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Australia’s Qantas seals deal to avert industrial strife

  • Market: Corporate, Oil products
  • 19/12/11

Sydney, 19 December (Argus) — Australian airline Qantas said today it has reached a proposed agreement with one of the three unions it was in a dispute with that prompted the grounding of all of its flights back in late October.

An agreement on pay and working conditions had been reached with the Australian Licenced Aircraft Engineers Association, which has about 1,600 aircraft maintenance engineers, Qantas said. The proposal aims to form part of a three-year deal that the two sides will ask industrial relations arbitrator Fair Work Australia to endorse.

Qantas has offered a pay rise of 3pc each year with no guarantee of job security. Qantas shareholders prior to the fleet grounding voted to award its chief executive Alan Joyce a 71pc pay rise to A$5mn ($4.95mn) a year. Qantas has yet to reach an agreement with the two other unions it is in the dispute with, the Transport Workers Union and the Australian and International Pilots Union.

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