Qantas CEO Alan Joyce has been accused of mismanaging the airline as a slow-moving wage dispute with the aircraft engineers union and a possible imminent strike threatens to add to current problems of the airline.
The reopening of borders and the easing of COVID-19 restrictions have led to a boom in air travel in recent months. But Qantas has been hit by a wave of customer anger due to flight delays and cancellations, lost luggage and long waiting times for customer service calls. Now the company is also facing new tensions with unions representing thousands of workers.
Licensed engineers from Qantas, Jetstar and Network Aviation will vote to leave the door open to strike action against airlines. Credit: James Brickwood
The Association of Authorized Aircraft Engineers of Australia (ALAEA), which represents some 1,650 licensed engineers from the Qantas, Jetstar and Network Aviation brands, is threatening industrial action if Qantas does not meet its demands. of a wage increase in excess of 12 percent inflation.
The head of the union, Steve Purvinas, told the Herald and The Age that strike action will only be taken as a last resort, and said the union will seek to minimize the impact on the traveling public.
“The airline is a disaster right now due to mismanagement,” he said. “We don’t want to create an excuse or reason for Mr. Joyce to blame us for his own mistakes.”
A Qantas spokesman said the company had been negotiating in “good faith” and said ALAEA’s union action was “completely unnecessary”.
“We have contingency plans to minimize any disruption,” the spokesman said. “[The 12 per cent pay rise is] something we just can’t afford and it’s well above the salary increases of other group employees. “
Qantas last month announced capacity cuts, the number of flights it makes available, in an attempt to mitigate higher fuel costs. Morgan Stanley analysts have lowered their outlook on Qantas earnings and share prices this week due to rising fuel costs, but said “the company’s recovery is underway and the balance sheet is being repaired faster than expected “.
Joyce, who left planes on the ground in 2011 during a labor dispute, has taken a notoriously harsh approach to negotiations with unions over wages and conditions.