Redundancy call as Qantas loses contract with Air NZ
The airline's management will meet the Australian Services Union, which represents customer service staff at Qantas, on Friday to discuss the number of jobs likely to be lost.
Both sides said there would not be compulsory redundancies.
Qantas's long-standing contract to provide ground-handling services for Air New Zealand at airports including Sydney, Melbourne, Brisbane, Adelaide and Perth will end in March. The contract is one of Qantas's largest, and includes checking in of passengers and baggage handling.
The union's assistant national secretary, Linda White, said Qantas staff at Sydney Airport's international terminal were most likely to be affected by the loss of the deal with Air New Zealand. At other Australian airports, Qantas was likely to able to redeploy staff to other roles, she said.
"They did call for expressions of interest among the check-in and customer service staff but the exact number is still very fluid. We should know at the end of the week," she said.
"The place that was affected the most was Sydney because it has the most flights [by Air New Zealand]."
Air New Zealand made a decision in November to contract Toll Dnata to do the work. Airlines are increasingly turning to third-party operators such as Menzies Aviation for ground-handling services.
A Qantas spokesman said the airline was looking at what impact the loss of the ground-handling contract would have on its employees but it did not expect it to result in compulsory redundancies.
Qantas was once dominant in ground-handling services but thin margins have made it difficult to compete against third-party operators. In 2009, Cathay Pacific ditched Qantas in favour of Menzies for ground-handling services at the Australian airports it uses.
Last year, Qantas announced it would be axing about 1260 roles from its Australian engineering and maintenance operations.
Frequently Asked Questions about this Article…
Qantas lost a multimillion-dollar ground-handling contract with Air New Zealand, which provided check-in and baggage handling at several Australian airports. The contract ends in March and Qantas has called for voluntary redundancies among check-in and other ground staff at Sydney Airport's international terminal as a result.
Customer service, check-in and other ground-handling staff—particularly at Sydney Airport's international terminal—are most likely to be affected. The Australian Services Union said Sydney is the most impacted location because it has the most Air New Zealand flights.
Both Qantas management and the Australian Services Union have said there will not be compulsory redundancies. Qantas has invited expressions of interest for voluntary redundancies and will meet the union to discuss the number of jobs likely to be lost.
The long-standing contract ends in March. It is one of Qantas's largest contracts and includes ground-handling services such as passenger check-in and baggage handling at airports including Sydney, Melbourne, Brisbane, Adelaide and Perth.
Air New Zealand decided in November to contract Toll Dnata to provide the ground-handling services. The article also notes a broader airline industry trend of using third-party operators such as Menzies Aviation.
The article notes airlines are increasingly turning to third-party ground-handling operators (for example, Menzies Aviation). It also mentions Qantas was once dominant in ground-handling but thin margins have made it harder to compete with specialist third-party providers.
Yes. The article references that in 2009 Cathay Pacific switched from Qantas to Menzies for ground-handling services at Australian airports. It also notes Qantas has faced recent job cuts in other areas—about 1,260 roles were axed from its Australian engineering and maintenance operations last year.
Key items to watch are Qantas’s discussions with the Australian Services Union about job numbers, announcements on voluntary redundancy outcomes or staff redeployments, and any company statements about the operational or financial impact of losing one of its largest ground-handling contracts. The company has said it does not expect compulsory redundancies.
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