- Local positions at Qantas Airways (QAN) continue to disappear as the airline announces plans to outsource 2500 jobs
- Outsourced hires will carry out future groundwork across major domestic and regional airports
- This adds to an existing 6000 redundancies which have been made since the COVID-19 pandemic rattled the aviation industry
- Qantas management claims the manoeuvre will save $100 million per year to help soften a $2 billion loss in its latest full-year report
- These redundancies continue to grow, despite the airline receiving $267 million from the Federal Government’s JobKeeper scheme
- Shares in the ASX-200 company gained 2.95 per cent over Tuesday trade — closing at $3.84 apiece
The number of domestic jobs at Qantas Airways (QAN) continues to disappear as the airline announces 2500 jobs are to be outsourced.
The Australian airline announced the plan on Tuesday this week, signalling a major disappearance of homegrown jobs across domestic airports and several regional locations.
This decision increases the number of recent redundancies for Aussie workers at Qantas, adding to a rough total of now 8500.
Qantas is expecting to save up to $100 million per year from the decision. The latest job cuts means the airline will outsource its ground handling, including aircraft cleaning and baggage work.
Recently, Qantas revealed a $2 billion loss in the company’s portfolio for the full-year report — a figure obviously affected by the COVID-19 pandemic.
“Further significant losses are projected in the 2021 financial year, and an at least $10 billion drop in revenue due to the ongoing impact of COVID,” a Qantas statement this week read.
As part of the Federal Government’s JobKeeper initiative, Qantas received $267 million to help retain its workforce, despite the numerous cuts.
The outsourcing of ground handling jobs will begin to take effect over the rest of 2020.
“Airlines have to change how they operate to ensure they can survive long-term,” Qantas Domestic Chief Executive, Andrew David, said on Tuesday.
“Today’s announcement will be very tough for our hard-working teams, most of whom have already been stood down for months without work,” he continued.
“This obviously adds to the uncertainty, but this is the unfortunate reality of what COVID-19 has done to our industry,” Andrew stated.
Budget Qantas subsidiary, Jetstar, is already a step ahead. The smaller airline is currently in the process of outsourcing jobs at domestic spots across Australia.
This process will likely see 370 local jobs lost.
Transport Workers Union speaks out
Transport Workers Union National Secretary, Michael Kaine, spared no expense at calling out Qantas’ behaviour.
The union representative felt that the airline was acting against the spirit of the JobKeeper scheme, calling for the millions-of-dollars to be invested into the workforce and save jobs.
“[Qantas Chief Alan Joyce] has abused that system today and he has abused the trust of the Australian people,” he said.
“Mr Joyce should resign,” Michael continued.
Not only did Michael Kaine take aim at the Qantas’ Chief, he also urged Prime Minister Scott Morrison to take action.
“The social contract that was put in place by Scott Morrison was for employers to maintain their workforces through until the virus had passed,” he added. “That was the social contract”.
“The Prime Minister has failed to date to implement a national plan on aviation. He must act now to urgently save jobs and ensure a return for the public,” he continued.
Shares in the top-200 company gained 2.95 per cent over Tuesday trade — closing at $3.84 apiece.