(Transcript from World News Radio)
The Australian Council of Trade Unions says the federal government has turned its back on workers and it needs to stand up and fight for jobs.
The comments came after meeting with Qantas management which wants to sack at least 5000 of its workers over the next three years to try to save $2 billion.
Greg Dyett reports.
(Click on audio tab above to listen to this item)
After a one hour meeting with Qantas management, union officials came away disappointed.
They say Qantas couldn't provide answers to critical questions such as why 5000 jobs have to go and from what areas.
They'll meet with Qantas again next week as a debate continues over the best way of keeping Qantas viable.
ACTU Secretary Dave Oliver says if the federal government is contemplating helping Qantas, it must get commitments from the airline over jobs.
"Any kind of such guarantee has to be linked to commitments around job security and ongoing employment but it's not acceptable that we've got a government in this country that wants to turn their back on tens of thousands of workers in the airline industry, we've seen it happen in the auto industry or a government that wants to blame their inaction on workers. And, you know, I think it's obscene that we've had this government out there blaming workers at Toyota, at Holden and SPC for their inaction. What the Australian community want is a Prime Minister and a government that's prepared to stand up and fight for jobs and quite frankly since Tony Abbott's been prime minister we've seen the exact opposite where they're just gladly standing there waving jobs goodbye."
Qantas head Alan Joyce is blaming the Qantas Sale Act that limits foreign ownership of the airline to 49 per cent.
He told the ABC it prevents the airline from partnering with foreign investors to the same extent as its chief competitor, Virgin Australia.
"We don't have a fair go at the moment. We have a competitor that's allowed to have foreign investment by three foreign airlines that are owned by the governments. They're losing money and they're allowed to put more money in to continue those losses. Qantas is making money domestically, Jetstar is making money domestically, but we are facing unfair competition."
Virgin Australia head John Borghetti is opposed to Qantas receiving a government debt guarantee but he doesn't have a problem with the Qantas Sale Act being amended.
Mr Borghetti says if it wasn't for Richard Branson's shake up of the Australian aviation industry more than a decade ago, Qantas would have further cemented its dominance of the Australian aviation market.
"Virgin Australia was founded, 13 years ago by a foreign, yes foreign, global entrepreneur who brought benefits to consumers. If it wasn't for foreign capital we would not be here today. Had we not started though or had a new competitor not come in Australia would be a monopoly market today and indeed some of you will say that in some sectors aviation was a virtual monopoly until only two or three years ago."
Prime Minister Tony Abbott seems cold on the idea of a debt guarantee and has seized on complaints by John Borghetti and Alan Joyce about the added burden posed by the carbon tax.
"What you do for one business you have to be prepared to do for all like businesses and that's the issue that we face with the request for a debt guarantee or a line of credit for Qantas. What we can do for all airlines is get rid of the carbon tax and I noticed that one of the other airlines, Virgin, came out this morning and said that the best thing we can do for the airline industry right now is get rid of the carbon tax and I would respectfully ask the opposition to help us to support the airline industry."
Labor and the Australian Greens are opposed to lifting the current restrictions on foreign ownership of Qantas.
And Clive Palmer says his party is also against amending the Qantas Sale Act - saying it's in the national interest for the airline to remain majority Australian-owned.
But Peter Harbison from the Centre for Aviation told the ABC it's the best option.
"The best thing the government can do really is to get out of the way and that's the real negative of the Qantas Sale Act, has against it, as it prevents Qantas from the freedom of action that say Virgin Australia has. The real point is what Virgin, Virgin Australia has now got in terms of its international and domestic operations is probably about as ideal for the current regulatory environment as you could possibly be."
Tony Sheldon from the Transport Workers Union says the federal government needs to realise it has a responsibility to Qantas.
"I'd say this to the national government, you do have a responsibility to the Australian flying public, you do have a responsibility to tens of thousands of workers, you have a responsibility to shareholders because when this company was bequeath by the Australian government to the sharemarket it was under a series of quite clear conditions under the Qantas Sale Act, Australian jobs were to be maintained, Australian jobs were to be protected and Australia was to have its national interest served and this executive board is failing to do that."
