Copyright © 2019 News in Flight | All Rights Reserved
Australian carrier Qantas has confirmed it will retrench 2000 workers as it outsources all ground handling work at major Australian airports after rejecting a bid by employees to save their jobs.
The staff retrench will be completed by early next year, that brings the number staff laid-off to 8500 since the start of COVID-19 outbreak.
Qantas says it will save up to $100 million a year by outsourcing grounding handling jobs.
The airline has this morning notified around 2000 employees that it will move to outsource ground handling operations at 10 airports across Australia
In August, the airline announced its reasons for needing to restructure its ground handling operations, which includes baggage handling and aircraft cleaning, and commenced a review of external bids from specialist ground handlers and in-house bids from employees and their representatives.
The Transport Workers Union, submitted a proposal on behalf of the affected employees to keep the jobs in-house., the TWU outlined how they could do it more cheaply than a third party, but Qantas rejected the proposal and Qantas Domestic chief executive Andrew David said “The TWU’s in-house bid claimed that significant savings could be made but it failed to outline sufficient practical detail on how this might be achieved,”
“The resulting national bid was, by their own admission, ‘theoretical’ with no roadmap of how projected cost savings would be achieved” said the Qantas. “For instance, the proposal resulted in 1 million surplus labour hours – or around 900 roles – but no details on how to deal with that surplus.” it added.
“A number of external bidders, some of whom already provide these services at 55 airports across Australia, were able to meet all of the objectives, including reducing annual costs by approximately $103 million.” Qantas said
Today’s announcement follows a $2.7 billion statutory loss for the Group in FY20 due to COVID-19 and associated border restrictions. Further significant losses are projected in FY21 due to a drop of revenue in excess of $10 billion. Since the beginning of the pandemic, the Qantas Group has taken on in excess of $1.5 billion in additional debt.