2011 Qantas industrial disputes

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2011 Qantas industrial disputes
Qantas Airbus A330-300 arriving at Perth Airport Monty-1.jpg
A Qantas Airbus A330 at Perth Airport (2004)
DateFebruary 2011 (2011-02)–January 2012 (2012-01) [1]
LocationWorldwide

The 2011 Qantas industrial disputes were a series of disputes between the Australian airline Qantas and a number of trade unions during much of 2011 and the start of 2012. The disputes commenced in late 2010, when Qantas and unions commenced bargaining for new enterprise agreements. The bargaining became more heated when the airline announced its intentions to launch a new airline in Asia. During the bargaining, engineers, pilots and baggage handlers carried out a number of protected industrial actions, culminating in the decision by Qantas, on 29 October 2011, to lock out those employees (with the consequence that the entire Qantas mainline fleet would be grounded). [2] After an application by the Federal Minister for Workplace Relations, Fair Work Australia terminated the industrial action with effect from 2 am on 31 October 2011. [3]

Contents

Background

In mid-2011, Qantas and the Transport Workers Union of Australia (TWU) went into industrial bargaining, where TWU employees demanded that the airline guarantee further improvements in working conditions and better wages. [4] In the nine months leading up to October, 200 meetings related to industrial bargaining were held. Industrial action by unions caused disruptions and delays to Qantas' flight schedule which cost the airline A$68 million. [5]

On 10 July 2011, long-haul pilots who were members of the Australian and International Pilots Association (AIPA) voted to take protected industrial action against the airline, for the first time since 1966. The president of AIPA, Barry M. Jackson, said "The issue that pushed us towards taking protected industrial action is a fundamental one – keeping Qantas pilots operating Qantas flights. We now have a management team in charge who believe you can shift operations to Asia, outsource the jobs of Australian Qantas pilots and not do any damage to the Qantas brand in the process." [6]

Announcement of new strategy

On 16 August 2011, Qantas announced plans to launch a new airline in Asia and move away from the North Atlantic which had been the airline's traditional market. [7] The airline said that it would establish Jetstar Japan as a low-cost carrier, along with a premium carrier to be based at either Singapore or Kuala Lumpur. [8] At the same time the airline announced there would be 1,000 job losses. [9] These plans are expected to increase the market share of Qantas by making it more competitive. [10] Australian Council of Trade Unions secretary Jeff Lawrence described the day as the "darkest" in the airline's history. [9]

Grounding and employee lock-out

At a press conference on 29 October 2011, CEO Alan Joyce announced the immediate—and unprecedented [11] —grounding of all Australian domestic and international Qantas flights, effective 5pm AEDT, as a result of the proposed lock-out of the airline's staff, beginning at 8 pm AEDT on 31 October, in response to continued industrial action against the company. [2] Joyce said that Qantas subsidiaries Jetstar Airways, QantasLink and Jetconnect would not be affected by the grounding, along with Express Freighters Australia and Atlas Air freight aircraft (operating on behalf of Qantas Freight and Australian airExpress). [12] [13]

Qantas said it would reimburse accommodation costs for those left stranded by the fleet grounding, and refund those who were expected to fly with the airline. [14]

Impact and response

Following the abrupt announcement of the suspension of operations, all Qantas aircraft already on the ground, regardless of whether they were in maintenance or serviceable, were grounded, and all passengers who had boarded aircraft were instructed to disembark and collect their baggage. Multiple reports suggested that some aircraft turned around during taxiing for take-off. [15] [16] Flights that were in the air at the time of the announcement continued to their next destinations and were then grounded. The lock-out was expected to affect 68,000 to 80,000 passengers in the first day, [17] [18] [19] to result in the cancellation of 600 flights and to cost the airline in excess of $20 million each day. [19] Bookings of 17 heads of state attending the Commonwealth Heads of Government Meeting in Perth were also affected. [20]

The grounding was expected to cause disastrous consequences to the Australian economy. [5] [21] Australian Senator Nick Xenophon criticised the action as "militant management". [22] TWU secretary Tony Sheldon labelled the move by Qantas as "a pre-conceived, pre-planned attempt to hoodwink the shareholders, hoodwink the Australian community. Now it's trying to hoodwink the company's workforce". [23] Tony Abbott, then Leader of the Opposition, blamed the disputes on the government decision not to intervene, and said that the grounding was avoidable. [24] [25]

Then Prime Minister, Julia Gillard, requested an urgent meeting at a Fair Work Australia tribunal: "As a result of the dramatic escalation of that dispute the government has taken a rare decision to make an application to Fair Work Australia to have the industrial action terminated and have Fair Work Australia deal with this dispute". A hearing was held in Melbourne at 10 pm on 29 October. [26] Richard Woodward, vice-president of the AIPA, said, "Alan Joyce is holding a knife to the nation's throat". [27]

Despite the barrage of criticism, one newspaper published claims that the grounding was backed by the flight attendants' union. [28]

Qantas' rival airlines responded positively to the fleet grounding. Virgin Australia offered stranded passengers a discount on flight fares. Virgin also announced that it would provide an additional 43,000 seats in the coming weeks to accommodate Qantas passengers. [29] Air New Zealand were sluggish, but after several requests agreed to cover Virgin and Qantas' trans-Tasman flights, to free up New Zealand based aircraft and crews for Virgin to use in the Australian domestic market. [12] AirAsia X offered discounted fares for passengers holding a valid Qantas ticket to any AirAsia X destination. [29]

According to Qantas, the industrial action by the three labour unions cost the airline A$194 million (US$195 million). [30]

Fair Work Australia orders

In the early hours of 31 October, a full bench of Fair Work Australia handed down orders that all industrial action taken by Qantas and the involved trade unions be terminated immediately. [31] [32] The order was requested by the federal government amid fears that an extended period of grounding would do significant damage to the national economy, especially with regards to the tourism and mining sectors. [33] The government elected not to use its powers under Section 431 of the Fair Work Act 2009, which enabled a minister to unilaterally make a declaration to terminate industrial action. [34] On 8 August 2012, Fair Work Australia rejected key union pay and contract-worker restriction demands. The unions had flagged the possibility of more disruptions. [35]

Related Research Articles

Qantas Airways Limited is the flag carrier of Australia. It is the largest airline by fleet size, international flights, and international destinations in Australia and Oceania. Qantas is the world's third-oldest airline by foundation date and the oldest airline in the English-speaking world — being founded in November 1920. Qantas is a founding member of the Oneworld airline alliance.

Air New Zealand Limited is the flag carrier of New Zealand. Based in Auckland, the airline operates scheduled passenger flights to 20 domestic and 30 international destinations in 18 countries, primarily within the Pacific Rim. The airline has been a member of the Star Alliance since 1999.

<span class="mw-page-title-main">Air Vanuatu</span> Flag carrier of Vanuatu

Air Vanuatu is an airline with its head office in Air Vanuatu House, Port Vila, Vanuatu. It is Vanuatu's national flag carrier, operating to Australia, New Zealand, New Caledonia and points in the South Pacific. Its main base is Bauerfield International Airport, Port Vila. In May 2024 the airline was placed into voluntary administration by the Government of Vanuatu.

<span class="mw-page-title-main">Melbourne Airport</span> International airport serving Melbourne, Victoria, Australia

Melbourne Airport, known locally as Tullamarine Airport, is the main international airport serving the city of Melbourne, the capital of the Australian state of Victoria. It is the second busiest airport in Australia. The airport operates 24/7 and has on-site parking, world-class shopping and dining. The airport opened in 1970 and replaced Essendon Airport. Melbourne Airport is the main international airport of the four airports serving the Melbourne metropolitan area, the other international airport being Avalon Airport.

Virgin Australia, the trading name of Virgin Australia Airlines Pty Ltd, is an airline based in Brisbane, Australia. It is one of two active airlines to use the Virgin brand, as well as the larger by fleet size. It commenced services on 31 August 2000 as Virgin Blue, with two aircraft on a single route. It suddenly found itself as a major airline in Australia's domestic market after the collapse of Ansett Australia in September 2001. The airline has since grown to directly serve 32 cities in Australia, from hubs in Brisbane, Melbourne and Sydney.

Jetstar Airways Pty Ltd, operating as Jetstar, is an Australian low-cost airline headquartered in Melbourne, Victoria. It is a wholly owned subsidiary of Qantas, created in response to the threat posed by the airline Virgin Blue. Jetstar is part of Qantas' two brand strategy of having Qantas Airways for the premium full-service market and Jetstar for the low-cost market. As of June 2015, Jetstar was carrying 8.5% of all passengers travelling in and out of Australia.

<span class="mw-page-title-main">Australian labour law</span> Rights and duties of workers, unions and employers in Australia

Australian labour law sets the rights of working people, the role of trade unions, and democracy at work, and the duties of employers, across the Commonwealth and in states. Under the Fair Work Act 2009, the Fair Work Commission creates a national minimum wage and oversees National Employment Standards for fair hours, holidays, parental leave and job security. The FWC also creates modern awards that apply to most sectors of work, numbering 150 in 2024, with minimum pay scales, and better rights for overtime, holidays, paid leave, and superannuation for a pension in retirement. Beyond this floor of rights, trade unions and employers often create enterprise bargaining agreements for better wages and conditions in their workplaces. In 2024, collective agreements covered 15% of employees, while 22% of employees were classified as "casual", meaning that they lose many protections other workers have. Australia's laws on the right to take collective action are among the most restrictive in the developed world, and Australia does not have a general law protecting workers' rights to vote and elect worker directors on corporation boards as do most other wealthy OECD countries.

<span class="mw-page-title-main">Canberra Airport</span> Airport in Canberra, Australia

Canberra Airport is an international airport situated in the district of Majura, Australian Capital Territory. It serves Australia's capital city, Canberra, as well as the nearby city of Queanbeyan and regional areas of the Australian Capital Territory and southeastern New South Wales. Located approximately 8 km (5.0 mi) from the city centre, within the North Canberra district, it is the ninth-busiest airport in Australia.

Jetstar Asia Airways Pte Ltd is a Singaporean low-cost airline headquartered at Changi Airport. It operates services to regional destinations in Southeast Asia to countries such as Myanmar, Cambodia, Malaysia, Indonesia, Philippines, Thailand and Vietnam. It also flies to regional routes in East Asia such as Japan, Taiwan and Hong Kong.

<span class="mw-page-title-main">Kangaroo Route</span> Flights between Britain and Australia over the Eastern Hemisphere

The Kangaroo Route is a term coined by Qantas, referring to the commercial passenger air routes flown between Australia and the United Kingdom via the Eastern Hemisphere.

<span class="mw-page-title-main">Darwin International Airport</span> International airport serving Darwin, Australia

Darwin International Airport is a domestic and international airport, and the only airport serving Darwin, Australia. It is the eleventh busiest airport in Australia measured by passenger movements.

<span class="mw-page-title-main">Brindabella Airlines</span> Australian regional airline established in 1994

Brindabella Airlines was an Australian regional airline established in 1994. Its headquarters were at Canberra Airport. On 15 December 2013 the airline was placed in receivership.

Jetconnect Ltd. is a wholly owned subsidiary of Qantas with its head office located in Auckland, New Zealand. Originally established in July 2002 as a New Zealand–based airline, the company stopped operating as an airline in 2018 but continues to employ pilots and cabin crew based at Auckland and Wellington airports. Crew employed by Jetconnect operate Qantas flights on trans-tasman services between Australia and New Zealand, with cabin crew also operating on Qantas long-haul flights alongside Australian-based crew.

The Australian Federation of Air Pilots (AFAP) is a professional association and industrial organisation for commercial pilots in Australia.

<span class="mw-page-title-main">Tigerair Australia</span> Defunct low-cost airline of Australia (2007–2020)

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<span class="mw-page-title-main">Alan Joyce (businessman)</span> Irish-Australian businessman and Qantas CEO

Alan Joseph Joyce is an Irish-Australian businessman. He was the chief executive officer (CEO) of Qantas Airways Limited from 2008 until his resignation in 2023. Joyce retired as CEO on 5 September 2023, with Vanessa Hudson succeeding him the following day.

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<span class="mw-page-title-main">Qantas Flights 7 and 8</span>

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Vanessa Hudson is an Australian business executive and CEO of Qantas since 2023, having first joined the company in 1994. Since joining the airline, Hudson has been in a variety of senior positions, culminating in 2023 when she was announced as the company's next CEO to succeed Alan Joyce in November 2023. Hudson was set to become the first female CEO of Qantas. On 5 September 2023, it was announced Joyce would quit early following revelations the company may have continued to sell tickets for flights that had already been cancelled, with Hudson taking over the following day.

References

  1. ↑ Papadakis, Marianna (24 January 2012). "Qantas industrial dispute ends". St George & Sutherland Shire Leader. Archived from the original on 13 April 2012. Retrieved 29 January 2012.
  2. 1 2 "Qantas grounds all flights". The Sydney Morning Herald. 29 October 2011. Archived from the original on 30 October 2011. Retrieved 29 October 2011.
  3. ↑ "Fair Work Australia order to get Qantas back in air". The Daily Telegraph . 31 October 2011. Retrieved 31 October 2011.
  4. ↑ "Qantas warned of mid-year strikes". Herald Sun. 29 March 2011. Retrieved 5 November 2011.
  5. 1 2 "Alan Joyce 'Termination of Qantas strikes only option'". The Sunday Telegraph. 30 October 2011. Retrieved 30 October 2011.
  6. ↑ "Qantas pilots strike for long-haul jobs". Perth Now. 11 July 2011. Archived from the original on 10 September 2011. Retrieved 29 October 2011.
  7. ↑ Lynam, Joe (29 October 2011). "Qantas boss's risky strategy to refocus airline on Asia". BBC News. Archived from the original on 29 October 2011. Retrieved 30 October 2011.
  8. ↑ "Qantas flies into Asia's century". The Sydney Morning Herald. 18 August 2011. Retrieved 30 October 2011.
  9. 1 2 "'Darkest day' as Qantas plans Asian move". ABC News. 16 August 2011. Archived from the original on 20 August 2011. Retrieved 30 October 2011.
  10. ↑ Creedy, Steve (17 August 2011). "Qantas turns to Asia for growth". The Australian. Retrieved 30 October 2011.
  11. ↑ "Joyce defends Qantas grounding as backlash grows". ABC News. 30 October 2011. Retrieved 30 October 2011.
  12. 1 2 "Live: FWA orders Qantas dispute terminated". The Sydney Morning Herald. 31 October 2011. Retrieved 31 October 2011.
  13. ↑ Govindasamy, Siva (29 October 2011). "Qantas suspends operations after locking out striking employees". Flight International . Archived from the original on 31 October 2011. Retrieved 30 October 2011.
  14. ↑ Drew, Kevin (29 October 2011). "Qantas grounds worldwide fleet over dispute". The New York Times. Retrieved 30 October 2011.
  15. ↑ "Qantas Grounds Entire Fleet in Labor Dispute". Newser. 29 October 2011. Archived from the original on 30 October 2011. Retrieved 30 October 2011.
  16. ↑ "Qantas passengers stranded worldwide". ABC News. 29 October 2011. Archived from the original on 1 November 2011. Retrieved 30 October 2011.
  17. ↑ "Irate passengers vow to abandon Qantas". ABC News. 30 October 2011. Archived from the original on 30 October 2011. Retrieved 30 October 2011.
  18. ↑ "Airline that stops a nation". The Sydney Morning Herald. 29 October 2011. Archived from the original on 30 October 2011. Retrieved 30 October 2011.
  19. 1 2 "Qantas responds to industrial action" (PDF). Qantas. 29 October 2011. Archived from the original (PDF) on 3 April 2012. Retrieved 30 October 2011.
  20. ↑ "Qantas grounded". The Age. 30 October 2011. Retrieved 30 October 2011.
  21. ↑ "COMMENT: Qantas grounding – who will blink first?". Australian Aviation. 29 October 2011. Retrieved 30 October 2011.
  22. ↑ "Qantas has militant management: Xenophon". The Sydney Morning Herald. 30 October 2011. Retrieved 30 October 2011.
  23. ↑ "Unions blast 'reckless' Qantas grounding". ABC News. 29 October 2011. Retrieved 30 October 2011.
  24. ↑ "Government to blame for Qantas grounding, Tony Abbott says". The Australian. Australian Associated Press. 30 October 2011. Retrieved 30 October 2011.
  25. ↑ "Liberal leader Tony Abbott says Qantas move was 'avoidable'". Herald Sun. Australian Associated Press. 29 October 2011. Retrieved 30 October 2011.
  26. ↑ "Qantas hearing adjourned till 2 pm Sunday". Herald Sun. 30 October 2011. Retrieved 30 October 2011.
  27. ↑ Feast, Lincoln (29 October 2011). "Stranded Qantas passengers await labor ruling". Reuters. Retrieved 30 October 2011.
  28. ↑ Ironside, Robyn (30 October 2011). "Flight attendants' union backs Qantas CEO Alan Joyce in a standoff with other unions". The Courier-Mail. Retrieved 30 October 2011.
  29. 1 2 "Virgin, AirAsia offer special fares to Qantas passengers". Herald Sun. 29 October 2011. Retrieved 30 October 2011.
  30. ↑ "Qantas Says Industrial Dispute Cuts 1H Profit". Air Transport World . 1 January 2012. Archived from the original on 24 September 2015. Retrieved 8 May 2015.
  31. ↑ "[2011] FWAFB 7444". Fwa.gov.au. 20 September 2011. Retrieved 31 October 2011.
  32. ↑ "PR516214". Fwa.gov.au. Archived from the original on 31 July 2012. Retrieved 31 October 2011.
  33. ↑ "Qantas to fly after dispute terminated". ABC News. 30 October 2011. Retrieved 31 October 2011.
  34. ↑ "Gillard welcomes Fair Work decision". Australian Broadcasting Corporation . Retrieved 30 October 2011.
  35. ↑ Jones, Tony (8 August 2012). "FWA rejects union's Qantas worker demands". Lateline.
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