Qantas (ASX:QAN) to close long-haul cabin crew contract

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Qantas (ASX:QAN) to close long-haul cabin crew contract

Qantas, cabin crew deal, Covid-19
Image source: © Iwikoz6 | Megapixl.com

Highlights

  • Qantas Airways would apply for contract termination with long-haul flight attendants.
  • The move would result in large pay cuts as the workforce voted against the new “flexible” rosters that the airline suggested for recovering from the pandemic.
  • Presently, the crew of Qantas International are limited to working on aircraft’s specific model.

On Thursday, Qantas Airways Ltd. (ASX:QAN) said it would apply for contract termination with long-haul flight attendants. The move would result in large pay cuts as the workforce voted against the new flexible rosters that the airline suggested for recovering from the pandemic.

According to Andrew David, chief executive of Qantas International,

Presently, the crew of Qantas International are limited to work on aircraft’s specific model, namely, Boeing 787s, Airbus A380s and Airbus A330s. Qantas stated that the present agreement is outdated and restrictive and wishes to train all crew to work across all aircraft types. Chiefly, 20% of the 2,500 Sydney-based airline staff can work on only one aircraft type and with the new agreement, the staff will be able to work on all types of aircraft and fulfill the demand.

The proposed four-year deal that comprised allowances and better pay was rejected as long-haul cabin crew that operates on London, and North America routes voted against the agreement after six months of negotiation. Counteroffer by the union was “unworkable” as it would result in AU$60 million additional costs over four years.

The shares of Qantas closed at AU$5.04 with a market capitalisation of AU$9.59 billion.

Bottom Line

Qantas stated that the airline is open to negotiating the agreement and putting the deal again on the table. A reply from the union will be awaited.

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