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Qantas unable to justify 5,000 job losses :Union leaders

March 01, 2014 00:00:00


SYDNEY, Feb 28 (AFP) : Union leaders Friday said Qantas boss Alan Joyce could not justify why he needs to cut 5,000 jobs during crisis talks as the carrier stepped up pressure on the government to help stem massive losses.

After a posting a Aus$235 million (US$210 million) loss in the six months to December 31, Joyce met union heavyweights to detail his decision to axe the jobs and freeze wages following complaints of no consultation and threats of strike action.

But Australian Council of Trade Unions secretary Dave Oliver said his explanation was not good enough.

"The company was not able to justify how they came up with the 5,000 jobs number," he told reporters.

Australian and International Pilots Association president Nathan Safe said "there's still a lot of uncertainty and a real lack of clarity".

Transport Workers Union national secretary Tony Sheldon added: "The company has come to the table without the capacity to say what they're actually up to and how this is going to save one single job in the future."

The heavily unionised Flying Kangaroo was crippled by a series of rolling staff strikes in 2011 that culminated in Joyce grounding the entire fleet for two days, stranding tens of thousands of passengers worldwide.

Qantas's drastic restructuring, which also involves deferring delivery of new aircraft, is part of a plan to save Aus$2 billion over the next three years as it battles record fuel costs and fierce competition from subsidised rivals.

Its major domestic competitor, Virgin Australia, is also suffering, posting its own first-half net loss of Aus$83.7 million on Friday, blaming its battle with Qantas for domestic market share and economic uncertainties. Virgin chief John Borghetti urged the government to think carefully about the consequences if it helped bail out Qantas.

"Providing a financial facility to the detriment of the rest of the industry-as I hope our government and opposition agree-is wrong. Two wrongs don't make a right," he said.


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