AFAP Qantas Pilot Council Briefing No.13
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Short Haul EA update
We continue to work through our log of claims with the Company and make representations on behalf of members in response to Qantas’ position on various items.
At our most recent meeting with the Company last week, Qantas presented an outline of a package, which it stated was the basis on which it would be prepared to reach an in principle agreement. To be clear no agreement has been reached with the AFAP. A further update will be released on Short Haul bargaining, which will outline our response to the proposed package.
In terms of wage increases for Short Haul pilots, Qantas now proposes the addition of only a level 5 salary for Captains and First Officers (the previously offered level 6 from December has been removed) and an increase in MGH to between 58-62 hours per bid period. Qantas’ position is that the pay levels remain based on “years in rank” rather than “years of service”, however it was proposing all SH pilots would move up a level on commencement of a new EA regardless of their anniversary date.
The AFAP’s preliminary response was that the proposed offer falls well short of pilot’s expectations. We reinforced the challenge Qantas faces in trying to meet its arbitrary “Wages Policy” in the context of the sacrifices made by Short Haul pilots during the pandemic and also the current economic reality (more below).
We also took the opportunity to reiterate our position on the importance of addressing issues identified by our members, such as rostering rules that drive improved work/life balance. Some common ground has been reached with items such as DPC60 (a mechanism similar to duty RIG in our log of claims) and paid reserve on day 1. Some other proposed solutions on the table are promising and go some way to improving work life balance, however we are concerned about the concessions that are tied to these proposals.
Wages Growth
It is important for pilots to keep in mind that the Company’s airfares have risen significantly in line with inflation over the last few years (
more than 6% in only 6 months to March 2024 for example), and the Company’s justification for the price rises has been cost base increases:
"This increase reflects inflationary pressures being felt more broadly across the economy as well as some above-inflation rises in industry costs” – Qantas spokesperson.
In this context, some argue that the increase in expenditure for pilots has already been somewhat ‘costed in’. Without an increase in real wages in line with inflation, an increasing profit margin becomes the primary beneficiary of the cost increase for consumers. According to an
OECD report, substantial increases in corporate profits have contributed far more towards the acute inflation we have experienced in the last few years than wages growth and continue to contribute to the chronic inflation we are experiencing.
In developing the pay scales for our log of claims, directed by the very clear survey results, we looked at the 2022 and 2023 inflation spike and the chronic inflation forecast through the life of the EA. We calculated the difference between the pay rises received and the acute inflation experienced in Australia over those two years.
Our position is the headline wage freeze policy can be achieved while ensuring SH pilots do not go backwards relative to inflation through other means (such as additional pay-scales), however, an additional level 5 falls well short of what you have told us is acceptable. In addition, in their current form, the additional pay level proposed offers very little to junior pilots in category.
We will continue to workshop and negotiate solutions for the benefit of our members and Short Haul pilots as a whole.
Concessions
It is pertinent to remind pilots that items they may not currently utilise in their EA are often still of high value in negotiations. It is also worth considering the ‘unintended consequences’ of major changes to any EA. Our EAs are necessarily long and complex, a result of countless protections negotiated into EAs over generations. Many of the seemingly irrelevant parts are of great importance in protecting us in ways we may not immediately identify.
Recent history has proven that dramatic changes to parts of our EAs can generate unintended significant, and long-term negative consequences for pilots. It is important pilots give due consideration to the value of the concessions that they are willing to make.
Next Steps
In line with our commitment to good faith bargaining, we will outline to the Company the requirements of a proposal that we believe would be fair and gain the support of our members. We continue to make progress negotiating towards an in principle agreement and remain hopeful that Qantas will continue to fulfill their legal obligation to negotiate in good faith with the AFAP.
Even if an in principle agreement is not reached between Qantas and the AFAP, a document may still lawfully be released to vote. Our advice is before forming a final view on a proposed Agreement, pilots should wait until the full detail is released and guidance has been provided by the AFAP.
It is also worth keeping in mind that in any EA, there are concessions exchanged for improvements. We believe correctly identifying what is a concession, what is mutually beneficial, and what is an improvement is key to identifying a reasonable negotiated outcome.
Underpayment/non-payment of entitlements
The AFAP legal team are currently investigating a number of potential underpayment cases on behalf of members while under training. We ask that any members who believe they may have been underpaid or not been paid entitlements get in touch with the AFAP as soon as practicable.
For any general inquiries regarding this update or other matters at Qantas please contact the AFAP legal and industrial team of Senior Legal/ Industrial Officer Pat Larkins (
patrick@afap.org.au), Senior Industrial Officer Chris Aikens (
chris@afap.org.au), or Executive Director Simon Lutton (
simon@afap.org.au).
Regards,
AFAP Qantas Pilot Council
Michael Egan - Chair
Mark Gilmour - Vice- Chair
Daniel Kobeleff - Secretary
Michael Armessen - Committee Member