Further cuts likely at Qantas

Issue 

Further cuts likely at Qantas

By Fred Masters

Further cutbacks are likely at Qantas as the company presses for productivity gains of 5% annually.

As well, British Airways' recently acquired 25% shareholding in Qantas could be a pointer to further cuts on top of the 1853 already scheduled over the next two years. BA, which has cut its work force by a quarter in recent years, now has substantial influence on the Qantas board.

The Qantas cutbacks come on top of 3500 jobs slashed 18 months ago. The latest cuts will be carried out as new computer systems are introduced and aircraft and offices are sold. Recommended by accountants Coopers and Lybrand, they will cut $95 million from the merged company's wages bill and $65 million from other expenses.

The sales sector will be slashed dramatically through the merger of Qantas, Australian and Westpac travel offices, and aircraft engineering will be streamlined.

The financial and information departments are also facing rationalisation between Sydney and Melbourne, while the catering department is to be cut further through subcontracting.

A voluntary retirement package, open for only two weeks in mid-February, will offer two weeks' pay for each of the first five years of service and three weeks for each year thereafter. There will also be some travel benefits for long-term employees taking the package. Compulsory lay-offs will follow after March 3.

Most unions are pressing for contractors and casual and non-union labour to be first to go, however, it is not certain they will get company agreement to this.

The cuts, which will dramatically boost profits, are closely related to the Qantas sell-off and merger with Australian Airlines. The government has delivered a further windfall to the new private shareholders by cancelling the company debts of around $1.3 billion.

If you like our work, become a supporter

Green Left is a vital social-change project and aims to make all content available online, without paywalls. With no corporate sponsors or advertising, we rely on support and donations from readers like you.

For just $5 per month get the Green Left digital edition in your inbox each week. For $10 per month get the above and the print edition delivered to your door. You can also add a donation to your support by choosing the solidarity option of $20 per month.

Freecall now on 1800 634 206 or follow the support link below to make a secure supporter payment or donation online.