Industrial Conflict at Qantas Industrial Relations

Question: Discuss about theIndustrial Conflict at Qantas for Industrial Relations. Answer: Introduction Anyone who is deriving an earning with the help of any work gets engaged with an organisation and with the management of the concern. Such work management falls under Industrial Relations practice. For the overall performance of an organization, the quality of relationship of employees and transformations of industrial relations are need to be working hand in hand. The quality of employees also depend on their employment terms and conditions. This affects their work life and their abilities for enjoyment in their lives outside workplace. Today be it debates regarding the nations policies or about strategic decision making of a company, everywhere equity and efficiency are the minutes of the conversations. In Australian workplaces a great deal of research has been going on in resolving workplace disputes (Gramberg,2006). A workplace dispute can also be termed as an industrial dispute. It is a situation where employers and employees disagree over wages or working conditions. As a resul t of such dispute production often gets a hit or a slowdown where one has to take up an action also termed as an industrial action (Mules, 2013). In this paper we will discuss a case study of an Industrial dispute in of the worlds ten top most airline flagship brand, the Qantas or the Queensland and Northern Territories Aerial Services. The airlines fly to all the continents and is Australia's primary legacy air carrier. The airlines is in operation over 90 years and today is the nations iconic symbol (Bamber, 2012). Case Study: Qantas An industrial dispute occurred in between the Qantas Ltd and the trade unions named : a) TWU or the Transport Workers Union, b) AIPA or the Australian and International Pilots Association and the c) ALAEA or the Australian Licenced Aircraft Engineers Association. This dispute started during the mid 2010 and continued through year 2011 into year 2012 (Forsyth Steward, 2013) The FWA or the Fair Work Australia jurisdiction gave an order for the termination or suspension action under the five situations given in the Fair Work Act 2009 discussed in the April issue of the EMployment Law Bulletin.It is discussed that the FWA has used up their power in making 18 decisions till now and it examples the various aspets of the FWA in matte related to education, skills, jobs and workplace or industrial relations. Industrial relations has always been highly relevant in the aviation industry. The airline industry has been a great study so far with ample cases of disputes in their operations, human resource and industrial disputes. The Background In the year 2011, dated 29th of October a media press release was made by the Qantas stating that the company is going to be under a lock out situation from 31st October 2011, 8.00 pm affecting licensed engineers, staff. Baggage handling staff and international and AUstralian pilots. It was stated that the fights which were already in the air will finish their rounds but no new departures will be made anywhere by the organisation in the world. Such a lockout was mentioned to be continuing until the three above mentioned unions do not drop their impractical extreme demands. Such demands were not possible for the company to be agreed upon. Such an action was a response to the demands made by all the three unions AIPA, TWU and the ALAEA under the Fair Work Act. Some of these demands were work bans, some stoppages proposed by the TWO, a one hour stoppage proposed by the ALAEA and in flight announcement bans proposed by the AIPA. Two trade unions TWU and ALAEA made the tactic of notifying Qantas about its pending stoppage. Once flights were cancelled they rearranged it and cancelled such stoppages.The cost of undergoing this tactic was $68millions and every week the company was undergoing a loss of $15 million revenue. Over 7,000 passengers were affected due to the 600 flights which were cancelled. Dispute Right from the beginning while making agreements with these three unions, Qantas has cleared it that job security claims of the unions will not be entertained. For Qantas, such claims where a threat for the management in the running of their business. The management saw it as a fit which is a managerial prerogative. This is a concept which is prevalent for long in the Australian industrial law where acknowledgement is given to the permitted reach of unions regulatory interference into business decisions. In April 2011 the CEO of the air carrier already discussed the unions extreme bargains and demands. The company also articulated its positions in various national newspapers and advertisements. For these three unions their tactics increased and became big enough to revolve around the protected industrial action of the Fair Work Act. The Fair Work Act, pt 3-3,states that employees who have representatives to make bargains can organize and make negotiations for making new agreements with the enterprise. If any statutory protection is absent then industrial actions taken will be considered as unlawful under the common law. There is limitations to undergo strikes or get engaged in any other forms of industrial actions like going slow or work bans. All these require procedural requirements where there can be actions proposed and approved by majority of the employees in favour of such actions. Protected industrial actions like lockouts can also be taken by employers as a response to any actions taken by employees. Reasons for Dispute Global aviation industry is characterised by three primary trends below the surface. These are consolidations and fights for survivals experienced by legacy air carriers, low cost value added sector enhancement and shift of the global dominating country to Asia and Middle East from USA and Europe.Such underlying trends give rise to labour costs in pay rates and productivity on the services provided. Here the situation and circumstance shape up the options for industrial relations. The costs of getting it wrong is really high and even Bankruptcy many times. Aviation companies generally have low margins, low returns, are labour intensive and are in the middle of huge competition. All these require high amount of investments.For such a business controlling costs. Wages and efficient management of industrial relations are central aspects of their day to day operations. Companies like the Qantas goes through difficult industrial relations policies due to this reason (Bussell,2010).Reasons of dispute can be outlines in primary three areas:- Enhancement demand for wages Work conditions and Influence of policies of the management on wages and security of jobs (Orsag. 2011) Employer and Union Perspectives In response to the demands of the trade unions Qantas made strategic plans and proposal to change the business operations for improving efficiency and reducing costs. Here global outsourcing was a major proposal which was causing around 2800 full time employments but saving $300 yearly. The union was concerned about the security of their jobs (Gostencnik , 2011). They were also concerned that low paying pilots and less trained staff can ca use safety issues to the carrier. Hence they made extreme bargains. Findings The FWA or Fair Wage Act decides to publish the reasons behind their judgement of the lockout rather than giving direct orders. Although such decisions will not have a big value in the future but references can help brands in the future. A conclusion was made that all the three trade unions along with their protection actions was not threatening enough which can pose a damage to the industry and tourism (McCrystal, 2011). As per the FWA the issue must have been tackled in a balanced manner. The lockout made by Qantas in fact affected passengers and cargo services. Hence their decision for suspending it was pursuant (Fanner,2011). Conclusion With such a termination the company was able to fetch protracted reasonings and negotiations. This was a trigger for agreement arbitrations (Tuck,2011). Now since this even the ALAEA and Qantas are into agreements treated as taking consent based on workplace regulations in front of the Full Bench. As speculated not much bargaining goals remain for the ALAEA.Today bargaining in employment sector is one of the primary methods how terms and conditions are secured inbetween employers and employees (Bray,2013). Using protected industrial acts under law is the only way employees can safeguard their interests and rights. References Bamber, B. 2012. Current Airline Disputes at Qantas in Australia: Contrasting Perspectives. New York Times [online]. P20. Available at: https://www.law.harvard.edu/programs/lwp/htup/2012/presentations/HTUP%20QF0112gb%202send2EB.pdf Bray, M. 2013. From the Arbitration System to the Fair Work Act: The Changing Approach in Australia to Voice and Representation at Work. Retrieved from: https://www.adelaide.edu.au/press/journals/law-review/issues/alr_34_1_ch2.pdf Bussel, S. 2010. Turbulent Times A Practitioners Perspective Of Industrial Relations in Aviation. In: Laffer Lecture, University of Sydney. p15. Forsyth, A. and Steward, A. 2013. Of Kamikazes and Mad Men: The Fallout from the Qantas Industrial Dispute.Melbourne University. Available at:https://law.unimelb.edu.au/__data/assets/pdf_file/0019/1700128/36_3_1.pdf Fanner., S. 2011. Enough is enoughImmediate Govt Intervention needed on Qantas dispute. Retrieved from https://aha.org.au/wp-content/uploads/2011/04/MR-Qantas-strikes-291011.pdf Gramberg, B. 2006. Managing Workplace Conflict: Alternative Dispute Resolution in Australia.Federation Press, 236. Gostencnik., V. 2011. 6 key leSSonS For employerS From the QANTAS diSpute. Retrieved from https://www.corrs.com.au/assets/thinking/downloads/InBriefWRLessonsfromQantasNov11.pdf McCrystal ., S. 2011. Why Fair Work Australia terminated the Qantas industrial action Mules, R. 2013. Workplace Disputes:The Qantas Disputes And The Toll/Coles Dispute. Busidate, Vol. 21(4), p. 2. Orsag.,T. 2011. Qantas unions battle job cuts and outsourcing. Retrievde from https://www.solidarity.net.au/mag/back/2011/40/qantas-unions-battle-job-cuts-and-outsourcing/ Smith., G. 2012. The Qantas dispute: employer's lockout, ministerial intervention and Fair Work Australia decision. Retrieved from https://www.claytonutz.com/knowledge/2012/may/the-qantas-dispute-employer-s-lockout-ministerial-intervention-and-fair-work-australia-s-decision Tuck., J. 2011. Six key lessons for employers from the Qantas dispute. Retrieved from;https://www.corrs.com.au/publications/corrs-in-brief/six-key-lessons-employers-qantas-dispute/