Qantas to outsource 2,000 jobs

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December 01 2020
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Baggage handlers, ramp workers and cabin cleaners at airports around Australia will see their jobs move offshore as Qantas looks to recover costs following the COVID-19 lockdown.

On Monday, 30 November, Qantas told 2,000 staff across 10 airports in Australia that they would no longer be part of the company due to a restructure.

During its bi-annual reporting in August, Qantas revealed a $2.7 billion loss, with further significant losses projected in FY21 due to a drop of revenue in excess of $10 billion.

Since the beginning of the pandemic, the Qantas Group has taken on in excess of $1.5 billion in additional debt.

Qantas domestic and international CEO Andrew David said it was a tough day for the company, thanking staff for their professionalism and service.

“Unfortunately, COVID has turned aviation upside down. Airlines around the world are having to make dramatic decisions in order to survive, and the damage will take years to repair.

“While there has been some good news recently with domestic borders, international travel isn’t expected to return to pre-COVID levels until at least 2024. We have a massive job ahead of us to repay debt, and we know our competitors are aggressively cutting costs to emerge leaner.

While Qantas states it is cost cutting, the TWU pointed to the over $800 millions in government support to Qantas, including JobKeeper, with no conditions attached on retaining jobs or capping CEO salaries.

“Workers are angry at the federal government’s lack of intervention. It continues to pump millions of dollars into Qantas through wage supports and other financial assistance with no conditions attached. There is no benefit to the Australian community when taxpayers spend billions only to result in workers in good jobs being thrown on the scrap heap,” TWU national secretary Michael Kaine said.

The TWU also highlighted the company’s annual report, but instead of looking at the company’s losses, pointed out the millions of dollars being paid to the company’s executives.

“Qantas announced last year its CEO received a $24 million pay package; he was the highest-paid CEO in Australia and the highest-paid airline executive in the world,” the union said.

TWU national secretary Michael Kaine said Australian workers were devastated to hear Qantas’ announcement they rejected a bid for their jobs.

“This is a dark day as Qantas management rejects a thorough and competitive bid by its highly skilled and dedicated workers to keep their own jobs. Qantas workers have worked hard over recent months with EY to find millions of dollars in cost savings and efficiencies. EY advised us our bid was competitive in comparison to other contractors. To reject its own workers like this is spiteful and will hurt the airline deeply,” he said.

“Qantas has spent hundreds of millions in training these workers up over decades to achieve high standards, and the idea of pushing them out the door to replace them with less trained workers on lower conditions is sickening. Families across Australia are now facing a grim Christmas where the future lies at the end of a Centrelink queue,” he said.

In August, the unions took Qantas to court due to using JobKeeper as a way to underpay staff millions.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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