Qantas Case Study, Qantas Dispute

There are three main parties to this case; Flywell Ltd (F), the parent company, Jetover Ltd (J), the subsidiary, and the Australian Pilots Association (APA) which is representing the 200 pilots currently employed by J. F incorporated J as a wholly owned subsidiary of F and appointed four directors for J from the six directors of F. Two hundred of F’s pilots were made redundant and immediately rehired by J on lower wages and entitlement previously enjoyed at F. New pilots hired by F receive 20% more pay and entitlements for the same work than pilots of J.

During the legal dispute, pickets were set up across the ports as a form of industrial action from the sacked workers in an attempt to hinder the movement of port traffic and slow down waterside productivity. Yet these were promptly removed through court injunctions. In short, the use of the mechanism of corporate restructure, in the case of Patricks, allowed them both to evade paying employee entitlements and dismissing almost its entire unionised workforce. The Waterfront Dispute was heavily debated by all parties on 60 Minutes and all the issues of unionism on the waterside and productivity were discussed. This prompted debate on whether other employers could use such tactics to their advantage.

The issues between the union and the Magic Carpet Airlines are that the airlines do not pay their flight attendants duty rig pay, there is no job security, and they weren’t able to use their sick leave when they were sick. They did not agree with the way they had to give a five day notice to swap routes with other Magic Carpet Airlines flight attendants. Their major concerns were their direct wages, they wanted to be paid more and have duty rig, and have job security. These concerns were all determined by surveys that were mailed out to each of the union members, and flight attendants voicing their concerns.

On August 3, 1981, nearly 13,000 of the 17,500 members of the Professional Air Traffic Controllers Organization (PATCO) staged a walk out and strike. There were four main reasons the union members of PATCO decided to go on strike. First, to address the concerns by members who felt that their work was seriously undervalued and under-rewarded. The second reason was that the Federal Aviation Administration had neglected serious deficiencies in staffing and hardware reliability. Thirdly, their work week was unreasonably long, especially when compared to controllers overseas. The fourth reason for the strike was the FAA’s (FEDERAL AVIATION ADMINISTRATION) approach to management-union relations and the

The Australian Pilots Association (APA) is seeking to establish whether they would be able to pierce the corporate veil in order for the pilots of Xpress Air Ltd (XAL) to claim their former employment entitlements from Kwik Air Ltd (KAL). In its struggle to respond to the economic downturn, KAL incorporated a wholly-owned subsidiary XAL, and its restructure resulted in 200 pilots from KAL being made redundant and re-employed by XAL at lower pay and superannuation. The APA becomes infuriated at the fact that newly employed pilots at KAL are offered the original contract with higher pay. In advising the APA in their representation, the nature of the wrongful act must be identified. Then, we should evaluate the companies’ legal identity within the corporate group and the potential existence of agency relationship between them to figure out whether the veil of incorporation can be lifted in determining the liability that exists for the parties involved.

4. How did the deregulation of the airline industry in the late 1970s influence labor relations at Magic Carpet Air?

In 1936 congress put all commercial airlines under the Railway Labor Act. Since then, there was a period of 42 years under economic regulation where the government oversaw labor relations. Since deregulation, the goals of collective bargaining have not changed much, nor have the objectives of management and labor unions. (Wensveen, 2011, p. 422)

In 1906, the liberal party, Led by Henry Campbell–Bannerman, won the general election. This was seen as a landslide victory for the liberals, who had been out of government for 17 years. The Liberal Party won 397 seats as opposed to the 156 seats won by the Conservatives. However, in terms of votes, it was closer with the Liberals winning 2,565,644 votes against 2,278,076 for the Conservatives.

The Qantas airlines was up against the transport worker union(TWU), Australian and international pilot union( AIPA) , Australian licensed engineers union (ALAEA). These unions enforce strike as they represent engineers, pilots , ground staffs and baggage handlers. The Australian licensed engineer union and the Australian and international pilot association have been in negotiation with Qantas airlines since August 2010. While the transport worker unions had been in negotiation since may 2011. However, the dispute between employees and employers occurred as it became public word that jobs were being sent offshore. The union step in ensure this would not affect employees as well as improved their current employment condition. They demanded for

Despite both parties agreeing on minor issues, there were three major issues that threatened to disrupt air travel nationwide and hit the economy hard. Those issues were pay/wages, stock options, and job security. The Allied Pilots requested an 11 percent pay increase within the first 4 years, 7.25 million shares of the company at $10 below market value, as well as demanding that all of their unionized pilots be the only pilots to fly the new 50-70 passenger aircraft, which were being purchased. However, American Airlines offered only 6.1 percent pay increase over the term of the contract, 5.75 million shares of stock at market value and only a small amount of pilots would fly the newer aircrafts, leaving close to 67 new planes to be flown by regional pilots who’s pay was $80,000 less then, unionized pilots, whose salary was $120,000 or more. Because neither party agreed to the terms laid before them, a request for mediation was issued by the union to the National Mediation Board on January 16, 1996, to which mediation began on February

promote an improvement in workplace relations in the Australian building and construction industry. This may include taking court action to enforce laws. The main role of Australian trade unions is to resolve workplace issues by acting on an employee’s behalf as well assisting in bargaining negotiations for employees (Nicholson, Pekarek & Gahan, 2017, p. 309). The role of employers is to provide a safe workplace that is free from industrial hazards and is not injurious to health. Employers should also allow employees to join a union. The role of all employees is to report any incidents that indicate violations to their health. They also have the right to refuse to work where there are reasonable grounds to believe that there will be a risk of serious injury or harm to their health (Sheldon & Thornthwaite, 2015, p. 385). The outcome employees are clearly focused on is having a safe and injury-free experience in their workplace.

In February 2014, the company announced an A$252 million loss in the first half of FY14 alone, and the need to cut costs by A$2 billion and the workforce by 5,000 full-time employees or part-time equivalents. Planning also to exit underperforming routes, the airline as the end result of this cost reduction programme would be smaller but hopefully profitable. Given the severity of the situation, Qantas is lobbying for the Federal Government not only to repeal or at least alter theQantas Sales Act, but also to guarantee its debt.

United States airlines are currently enjoying a boom due to streamlining over the past few years, streamlining that included mergers and acquisitions. The streamlining was because of many carriers going bankrupt in the last decade, a situation that was attributed to generous base pay rates and work rules negotiated by the unions as a result of previous good profits. The current boom is also tempered by fractious labor relations between the airlines and staff. Delta Airlines suffered from their pilots picketing in 2016. Southwest pushed back purchase of new airplanes partly because of tensions with its pilots. This is despite the two airlines having a history of good labor relations where they have awarded good remuneration to their workers, relations that have made them some of the most financially successful airlines in the world (Bhaskara, 2016).

Collective bargaining is the process by which conditions of employment are negotiated between management, and the labor organization representing employees in the bargaining unit. However, “collective bargaining refers to a situation in which union members and officials meet with an intent to resolve any issues or conflicts, in an attempt to maintain relationships” (Holley, Jennings, & Wolters, 2012, p. 243). The collective bargaining process relies on four aspects: recognition of the meeting, meeting with appropriate parties, bargaining in good faith, and incorporating the reached agreement (Adam, 1997). Nevertheless, collective bargaining activities are governed by the National Labor Relations Act (NLRA). The NLRA requires bargaining

“Major” disputes seek to create contractual rights within an airline. “Minor” disputes develop from interpretation or application of agreements covering rates of pay, rules, or working conditions. “Minor” disputes involve controversies over the definition of an existing collective bargaining/employment agreement. For example, the issues revolving the reasoning of someone being fired is considered a “minor” issue, which must be resolved through the Railway Labor Act of 1926 .