The Australian Licensed Aircraft Engineers’ Association (ALAEA),which represents about 1650 licensed engineers across the Qantas,Jetstar and Network Aviation brands,is threatening industrial action if Qantas does not bow to its demands for an above inflation pay rise of 12 per cent,which it says is because the engineers have not had a pay rise in four years.
The union’s chief,Steve Purvinas,told theHeraldandThe Agethat strike action will only be taken as an act of last resort,saying the union would seek minimise the impact on the travelling public.
“The airline is a mess at the moment because of mismanagement,” he said. “We don’t want to create an excuse or reason for Mr Joyce to blame us for his own failings.”
A spokesperson for Qantas said the company had been negotiating in “good faith” and said ALAEA’s union action was “completely unnecessary”.
“We have contingency plans to minimise any disruptions,” the spokesperson said. “[The 12 per cent pay rise is] something we simply can’t afford and is well above wage increases for other employees across the group.”
Qantas last month announcedcuts to capacity,the number of flights it makes available,in an attempt to mitigate higher fuel costs. Morgan Stanley analysts this week downgraded their outlook for Qantas’ earnings and share price due to the surging fuel costs,but said the company’s “recovery is well underway and the balance sheet is being repaired faster than anticipated”.
Joyce,who famously grounded planes in 2011 during an industrial dispute,has taken a notoriously tough approach to negotiations with unions over pay and conditions.