The Guardian 24 August, 2005
Qantas cuts jobs
to protect record profit
Qantas workers will pay for the airline’s success by losing their jobs as CEO Geoff Dixon moves quickly to ensure rising fuel costs don’t eat into record profits. The company announced this week that many as 2500 jobs could be cut or moved offshore as Qantas plans to slash costs by a further $1.5 billion by mid-2008 to counter rising fuel costs.
Australian Manufacturing Workers Union’s Tim Ayres says job cuts are not necessary to protect the record $763.6 million profit.
"The maintenance operation has underpinned Qantas’s strong profit result. The travelling public’s come to expect a high level of excellence and quality in Australian maintenance and we think Qantas should be investing in the future of Australian maintenance of its fleet."
Unions are also concerned Qantas may shift administration and IT jobs to India, following the decision to axe senior managers last week.
Linda White of the Australian Services Union says Qantas workers are sick of threats to their job security as profits continue to rise.
"Every year they say exactly the same thing — that the staff have got to tighten their belts, the productivity’s got to get up — and yet we see them year after year increase their profit beyond anyone’s expectation.
"I guess from the staff’s point of view, they’re a bit sick and tired of the lack of recognition."