Another record profit by Qantas yet more industrial action on the way

Qantas yesterday announced a massive AU$970 million in profits after tax, a 44.1% increase on last year’s profits, despite the current fuel crisis.

Additionally, the national carrier also reported a record breaking AU$1.4 billion in profits before tax for the full financial year to 30th June, 2008, representing a 46% increase in profits.

Revenue reached AU$16.2 billion for the year, an increase of 7.5% on top of last year’s figures on the back of strong demand, which saw 7.6 million passengers carried throughout the year, which represents a lift of 6%.

Yet despite these impressive figures, it appears that Qantas are heading for further industrial disputation with their workers, this time with the National Union of Workers across Australia.  In an ‘information bulletin’ distributed by Qantas yesterday, a pay increase of 3% is on offer. The NUW agreement expired in June 2007 and Qantas is still yet to reach agreement with the union with their ‘take it leave it’ pay offer.  The Qantas bulletin further stated that “should the NUW and its members decide to take industrial action, Qantas would be forced to reconsider its position on backpay.”

It is tantamount to blackmail said a NUW Spokesperson..”here we have an employer who has never genuinely negotiated for the past 14 months now threatening their workers with a donkey and carrot approach on backpay if they don’t accept a lousy 3% at a time when the airline has posted a $1.4 billion dollar profit result.”

It is expected that the union will commence industrial action in support of their claims.

Aviation watchdog orders review of Qantas

Thorough review: Qantas has been involved in three incidents in just over a week. (AAP: Mick Tsikas, file photo)

• Video: CASA announces Qantas investigation (ABC News)
• Related Story: Qantas staff seek safety briefing

The Civil Aviation and Safety Authority (CASA) says it will be carrying out a thorough review of Qantas, following a series of mid-flight dramas.

The latest incident occurred on Saturday, when a Qantas 767 flight to Manila carrying 200 passengers, was forced to turn around after the pilot discovered a hydraulic fluid leak.

A week earlier another Qantas plane bound for Hong Kong was forced to make an emergency landing in Manila after a blast blew a hole in the fuselage.

CASA spokesman Peter Gibson says there is no evidence to suggest there are operational problems, but it is important to make certain.

Mr Gibson says additional checks on top of the normal routine will be carried out over the next two weeks.

“We will be focusing on key areas, such as maintenance, safety systems within the airline and the way Qantas is managing recent incidents,” he said.

“So the Civil Aviation Safety Authority will be digging deep with a special team to make sure that everything is being done properly.”

“This is on top of our normal safety checks that we do on Qantas week in week out… just to make sure that safety standards remain as high as possible.”

Qantas engineers, who are lobbying for a pay rise, also say they are concerned about the recent incidents and argue cost cutting is putting the airline at risk.