Qantas, unions to take binding arbitration

INDUSTRIAL disputes between Qantas and its key employees will now be dealt with through binding arbitration – a move that could take months but which Qantas says will bring certainty to passengers.

Unions representing pilots and baggage handlers say the flying kangaroo has failed to display good faith in the negotiations, and that binding arbitration is something the airline wanted all along.

However, engineers said they were satisfied with the move to arbitration, describing it as the appropriate outcome for the appropriate time.

Negotiations between the airline and the Transport Workers Union (TWU), the Australian and International Pilots Association (AIPA) and the Australian Licensed Aircraft Engineers’ Association (ALAEA) collapsed on Monday, hours before the midnight deadline set down by Fair Work Australia (FWA).

The federal government intervened on 29 October after Qantas grounded its entire fleet, with FWA then terminating the dispute and giving the parties 21 days to reach a settlement.

But throughout Monday negotiations broke down with each of the parties.

Speaking to reporters in Sydney, Qantas chief executive Alan Joyce said while his preferred option had been to resolve the dispute through negotiation, it was now time to let FWA bring the matter to a close.

Binding arbitration could take months, he said.

But it would also lead to an agreement that would be in place for up to four years and it would ban industrial action by the unions or the airline during that time, Mr Joyce said.

“This brings certainty to our customers, our employees and our shareholders,” he said.

The TWU and pilots slammed the move to binding arbitration, accusing the airline of refusing to extend talks by a further 21 days.

“Qantas has not displayed good faith in these negotiations,” Tony Sheldon of the TWU said in a statement, adding Qantas had refused “point blank” to extend negotiations.

“The TWU wanted a sprint to the finish, but Qantas just hopped on the treadmill.

“The real losers are Australian Qantas employees, of whom none have any future job certainty and remain stuck with a work choices agreement.”

AIPA vice president, captain Richard Woodward, said negotiations broke down with the airline because Qantas had no intention to come to an agreement.

“We had until 11.59pm tonight but there is no further point in negotiating,” captain Woodward told reporters outside Fair Work Australia in Sydney on Monday.

“This is a clear intention of the company to move to arbitration all along.”

Steve Purvinas of ALAEA said the engineers’ union had not sought a 21 day extension, although progress had been made in negotiations.

“We’ve just got a few outstanding matters that we are quite happy for Fair Work Australia to decide in arbitration,” he told AAP.

“We were thinking … a 21-day extension wasn’t going to help us and it’s just easier to sit down before a full bench and get them out of the way.”

He said the ALAEA was hopeful of resolving the final matters by Christmas.

Qantas described claims the airline wanted negotiations to end in binding arbitration as “nonsense”.

“Either way the process would have gone, industrial action could not have taken place,” Mr Joyce said.

“Because even if we had reached agreement, that would have gone out for a vote. That would have still meant that none of the unions or the company could have taken industrial action.

“So it’s absolutely false to say that.”

Mr Joyce said Qantas would be happy to accept the decision of FWA and he called on the unions to do the same.

A compulsory arbitration date will be set at a date determined by FWA.

Workplace Relations Minister Senator Chris Evans said the federal government will oppose any challenge to the current Fair Work Australia order, which bans industrial action by the unions.

“In the interests of certainty for the travelling public, the tourism industry and the wider economy, the government will oppose any challenge to the current order terminating industrial action at Qantas,” Senator Evans said in a statement.

Opposition industrial relations spokesman senator Eric Abetz added: “The sooner certainty is given to the Australian travelling public, especially in the lead-up to Christmas, the better.”

Mr Joyce confirmed on Monday night that the dispute with the ALAEA will be resolved by arbitration.

“We haven’t been able to reach a new agreement with the ALAEA so we will now let the independent umpire decide,” Mr Joyce said.