overhaul providers (MROs) now dominating world aviation.
Advertisement:
"Retaining three wide-body maintenance facilities in Australia is no longer viable under this scenario. We have one chance to make this work and we are determined to succeed."
The Federal Government has warned Qantas that it considers it strongly in the national interest for the heavy maintenance operations to remain in Australia.
Mr Dixon said Qantas had to be competitive in every area in which it invested as the company moved towards a cost base that could ensure profitable operations with an oil price above $US60 a barrel.
He said the closure of the Sydney base would result in the loss of about 480 jobs.
"However, through re-deployment the number of people who leave the company as a result of this decision could reduce to around 340."
Mr Dixon said the review at Qantas Engineering would mean:
Heavy maintenance for Qantas' Boeing 747 fleet being transferred from Sydney to the airline's base in Avalon, Victoria, with an increase in employment opportunities at Avalon.
Heavy maintenance for the B767 fleet to continue at the airline's new purpose-built facility in Brisbane, also with increased employment opportunities.
A review in the next six months of the airline's narrow-body aircraft heavy maintenance operations, now out at Tullamarine in Melbourne.
An investment of about $50 million in infrastructure and technology to aid the restructuring.
Qantas Engineering seeking third-party work within the region when the restructuring was complete.
A commitment to retain a comprehensive apprentice program for the training of future aviation engineers in Australia.
Mr Dixon said the decision to close the airline's Sydney heavy maintenance base, after more than 55 years of operation, was regretted, but necessary.
"We have severe space limitations at Sydney and the limitations will increase in future years," he said
"Following this decision, we will still have more than 2900 people employed in engineering in Sydney as well as almost 18,000 Sydney-based staff in other departments.
"We would need to vacate by 2009, or 2010 at the latest, even if the Sydney base had provided the most efficient outcome for Qantas.
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Wait until the A-380 arrives; they'll have to re-open Sydney to even "heavier" maintenance. Especially with the Airbus history of scheduled and unscheduled maintenance
The latest news on the A380 is that ACS (aircraft customer services) hasn't been asked to bid for the A380 handling. Patricks have been approached!
Sorry to the base guy's - qantas has no idea of your value, especially with an aging jumbo fleet.
The latest news on the A380 is that ACS (aircraft customer services) hasn't been asked to bid for the A380 handling. Patricks have been approached!
Sorry to the base guy's - qantas has no idea of your value, especially with an aging jumbo fleet.