Qantas returns to wage talks after two day strike by engineers

On 29 and 30 May 2008 Qantas cancelled 18 flights after a two-day strike of over a hundred licensed engineers demanding a wage rise.
Wage talks are to be held later this week between Australian Licensed Aircraft Engineers Association (ALAEA), Qantas chief Executive Geoff Dixon and Australian Council of Trade Unions secretary Jeff Lawrence. The wage talks have been long awaited. Since the November last year, ALAEA has been pursuing a 5 per cent wage increase. Qantas said it would not budge from its policy of an annual 3 per cent wage increase. Qantas cited the rising aircraft fuel prices as the reason it could not offer more than a 3 per cent wage increase to the engineers. The airline claims AUD1.5 billion is expected in fuel bills increase next year.
ALAEA said the real wage cut would not be accepted, as the 3 per cent increase in wage offer is still below the inflation rate. Industrial actions will be escalated if Qantas continued refuse negotiation.
Earlier in the negotiation process, Qantas had infuriated union negotiators when journalists revealed that the company was trying to bring in strike-breakers. Qantas offered six-month contracts worth a massive AUD100,000 to engineers through an independent labour hire company. Qantas later denied this.
Source: Brisbane Times, 3 June 2008; The Age, 15 May 2008