National airline Qantas has taken the extraordinary step of grounding its entire fleet, saying that it cannot afford to continue absorbing losses of $15 million a week due to widespread industrial action.
Qantas chief executive Alan Joyce said the company would lock out all workers involved in industrial disputes with the company: The Transport Workers Union, the Australian Licensed Aircraft Engineers Association and the Australian and International Pilots Association.
This lockout will being on Monday evening, but the airline has grounded all domestic and international flights due to security concerns.
But the Federal Government has moved to stop the action by Qantas and its unions. In an emergency Fair Work Australia hearing held on Saturday night, the Government has attempted to have the tribunal terminate all industrial action by both sides.
That hearing was adjourned until 2pm on Sunday and is continuing late into Sunday night.
Regardless of the decision, the fleet will be grounded until at least midday on Monday.
Earlier on Saturday, Joyce said Qantas could no longer operate while hampered by industrial action.
“We are locking out until the unions withdraw their extreme claim and reach agreement with us,” Joyce told a press conference on Saturday.
“They are trashing our strategy and our brand. They are deliberately destabilising the company and there is no end in sight.”
Joyce said he would be forced to close down Qantas “part by part” if the industrial action continued.
Qantas is now in the processes of offering accommodation and alternative flights to passengers who have been stranded mid journey.
It will also offer refunds to passengers who have had their flights cancelled and will keep customers updated via its website, Twitter and Facebook.
The company’s budget airline, Jetstar, will continue to fly.
Virgin has said it will offer flights to Qantas passengers at special “stranded traveller” rates, where available.
The disruption has finally forced the Federal Government to intervene in the dispute. Transport Minister Anthony Albanese said on Saturday the Government would now ask Fair Work Australia to step in rule on the dispute.
“The Government is extremely concerned about the future of Qantas and its workforce but also the travelling public,” Albanese told reporters.
“The Government was informed by Qantas of their decision mid-afternoon and the government will be making an application to Fair Work Australia to determine all industrial action at Qantas.”
“This will be aimed at both actions by the unions and Qantas management.”
Business travellers will be hoping that determination comes quickly. On Monday, tens of thousands of travellers will find themselves stranded and potentially facing an uphill battle to find alternative transport.
The unions involved in the disputes have labelled Qantas’ actions as “extreme”.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
