Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

QF Group Ground Handling Cuts

Old 29th Aug 2020, 08:35
  #61 (permalink)  
Join Date: Jul 2009
Location: Australia
Posts: 680
Originally Posted by plainmaker View Post
I think this is AJ's way of getting rid of the TWU - who are a PITA as far as management are concerned. I assume that this also means the demise of the old Qantas Transport team - those who used to do the crew transfers QCC to airside and return, plus tech crew home transport? (Showing my age now).

Used to be that Ground handling was a very profitable part of the Qantas Airports 'division' - recall many times costing up bids for other airlines handling at SYD International. Critical issue was when you had an AOG close to the curfew, you had your own staff to handle the pax to hotels exercise (and return). TWU used to be rostered until 0100, so the staff was on hand. A certain accountant put paid to that and it only took several weeks before the late LAX departure went tech. So due to Flight time limitations, new crew to be called out and the service was a no-go. The pax had to shuffled off to hotels etc, but the TWU pulled the 'sorry no overtime' and shot through when the shift was due to finish. Took an eternity for the pax to get to their hotels, only to be waken up for a 0600 departure. Would like to have been a fly on the wall as the (few) management did the bags, organised the transfers and hotels, Plus did all the rebookings for the displaced pax. And our American brethren were SO accommodating and flexible in their requests! Heard through the grapevine the overall 'impact' was in excess of $100k and that was in the early 90's.

Seems they never learn about the full outsource model - no 'ownership', no loyalty, and in the end it hurts your business. Ask PanAm and TWA.
Pan Am until the day they stopped operating to Australia had their own staff on their counters... that was the case with PA just about everywhere, one of the reasons their costs were so high.
AerialPerspective is offline  
Old 29th Aug 2020, 11:21
  #62 (permalink)  
Join Date: Jul 2010
Location: Asia
Posts: 918
Owning expensive equipment or employing people directly is only justified if full use is being made of the resource, there are three levels:

1. Employ the minimum number that can be fully utilised and contract in when extra is needed.
2. Employ the average number used and contract in or out depending on the workload.
3. Employ full coverage and contract out to keep busy during downtime.

Foreign airlines with a single daily flight simply cannot justify maintaining full time support at the destination and often contract out most of the functions whilst retaining their own station manager. Non competing airlines or members of the same alliance often support each other.

Once airlines get a taste of outsourcing it doesn’t take them long to go a step further and contract out everything they can possibly save money on. An airline can be “virtual” and need only employ a few managers directly. Aircraft can be leased, maintenance, ground handling, catering, call centre, reservations, simulator hours etc can all be put out to the lowest bidder.

Problems arise when asked to support a direct competitor, possibly from another alliance. This is where independent ground handlers come in, remember QF refused handling to Tiger Airways when they started domestic operations in Australia.
krismiler is offline  
Old 3rd Sep 2020, 12:49
  #63 (permalink)  
Join Date: May 2005
Location: QLD - where drivers are yet to realise that the left lane goes to their destination too.
Posts: 2,338
I don’t need to explain what we go through to get onto the flight deck of an airliner and stay there, we deserve what we earn.
More a supply and demand situation really. Now it's over supply and under demand. Let's see where that goes in the long run.
Traffic_Is_Er_Was is offline  
Old 4th Sep 2020, 15:33
  #64 (permalink)  
Join Date: Nov 2016
Location: Sydaknee
Posts: 7
Originally Posted by Derfred View Post
I think you’ve over-simplified it.

If, pre-COVID, Alan had made ALL 2500 ground staff redundant and effectively hired most of them back through contracting companies, whether these companies were owned by Qantas or not, he would have been highly in breach of Australian workplace law. Qantas would have been taken to court, and lost. There is plenty of case law for this. (Yes, the equivalent can be legally achieved over time through a thousand cuts, but not in a case lot like this).

He is doing it now, presumably on the basis that these people don’t have “useful work” anyway. So he has, effectively, found a loophole that he can capitalise on, free of litigation. In the “crisis”, he has discovered something to his advantage that he never would have been able to do otherwise.

The Australian concept of “stand-down”, which was only intended for a short-term stoppage, is gathering new consequences daily. This move is not in the spirit of “keeping jobs” as publicly advertised by Alan. This move is an opportunistic “don’t waste a crisis” kick in the guts for all Qantas staff, and I hope the TWU expose him for it in the media. I actually thought he was doing well until now.
Umm.. he has already done it... Got rid of all catering staff (all rehired), and created QF Ground Services (all rehired), QF Cabin Crew UK and Jetconnect - if there was anything illegal about all of this, it would have been exposed.
QFcrew is offline  
Old 8th Sep 2020, 03:10
  #65 (permalink)  
Join Date: Jan 2017
Location: MEL
Posts: 114
Shots fired between Qantas and TWU this morning over ground crews. says "Qantas developed a plan 10 years ago to outsource all airport ground handling work by 2020, raising questions about its claim that last month's move to sack all 2400 remaining ground workers was a consequence of the COVID-19 crisis."

The airline said in August that outsourcing Qantas and Jetstar baggage handling, aircraft cleaning and ground crew work to third-party contractors at 11 major Australian airports would save it around $100 million a year as "part of its COVID recovery plan".

But an internal company document from 2010 obtained by The Sydney Morning Herald and The Age shows that Qantas had long considered the move as a way to simplify the business and cut costs.

The "private and confidential" document outlines a "2020 Vision" strategy for the airline which includes "BTW (below the wing) ground handling exited" by this year.

The document outlines that the strategy would deliver a "quantum reduction in staff numbers" at airports and enable Qantas to be "more focused on process rather than people management".

Qantas management canvassed the strategy internally in 2010. While it is unclear whether the company adopted the "2020 Vision" strategy in full, the document shows outsourcing all "below the wing" work has been part of the executive team's thinking since before the bruising 2011 industrial dispute.
TWU's Michael Kaine "seized on the document as "utterly shocking" evidence that Qantas wasn't sacking more because of the pandemic but as part of a "pre-arranged plan".
"This revelation shows the outsourcing of Qantas' entire ground operations is not based on any rational thinking but shows a senior management team out of control and targeting a group of workers," Mr Kaine said."

But a Qantas spokesman said the idea the job cuts were in the works for 10 years was a "conspiracy theory that ignores the reality of what's happened to aviation in the past six months".

The spokesman said "virtually every airline around the world" had outsourced their ground handling work over the past 10 to 20 years, so it should not be surprising Qantas considered it in the past.

"But that’s not why we're considering it now," he said.

"We were hiring into Qantas ground services as recently as February and making long-term investments in new ground handling equipment. We wouldn’t have done that if we had plan
to outsource it."

The airline says COVID-19 travel restrictions will blow a $10 billion hole in revenue this financial year and it has adopted a cost-cutting program that intends to deliver $15 billion in savings by 2023.

"We have to find ways to do things more efficiently and outsourcing our ground handling to specialist providers could reduce the cost of this function by around 40 per cent," Qantas' spokesman said.

MelbourneFlyer is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.