Guess Who?

July 23, 2008


ACTU on Qantas Job Cuts

July 19, 2008

Date: 18 July 2008

The decision by Qantas to shed 1500 jobs in Australia and overseas is disappointing and unions will seek to work with the airline to minimise compulsory redundancies for the workforce.

“We are concerned at any job losses, and will be looking closely at the detail of what is proposed by Qantas,”Jeff Lawrence, ACTU Secretary, said.

“Qantas has said there will be some compulsory redundancies, and unions will be ensuring they are consulted closely to minimise their impact.

“Qantas workers should also be consulted about the impact of other changes announced today on work loads and job practices.”

The ACTU welcomed an in-principle agreement between Qantas engineers and the company’s management from enterprise bargaining negotiations.

While details of the engineers’ agreement are confidential at this stage, if accepted by the members it will deliver higher pay for the airline’s 1500 licensed engineers.

The proposed agreement will be considered by the engineers over the next few weeks.

For further information

Contact: Mark Phillips
Union: ACTU
Phone: (03) 8676 7266
Contact Mobile: 0422 009 011
WWW: http://www.actu.asn.au/

Qantas Campaign Forum Now Available

July 13, 2008

The Qantas Campaign Forum is all about connecting Qantas Workers all over Australia. One of the ways we do this is through an online forum. It’s a place where we can meet online and stay in touch with other workers at Qantas and discuss our campaign, workplace issues and general topics affecting us at Qantas.

There are two steps to register:

1. Click here and enter your details. For your “username” you MUST enter your first AND last name in the format eg “Joe Smith”.

2. Email us at qantascampaign@gmail.com to let us know where you work at Qantas and that you have requested registration. You must email us from the same email address that you entered into the registration form.

This is to guard against someone else registering with your email address. We’ll then approve your registration. This is to prevent unauthorised access.

Please note the following:

  1. Your username must be your full name in the format “Joe Smith”.
  2. Never disclose your password to anyone else.
  3. Do not reproduce anything you read on the forum elsewhere.

Other posts already up there should give you a good idea of the sort of topics discussed.

If you have already registered just login here


Ex-Qantas boss fails in ATO battle

July 5, 2008

Published in the Australian Business

Susannah Moran | July 05, 2008

TREVOR Kennedy has lost a court bid to force the tax office to reveal how it came into possession of letters with his Swiss lawyer and transcripts of an examination the businessman attended in Switzerland.

The former Qantas director is fighting the ATO in the Administrative Appeals Tribunal in relation to seven years’ worth of amended tax assessments.

The tax office has hit Mr Kennedy with a $6.9million bill, which includes penalties, for allegedly underdeclaring his income.

It relied on various documents, including a transcript of examination of Mr Kennedy in Switzerland, and letters to his Swiss lawyer, Benno Hafner, in amending his assessments. As part of the case, Mr Kennedy appealed a preliminary ruling made in the AAT but yesterday three Federal Court judges ruled against him.

The tax bill issued to Mr Kennedy in 2006 relates to claims that he, deceased stockbroker Rene Rivkin and former Labor powerbroker Graham Richardson were the owners of a secret parcel of shares in the Offset Alpine Printing Group. Following a mysterious fire in 1993, the shares surged in value.

Mr Richardson is fighting the tax office in the Federal Court and denies having owned the shares.

Mr Kennedy claims the ATO is pursuing him in bad faith, is seeking to collect tax twice and has assessed various years of income “on two different bases, knowing they both could not be correct”.

Yesterday the full bench said Mr Kennedy’s application to obtain additional documents that “go to the provenance or authenticity” of documents already provided was premature.

Mr Kennedy’s lawyers argued that he would suffer procedural unfairness if the tax office did not provide the extra documents. The judges rejected this argument.


Workers here for the long haul

June 29, 2008

We are at a crucial stage of the unions’ campaign for justice and fairness at Qantas. The Engineers dispute has no doubt paved the way to ensure that we must all stand up and be counted as Qantas has given no one any confidence that they can stick to a deal even if one is struck in this or any other agreement.

Whether it’s a free-falling share price, a failed sale, the largest corporate price fixing cartel that the Sydney Morning Hearld described as a “global debacle that has snowballed into the world’s largest and most far reaching anti-cartel investigation.

Yet here we still have the Qantas CEO defending his position and Qantas’s record to all who are prepared to listen but makes no mention of the current investigations and the fines dished out by the illegal price fixing that Qantas has engaged in. He might not but we should be making sure Journalists start asking the pertinent questions regarding Qantas’s and Dixon’s performance.

Let’s also clear up a few myths that are being continually perpetuated by Qantas management. If you have listened to news and interviews over the past month, it would be fair to say that Qantas management are trying pretty hard to believe, and get others to believe, their own rhetoric. Let’s just zero in on the facts. Geoff Dixon can say what he likes but many of his own Staff have given up on him as we speak. How long can the Shareholders he often refers to, continue supporting him? We can only wonder when we have a closer look at the following series of events of this once great Australian Airline.  The real spirit of Qantas is at an all-time low and free falling quicker than Qantas’s current share price.

Firstly, how does a CEO survive an illegal price fixing cartel that has been in operation during all the time that he has been at the helm? If he was not aware of it, why wasn’t he aware of it? That would usually be enough for any CEO in charge of 35,000 employees to be shown the door but not this CEO.  So far we have $A70 million in fines, an undisclosed fine by the ACCC, an impending class action estimated to be in the vicinity of $200-$300 million, a former Qantas executive in jail and more Qantas Executives under investigation.

We have had a failed sale, a share price that has dropped 52% and still in free-fall, a serious industrial dispute that threatens the very nature of the business – aviation and no doubt many more disputes are quickly about to enter the identical ‘flight path’ as they taxi onto the negotiation and dispute runway.

One could draw the conclusion given the obvious failure to easily negotiate a fair outcome for these group of workers that maybe DIxon’s final legacy is about deliberately manufacturing and prolonging this dispute as an excuse to move more jobs offshore. If you talk to some people in the industry, they will tell you that this is exactly the reason Qantas Wage position continues to remain at 3% irrespective of the financial position of Qantas. Qantas constantly take advantage of any impending or actual airline crisis. Let’s analyse some of the more common statements Qantas rely upon in its public defense of their position.

Qantas has Increased thousands of Jobs

This one is a beauty as many or most of the new jobs created are temporary in description through outsourcing with workers now doing Qantas mainstream work even though they are not and have never been employed directly by Qantas and are also on inferior conditions of employment. What areas of Qantas has not been touched by outsourced labour which has directly undermined the job security for every Qantas worker and their families? As is the case just last week, Dixon quoted Avalon as not being part of this current dispute and again these workers are employed doing the same work as the current engineers on Qantas Aircraft but are employed by “Forstaff” and not by Qantas. They may have increased jobs but not ones that afford the same set of working conditions to workers doing identical work. How can you boast about increasing jobs when the airline doesn’t or is unwilling to directly employ these working Australians?

Job Security

How can there be any level of job security when Qantas is hellbent on outsourcing and selling off the airline? One only has to look at the ‘job security’ clause in any union agreement to determine where Qantas are heading or in many cases, have already landed as far as job security goes. There is no job security at Qantas and many would argue that there hasn’t been any for at least the last six years.

Wage Policy

Qantas wage policy did not just come around this time due to increased fuel costs. They have been trotting out this “wage policy” of 3% whether it be in good times, bad times or at any other time. The facts are that Qantas have no interest in genuinely negotiating and bargaining a fair deal in any set of negotiations with their workforce. That is why Dixon calls it “wage policy”. How can you have ‘predetermined’ wage policy when you are negotiating a new set of terms and conditions of employment. When DIxon negotiates his own deal, apparently Qantas’s wage policy is no longer “wage policy”. If it were, he would be getting 3% instead of 48% on total remuneration over the past two years. Let’s put it into some perspective, Dixon earns an average of $130,000 per week which equates to 185 Qantas workers who are on about $700 per week.

Have a look at all the enterprise agreements registered during Dixon’s reign and see what the wage clauses hold. Qantas has been bludgeoning workers into a position of fear over their job security due to events such as SARS and 911 with flexibility, wage freezes, wage restraints and yet we are no closer to any fair wage increases and job security today. They use the ‘volotile’ airline industry as ransom over their workers even when Qantas’s financials has never been stronger. This is evident in the CEO’s own pay packet that gives him a nice little earner of nearly $7 million per annum and a 48% increase over the past two years and now through the ‘goodness of his heart’ has established a “wage freeze” for executives apparently due to the increased “fuel costs.” If workers were earning 48% wage increases we are sure they also would have no problems offering up a wage freeze. They have however already accepted wage freezes during a previous airline crisis. It is just sheer and blatant hypocrisy however for Qantas Executives that have arguably not even performed to warrant these obscene increases to their own remuneration. How can the average Mum’s and Dad’s who fly Qantas accept these unreal world standards when they are struggling to keep a roof over their heads, feed and clothe their children?

The Battle Lines

This will most likely be the most important industrial dispute workers will be involved in (irrespective of what areas of Qantas and what union you are in) since the waterfront battle in the late 90’s. There is only one option in this round for all unions…we must fight and be united in achieving a fair outcome for all Qantas workers and our families. We are not just fighting for wage increases, we are fighting for our very survival and there is no better time than now to do it. The alternative is to simply sit and wait in the ‘departure lounge’ to the unemployment scrapheap. We will not remain at Qantas by accepting wage restraints and more ‘flexibility’ by allowing Qantas to threaten us again. We will remain at Qantas by forcing management to adopt changed standards of integrity, fairness, transparency and to finally recognise it has been the very workers they continue to attack, who have put them in the place where they are today…one of the most most profitable and the safest airline in the world.

This point should not be lost on the Rudd Government should they get pressured to intervene. If they do, it will surely be a test of his leadership in supporting Australian workers and their families who put him where he and his Labor Colleagues are today – in Government for the people of Australia.

Qantas has laid this dispute firmly at our collective feet and we must end up standing firm on both of them.


Qantas shares at two-year low, below $3

June 24, 2008
Chart: ASX Website
Tuesday June 24, 2008, 12:17 pm

Qantas shares fell to their lowest price in two years as the carrier was forced to cancel more flights on Tuesday due to short-term walkouts by engineers seeking a wage increase.

At 1113 AEST Tuesday, Qantas shares were down six cents, or 1.98 per cent, to $2.97, having dropped as low as $2.95 in the morning’s trading.

The last time Qantas shares fell below $3.00 was in August 2006 when the airline’s shares traded at a low of $2.94.

ABN Amro Morgans private client adviser Bill Bishop said Qantas shares had been hit due to a number of factors.

“It’s a combination of things,” Mr Bishop said.

“They are having the traditional battle with unions, which has manifested itself with this engineers strike.

“The engineering staff are using their muscle to withdraw services and the company is saying it’s not going to budge – but they’ll meet in the middle somehow.”

Mr Bishop said the negative market sentiment toward Qantas was broader than the engineers’ wages dispute.

“I think because one or two of the American airlines have gone broke or are poised to go broke it’s affected the market sentiment towards airline profitability … which is a bit silly,” he said.

Qantas is one of the most profitable, if not the most profitable airline in the world.”

“But like all airlines they’re flying planes that are a bit old and a bit thirsty.”

Making life tougher for airlines, US crude oil futures finished up $US1.38 at $US136.74 per barrel on Monday.

The rise was due to several factors including fears that an oil workers’ strike in Nigeria could widen, following recent attacks on oil facilities there.

Qantas shares have lost about 50 per cent of their value over the past year in response to higher fuel prices.

That fall is much steeper than a 16 per cent drop for the overall share market.

Mr Bishop said there is a feeling of disquiet about all airlines when looking at it from an investors’ point of view.

“The market looks and says – very high fuel cost, the carrier is having to reduce the number of old planes, it’s having to reduce the number of flights on certain routes and some routes have been taken out altogether and they’re increasing the fuel surcharge – but all airlines are doing the same thing.”

Shares in Australia’s second largest airline, Virgin Blue, and country airline Regional Express (REX) also fell on Tuesday.

At 1157 AEST Virgin Blue was down one cent, or 1.82 per cent, to 54 cents, while REX was off one cent, or 0.94 per cent, to $1.05.


Qantas chief target of YouTube campaign

June 24, 2008

Geoff Dixon
Photo: Michele Mossop

Published in the Sydney Morning Herald, smh.com.au June 24, 2008 – 12:15PM

Jonathan Dart

Amid strikes and cancelled flights, Qantas chief executive Geoff Dixon is the target of a campaign on YouTube.

The video features a person dressed in Qantas hat and uniform, with his voice digitally altered and wearing a mask of Mr Dixon.

“This will be the first of a many part series that is going to be the FOD program – the F— Off Dixon program,” the actor says.

“As you can see I’m wearing the appropriate apparel on my head and no doubt there are shirts out there with the FOD symbol on it.

” If you see any one of the employees wearing hats like this or shirts, just remember – FOD program.”

It comes as engineers walked off the job for the second day causing 18 flights to be cancelled, after wage negotiations between Qantas and the Australian Licensed Aircraft Engineers Association fell apart.

The union is asking for an annual wage increase of five per cent, while the company is asking for three per cent.

“The unions are trying to bully me into a place where I don’t want to be, with a five per cent increase of their wages,” the actor says in the video.

“I think it’s suitable they only get three per cent and I think three per cent is quite sufficient even though I did take a 21 per cent increase in my wages from 2006 and 2007, but don’t worry about me.”


Qantas’ response to strike action

June 23, 2008


Qantas cancels flights in three states

June 23, 2008

Airline strikes will hit Qantas services from Sydney, Melbourne and Brisbane from today.Airline strikes will hit Qantas services from Sydney, Melbourne and Brisbane from today. Photo: Jim Rice

Six Qantas flights from Sydney and Melbourne have been cancelled today as engineers prepare to walk off the job in three states.

The airline has been forced to cancel another 18 flights on Tuesday, including services for Perth, as engineers step up industrial action that threatens to continue for weeks.

Tuesday’s cancelled flights affect Sydney, Melbourne and Brisbane airports.

Engineers will walk off the job for up to four hours at Sydney, Melbourne, Brisbane and Cairns airports on Monday and Tuesday over a pay dispute.

Qantas has refused to budge from its offer of a three per cent pay rise.

The Australian Licensed Aircraft Engineers Association (ALAEA) is demanding a five per cent increase for engineers.

A Qantas spokeswoman said passengers on cancelled flights had been booked on other flights.

“All passengers have been rebooked on other services within an hour of their original flight,” the spokeswoman told AAP. “There will be minimal disruption to passengers and Qantas has been contacting passengers over the weekend and will continue to do so.”

Qantas has taken a hard line over the engineers’ action, saying it will do whatever it can to protect its customers.

“There’s a range of contingencies, some of which include consolidating our operations and some of which involve alternative ways of getting the work done,” Qantas executive general manager (people), Kevin Brown, said last week.

The wages dispute escalated last week after unions claimed Qantas was refusing to budge from its offer of a three per cent pay rise, despite 40 meetings over 18 months.

ALAEA national secretary Steve Purvinas says strikes will continue until Qantas comes back with a better offer.

He said the strikes were not designed to hit services hard and next week’s four-hour stoppages would involve half of the engineers on duty at the time.


Commonsense not so common at Qantas

June 19, 2008