Tuesday 11 October 2011

A possible " Pyrrhic outcome " !

There is something unhealthy about the deteriorating conflict between Qantas and it's unions. This has progressed well beyond the usual " argy-bargy " when pay and conditions are being negotiated - and unless common sense comes into the equation there is a distinct chance that it will end with a Pyrrhic outcome !

Strikes are a legitimate weapon when unions reach an impasse in negotiations, but the tactics by the Australian Licensed Aircraft Engineers is not fair play.   They announced a four hour stoppage - and then cancelled that at the last moment.   An airline can not be run on other than a forward planning basis and consequently flights were cancelled and passengers inconvenienced - but the engineers did not actually strike and therefore received their full pay packets.

It is almost unbelievable that the unions are publicly advising travellers planning holidays this Christmas not to book with Qantas.   Eventually, this dispute will be resolved, and when it is the work force needed by Qantas will entirely depend on what market share is held by the airline.    If Qantas planes are flying half empty then some services will be cancelled - and if Qantas flies fewer aircraft then layoffs of engineers and baggage handlers become inevitable.

This dispute is about pay and job security.   Qantas has signalled that some maintenance will be done overseas and that a new, low cost service may be developed in an Asian city.   The danger is that if the unions manage to cripple Qantas profitability and market share there may be no option other than to close shop in Australia and move the airline in it's entirety overseas.    We would then lose our iconic national carrier.

It sounds like a personal edge is developing between some bitter people both in Qantas management and in the union hierarchy.    Time for both to take a deep breath, think sanely and sensibly - and sit down and work this thing out.

The present situation is simply a recipe for disaster - for all those who work for Qantas - for the airline - and for  those Mums and Dads who have money invested in Qantas shares.

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