Qantas announced areview of its ground operations in August,looking to save up to $100 million a year by shifting baggage handling,aircraft cleaning and ground support work to third-party providers at 10 major airports.
The affected workers were able to"bid"to keep the work by outlining how they could do it more cheaply than a third party but Qantas said on Monday it had not accepted the proposal put forward by the Transport Workers Union.
Qantas Domestic chief executive Andrew David said the TWU bid claimed it could make significant savings but did not outline in"sufficient practical detail"how it would be achieved.
Mr David said it was a tough day for Qantas and particularity its ground handling teams,and that the decision was only being made because of COVID-19.
“In normal times we wouldn’t consider something of this nature,"he said."Unfortunately because of the situation we’re in,we have to do it."
TWU national secretary Michael Kaine said the workers’ bid produced with major consulting firm EY was thorough,competitive and delivered millions of dollars in savings.