Qantas chief executive Alan Joyce and TWU boss Tony Sheldon were personally negotiating the final elements of what looked like a deal, and sources say big hurdles on pay and conditions had been cleared, in principle at least.
Joyce told Sheldon that the demand could not be legally met under the terms of the Fair Work Act – and he maintained that the rest of Qantas’s offer would be taken off the table if the TWU did not sign off.
Mr Joyce says he is hoping the Fair Work panel will order a termination to all industrial action, saying a suspension order might not be enough to get the fleet back in the air.
Mr. Joyce said the airline’s fleet of 108 aircraft in up to 22 countries would remain grounded until Qantas reached an agreement over pay and work conditions with the unions representing pilots, mechanics and ground staff.
“Unions rightly give 72 hours’ notice before industrial action, but Qantas management has given no notice before this wildcat grounding of their fleet,” he said in a statement on the union Web site.
In Los Angeles passengers began arriving at the Qantas airport counter shortly after the FWA decision was handed down, hoping the earlier they arrived the more chance they would have of getting a flight.
He said the unions had sought a suspension of the protected industrial action for up to 120 days but the panel had decided that such a move would not provide sufficient protection against the risk of economic damage to the tourism and aviation industries.
He said termination of the industrial action would allow for further negotiations between Qantas and unions for 21 days, which could be extended for a further 21 days if progress is being made.
ACTU national secretary Jeff Lawrence said Fair Work Australia’s made it very clear in its decision that union action wasn’t actually causing significant harm to the economy.
Doubts will remain as to why Mr Joyce and his management team could not convince the company’s staff of the need for substantial change, and of the consequences of a lack of workplace flexibility.