Qantas puts 164 more in Victoria's jobs black hole

Date
    July 27, 2012

Andrew Heasley


VICTORIA'S aviation industry has suffered another blow, with a Qantas joint-venture company set to close in September with the loss of 164 skilled jobs in Tullamarine.   

It comes as a potential code-share deal between Qantas and Emirates has raised fears that the Australian airline risks surrendering much of its lucrative international passengers to its Middle Eastern rival.

Qantas yesterday confirmed that it was in talks with a number of airlines, including Emirates, about forming alliances.

At Tullamarine workers were shocked to find out that they were to lose their jobs. LTQ Engineering - set up in a partnership between Qantas and Lufthansa Technik in 2008 to overhaul passenger jet engines - is expected to run out of engine work by August 31, one of the company's advisers told The Age.


LTQ worker Ryland Robinson was surprised. ''This has come out of the blue,'' he said. ''I'm bitterly disappointed in how we've been treated and how it's gone. The work has been shipped overseas. It's wrong, you've got to look after your own.''   

Qantas' head of domestic operations, Lyell Strambi, said the closure was ''regrettable but inevitable following sustained financial losses''.

Australian Workers Union state secretary Cesar Melhem said the closure was ''an absolute disgrace''. He called on the federal government to intervene to save the jobs.       

''I've spoken to [Employment Minister Bill] Shorten … to conduct a meeting between ourselves, Qantas and Lufthansa to see whether or not this place can be salvaged,'' he said.

''Obviously it's another devastating day in Victoria: 450 jobs at Ford, 112 at CMI [a Ford supplier], 164 jobs here, on top of over 500 jobs announced by Qantas a few months ago. I don't know when the bleeding's going to stop.''   

Mr Melhem said company executives had told him LTQ expected to lose $37 million over the next six years. LTQ confirmed it was yet to make a profit but said workers' entitlements would be met. The company said it had ''made consistent losses in each year of its operation … LTQ is not financially viable.''

The joint venture was established to maintain and overhaul jet engines for Qantas 737s, 767s and 747s and Airbus A330s and A320s.

Mr Melhem said the work would be done in Germany, Scotland, the Philippines and China instead.   

He said Qantas chief executive Alan Joyce had broken his promise that no Australian jobs would be lost overseas as a result of its engineering review.   

A Qantas spokeswoman said that Mr Joyce had said no Australian jobs would be lost overseas as a result of its review of heavy aircraft maintenance. This was not a case of heavy aircraft maintenance.

With MATT O'SULLIVAN

Read more: http://www.theage.com.au/national/qantas-puts-164-more-in-victorias-jobs-black-hole-20120726-22veo.html#ixzz21lQqsIYa

Qantas, union spar over scathing staff survey

By Philippa McDonald

Updated July 26, 2012


A survey conducted by the aircraft engineers union has found an extremely high level of dissatisfaction among Qantas workers.   

Almost 3,000 airline employees were surveyed, and Qantas staff overwhelmingly had little faith in the ability of the airline's management and board.   

Qantas is calling the survey rubbish, but the Australian Licensed Aircraft Engineers Association is standing by its findings.

"These are the things that Qantas undoubtedly uncovered through their own internal surveys and never wanted released," union national secretary Steve Purvinas said.

"We've got these answers from employees - not just union members - they come from managers."

The union used one of the industry's most popular websites to survey pilots, flight attendants, ramp managers, customer service and support staff.

A total of 2,750 responded over several months on issues including communications, safety and management.   

Virgin Australia got the thumbs up from its staff, but Mr Purvinas says that was not the case with Jetstar and Qantas.

"Only 4 per cent of Qantas engineers feel that senior management are taking the airline in the right direction," he said.   

"And only 43 per cent of Qantas managers think that Qantas management is taking the company in the right direction."

Many Qantas employees said they would not even recommend the airline to their own families.   

"A lot of these workers are still proud to work for the airline but when it comes to recommending the quality of the product to family and friends ... Qantas pilots recommend the airline 3.5 out of 10, Jetstar recommend the airline 2.5 out of 10," he said.

"Then where we look at the other airlines that they compete with, Virgin staff recommend 8.3 out of 10."
'Gossip and rumour'

Qantas spokeswoman Olivia Wirth says that is totally at odds with the airline's own staff surveys.

"The survey was conducted by the licensed engineers' union on an aviation gossip and rumour website. The survey lacks independence and transparency and is clearly skewed," she said.

"The survey was on the same website where Mr Purvinas infamously said during last year's damaging industrial dispute that he would bake Qantas slowly.

"It's disappointing and sad that Mr Purvinas is continuing his campaign to damage the Qantas brand after he disrupted tens of thousands of Qantas passengers last year by taking strike action."

But Mr Purvinas says the survey is not about waging war between his union and Qantas.

"These guys don't know what they are doing we need someone else in charge, someone that we can look up to and follow their direction," he said.   

Qantas says it has got to make difficult changes to remain competitive and that it is confident most of its employees accept that reality.