Qantas bidders and Federal Government will not rule out job cuts
Airline Partners Australia and the Federal Government yesterday refused to rule out mass job cuts as the Federal Government tried to allay fears about the airline falling into foreign hands, with the deal being submitted to the Foreign Investment Review Board.
The Federal Government is under increasing pressure from its own backbenchers, unions and the Labor Party to impose strict conditions to help protect 38,000 Qantas workers whose jobs may be affected by the $11 billion deal.
Federal Treasurer Peter Costello and Airline Partners Australia say they are unable to give any guarantees when it comes to jobs, with APA director Bob Mansfield saying while the consortium was willing to consider some conditions, including a commitment to regional services, jobs could not be guaranteed.
Mr Mansfield told Southern Cross Radio, “On staffing, what we’re putting on that, is we can’t guarantee jobs, because I don’t think any employer can”, adding, “Our single focus on this whole exercise … is to grow the organisation with 70 more planes and a 40% bigger network at the end of the five to six years.” “If that happens, jobs will grow.”
Mr Mansfield also flagged that Qantas could sell “non-airline core businesses”, but insisted the airline would maintain its current levels of maintenance work in Australia.
The ACTU, New South Wales Premier Morris Iemma and Coalition backbenchers have demanded the Government set conditions on the deal to ensure no jobs are lost, with ACTU secretary Greg Combet saying that a new poll, sponsored by the union, shows that almost 80% of 400 voters in eight marginal coalition-held seats are opposed to the sale, which highlighted the need for strict conditions, adding on ABC Radio, “What is necessary are guarantees and strictly enforceable conditions, and these things are within the jurisdiction and power of the Commonwealth Government to impose on a sale such as this.”
Mr Costello has rejected all the calls saying that job cuts are an issue for Qantas management, adding, “The fact that this application comes along doesn’t change the fact that the board and the management are responsible for jobs”.
Report by The Mole
John Alwyn-Jones
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