FWA Endorsement Guarantees Qantas 3 Years of Industrial Peace With Aircraft Engineers

Fair Work Australia (FWA) endorsed on Tuesday the proposed workplace determination between Qantas and the Australian Licenced Aircraft Engineers Association (ALAEA). The two parties presented the proposal to FWA in late December,

With the determination, Qantas is guaranteed of at least three years industrial peace with aircraft engineers. The determination covers until Dec 31, 2014.

It provides for a 3 per cent pay increase yearly, new licencing arrangements, changes that would ease restrictions on extended hours rosters and arrangements for the transition to retirement for union members.

FWA pointed out that the deal will just substantially continue the terms and conditions between the embattled airline and the aircraft engineers in the past. It excludes more expensive proposals such as the construction of a new hangar and expanded job security protection.

The FWA arbitration was the result by the unilateral decision of Qantas Chief Executive Alan Joyce in late October to ground the air carrier's fleet, in the process displacing thousands of passengers. The grounding was preceded by several strikes and work stoppages initiated by the aircraft engineers, pilots and ground crew.

The endorsement of the ALAEA deal by FWA is just one less headache for Qantas. The air carrier needs to settle labor disputes with the baggage handlers and pilots. The FWA hearing with the Transport Workers Union, which represents the baggage handlers, is scheduled in late March and the one with the Australian and International Pilots Association is in early June.

"This is a positive outcome that will allow Qantas to move forward with certainty and allow our customers to continue to book with confidence," Australian Aviation quoted Mr Joyce.

"The determination from Fair Work Australia does not contain any of the restrictive demands that would have handed control of parts of the airline to the union, however, it provides reasonably pay increase to our workers," Mr Joyce said.

The months-long industrial row with airline workers had cost Qantas a lot of money. Other airlines such as Virgin Australia and Tiger Airways have taken advantage of the labor dispute by offering more flights in and out of several Australian cities as well as lower airfares.