Job loss fear surrounds Qantas merger

3 Dec 2008, 9:04 am   -   Source: AAP
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Talks between Qantas and British Airways over a possible merger have sparked debate over possible job losses.

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Talks between Qantas and British Airways over a possible merger have sparked debate over possible job losses.

Transport Workers 'Union secretary Tony Sheldon has called for "transparency" in negotiating the possible merger, which he fears could affect the employment conditions of 38,000 Australian workers.
   
"The announcement regarding the potential merger between BA and Qantas raises a whole series of important questions for both the government and also 38,000 working families that make Qantas the most profitable airline in the world," Mr Sheldon told reporters on
Wednesday.

"What's critically important is about issues of job security for those families and to make sure the national icon does remain in control, in all senses of the word, in Australian hands.

"It's critically important with this situation we are now in, with the financial markets being at such a delicate stage internationally, that the new arrangements that have been proposed don't put the new entity into substantial debt," Mr Sheldon said.
   
"Debt is really the quagmire for the world economy at the moment and we want to make sure that BA and Qantas won't fall into that same trap."
   
The TWU will seek urgent talks with both airlines as well as its UK counterpart, the Transport and General Workers Union, to discuss the protection of Australian jobs.

"There needs to be a transparent community interest test put into this bid and if it's appropriate, and it stacks up, there is a strong argument for it to go ahead," Mr Sheldon said.

"But at this point it's not transparent, there's no detail made clear to make that assessment, shareholders and, most importantly, 38,000 working Australians or the government who can say `This is in our national interest.'"

 

Government after 'national interest'

 

The federal government says any merger between Qantas and British Airways would have to be in the national interest.

Federal Treasurer Wayne Swan says Qantas will remain in majority Australia ownership even if it merges with British Airways.
  
The news came as the federal government indicated it was considering lifting from 35 per cent to 49 per cent the holding foreign airlines can have in Qantas.

But it won't budge on a requirement that insists the airline be 51 per cent locally-owned.
   
"Our bottom line is that Qantas remains in majority Australian ownership," Mr Swan told ABC Radio.

Foreign Affairs Minister Stephen Smith says the merger with British Airways may ensure the Australian airline remains competitive,
   
 "The airline industry is a very tough industry," Mr Smith told ABC Radio.

Consolidation, through mergers or partnerships had kept some airlines in business.

Qantas was a competitive, world-class airline, Mr Smith said.

"But like a lot of airlines in recent times it's ... been through tough times, so it's no surprise that it may be looking for a partnership."


Deputy Prime Minister Julia Gillard says the government will ensure any deal is made in the national interest.
   
We would work through a process ... everything we do is about protecting Australian jobs," she told ABC Radio.

 

Opposition need convincing

 

However the federal opposition is yet to be convinced about plans to allow foreign airlines a bigger stake in Australian carriers.
 
Opposition transport spokesman WarrenTruss wants the government to explain why the move would benefit Australia.

Mr Truss said British Airways once had a significant shareholding in Qantas and that did not
work.

"In the end BA sold down that shareholding in the interest of both airlines," he told ABC Radio.
   
"We'd need to know why this deal was better than the arrangement that was proposed previously, and most importantly why it's better for Australia."

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