Reaction to Qantas announcement

Reactions have been swift and understandably varied to today’s announcement by Qantas that up to 480 jobs will be lost in Sydney. While apparently appeasing unions in the short term, QF should brace itself for a campaign of angst and public backlash as many believe the announcement has merely sugar coated a long term strategy.

An industrial brawl remains on the cards, with Qantas refusing to rule out exporting jobs in the future.

Qantas will review its position as it battles to contain costs in the face of $US60-plus a barrel oil prices.

The decision will mean the closure in May of Qantas’s Boeing 747 maintenance operations in Sydney and their transfer to the airline’s base at Avalon in Victoria.

“We have severe space limitations at Sydney and the limitations will increase in future years,” explained chief executive Geoff Dixon.

Australian Manufacturing Workers Union (AMWU) national secretary Doug Cameron welcomed the decision not to send jobs overseas.

But he said his members were saddened that almost 500 families would have their lives “totally disrupted”.

Mr Cameron would not rule out industrial action, but added: “We want to talk constructively with Qantas over the next few days.”

Unions had warned Qantas management they would face “the fight of their lives” if they had sent jobs out of Australia.

Australian Workers Union (AWU) secretary Bill Shorten said: “Our concern is how on earth can the airline maintain the same standard and take out 500 skilled technicians.

“Our warning to Qantas is, don’t cut too close to the bone because you can’t compromise the (safety) record that you enjoy of superb public confidence in the world’s safest airline.”

Transport Minister Warren Truss welcomed the decision to keep heavy maintenance operations in Australia.

“These job losses will be hard for the Sydney workers but the government acknowledges that Qantas must strive to remain competitive in what is a very cut-throat global aviation environment,” Truss said

Federal Opposition transport spokesman Kerry O’Brien said: “It is clear that John Howard’s Americanisation of Australian workplaces is providing less and less certainty for working Australians.”

NSW Premier Morris Iemma expressed disappointment at the job losses, but Victoria welcomed the “modest increase” in jobs for the state.

Interstate pollies were understandably quick to jump on the bandwagon.

The Mayor of Greater Geelong, Peter McMullin, said there are more than 1,000 people working at Avalon Airport already.

He expects the relocation to increase that by 50 per cent.

“But look the new generation airbus and the Boeing 787 which are coming on stream in 2008 – there’s a strong likelihood that maintenance of them could be accommodated at Avalon as well,” he said.

“This is a huge growth potential for Geelong.”

In Queensland, Premier Peter Beattie said his Government’s ‘Smart State’ strategy is responsible.

“As a result of our Smart State strategies in aviation, aviation is moving north, it’s coming to Queensland,” he said.

“That’s why if you look now we’ve got thousands of jobs – and it’s going to continue – in the aviation industry and the support industries that go with it.”

Cold comfort for the loyal workers in NSW shown the door.