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Unions want answers from Qantas

Qantas boss Alan Joyce and his senior executives will come under pressure from union leaders to spell out the extent of government help they are seeking and the parts of the business to be hit hardest by job cuts.
By · 18 Dec 2013
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18 Dec 2013
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Qantas boss Alan Joyce and his senior executives will come under pressure from union leaders to spell out the extent of government help they are seeking and the parts of the business to be hit hardest by job cuts.

Management will meet unions representing the bulk of the airline's 33,000-strong workforce on Wednesday at its Sydney headquarters.

The talks come amid growing speculation about whether the federal government will grant financial help to Qantas. Prime Minister Tony Abbott has backed lifting foreign-ownership restrictions but faces concerns from within the Coalition that a debt guarantee or so-called letter of comfort will set a dangerous precedent.

The focus of union leaders at the meeting will be to extract details about the areas most affected by the company's decision to axe at least 1000 jobs over the next year.

ACTU secretary Dave Oliver said it wanted to ensure "every reasonable option is explored to reduce any job losses". "What we won't accept is any attempt to undermine decent, well-paid, secure local jobs, and that includes moving jobs offshore," he said.

Mr Oliver has previously called on the government to ensure a "level playing field" for Qantas. But the ACTU is opposed to a relaxation of the Qantas Sale Act, which forces the airline to maintain the bulk of its operations in Australia.

Australian Services Union assistant secretary Linda White said workers wanted more detail about the job cuts and the airline's longer-term intentions.

Qantas revealed plans this month to axe at least 1000 jobs and strip out an extra $2 billion in costs over the next three years. But it is yet to say which parts of the business will bear the brunt of the cuts.

The Transport Workers Union is calling on the government to consider measures such as tax changes to help create a "fairer playing field", instead of removing the Qantas Sale Act. The changes suggested include the ability for airlines to write off assets more quickly, thereby reducing tax burdens.
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Frequently Asked Questions about this Article…

Unions are worried about Qantas job cuts because they want to ensure that every reasonable option is explored to minimize job losses. They are particularly concerned about maintaining decent, well-paid, secure local jobs and are opposed to moving jobs offshore.

The government is being urged to provide financial help to Qantas, but there is debate about how this should be done. While Prime Minister Tony Abbott supports lifting foreign-ownership restrictions, there are concerns about setting a dangerous precedent with a debt guarantee or letter of comfort.

Unions are asking Qantas management to provide details about which parts of the business will be most affected by job cuts and to clarify their longer-term intentions. They want to ensure that job losses are minimized and that local jobs are protected.

Qantas has announced plans to cut at least 1,000 jobs over the next year as part of a broader strategy to reduce costs by $2 billion over the next three years.

The Qantas Sale Act requires the airline to maintain the bulk of its operations in Australia. Unions and some government officials are opposed to relaxing this act, as they believe it is crucial for protecting local jobs and ensuring a level playing field.

The Transport Workers Union suggests measures like tax changes to create a fairer playing field. This includes allowing airlines to write off assets more quickly, which would reduce their tax burdens.

The Australian Services Union is seeking more details about the job cuts and the airline's longer-term plans. They want to ensure that workers are informed and that job security is prioritized.

The federal government is considering various options to support Qantas, including lifting foreign-ownership restrictions. However, there is internal debate about providing a debt guarantee or letter of comfort due to concerns about setting a precedent.