Qantas, engineers to settle dispute
BY: STEVE CREEDY From: The Australian December 19, 2011 12:00AM
QANTAS and its engineers will jointly present a proposed agreement to Fair Work Australia this afternoon to end the most damaging of the three industrial disputes that have cost the airline almost $200 million.
The Australian Licensed Aircraft Engineers Association, the union that threatened to "slow-bake" the airline, is set to become the first to strike a deal after a three-year package was approved by nationwide meetings of union members.
The ALAEA's actions and comments played a major role in prompting Qantas chief executive Alan Joyce to ground the airline on October 29. The industrial action to that point had cost the airline $70m and had resulted in the airline's premium traffic on the east coast plummeting as much as 40 per cent.
The agreement still needs to be ratified by Fair Work Australia but expectations are this will happen quickly, possibly by the end of the month or early next month.
It is understood the deal will see annual pay rises of 3 per cent and allow Qantas to introduce new work practices made possible by changes to Australian aircraft maintenance regulations.
These include a new category of licence and changes to checks on aircraft in transit.
The union also dropped demands that a hangar be built to allow heavy maintenance on Airbus A380 superjumbos to be performed in Australia.
"We will be submitting an agreed workplace determination to Fair Work Australia that represents a good deal for Qantas and its 1600 licensed engineers," a Qantas spokesman said yesterday. "It does not include any of the claims that would have restricted Qantas in making the changes needed to compete in the global aviation industry."
Separate disputes between Qantas and the Transport Workers Union, and the airline and the Australian and International Pilots Association are due to head to arbitration next year.
The TWU is looking at hearings in March while the pilots' hearings are scheduled for June.