Qantas Exec Admits to FWA Air Carrier Considered Lockout Option 2 Weeks Before Fleet Grounding
Qantas unions are again up in arms against Qantas Chief Executive Alan Joyce after another airline official confirmed to Fair Work Australia (FWA) that the company's executive committee discussed a lockout option two weeks before Mr Joyce unilaterally grounded the air carrier's fleet for two days.
Transport Workers Union National Secretary Tony Sheldon said the testimony of Qantas Chief Financial Officer Gareth Evans was damning because Mr Joyce told a Senate committee hearing in November that there was no prospect of grounding the flag carrier's fleet prior to the company's annual general meeting which was a day before he grounded the Qantas jets.
"It proves senior management deliberately and consistently misled the Australian community, the government and their workforce," The Australian quoted Mr Sheldon.
However, a Qantas spokesman clarified on Thursday night that while the air carrier's executive committee discussed the lockout option, locking out the striking employees and refusing to fly all its plans were not specific options.
"The evidence from Mr Evans does not contradict Mr Joyce in any way.... Qantas was considering a range of options to deal with the unsustainable situation of three unions taking damaging industrial action, including a strike by thousands of Transport Workers Union workers the days before the announcement of the lockout and threats of strike for up to a year," Qantas spokeswoman Olivia Wirth was quoted by The Australian.
She said Qantas knew a lockout was an option since it is the only form of industrial action that the air carrier could avail under the law, but insisted a range of options were considered. Ms Wirth said the decision to lockout was made only on Saturday.
The fleet grounding led to stranding thousands of passengers and for the FWA to assume jurisdiction over the air carrier's industrial row with unions. The prolonged work stoppages and the fleet grounding caused financial losses to Qantas, which prompted Mr Joyce to reorganize the company last week by splitting operations into four - domestic, international, Jetstar and frequent flyers programme.
The split was intended to make each group responsible for its growth amid weakness in the air carrier's international operations. However, data from the Bureau of Infrastructure, Transport and Regional Economics showed an improvement in Qantas's international operations which garnered a 19 per cent market share in March 2012. It was a slight increase from the 18.9 per cent share in February, but still lower than the 19.4 per cent in March 2011.
In 2010/11, Qantas's international operations lost $216 million. Despite the recent changes in the company, the air carrier is anticipating another year of loss amid tight competition from foreign carriers.
Mr Joyce on Friday also quashed reports that Emirates would buy a stake in Qantas. Emirates had previously said it wants to work closer with the Australian air carrier on a code-share agreement.
Analysts at Deutsche Bank, which has a 30 per cent stake in Qantas domestic at $1.9 billion, said the split of Qantas into four units could pave the way for Emirates to invest in the air carrier's more profitable domestic operations.
The Qantas Sale Act placed a cap on foreign ownership of the air carrier to 49 per cent.