"I can see how people may find this irksome"

These are the words of the Qantas EBA negotiator Ben De Beyer when discussing the company's below average wage offer for the next 2 years.

Sunstate workers helped contribute to a 69% increase in QantasLink's profits (2003 - 2004) for the company, producing a record $97 million profit. QantasLink was a significant contributor to the Qantas Group's record results. It is an insult to all hardworking and loyal Sunstate workers that the company has only offered a paltry wage offer of 3%, well below the Australian EBA average of 4.25%*.

This is despite the company and the Qantas Group producing record profits, the Qantas Board offering themselves a 66% pay rise (to be amongst the highest paid Board Directors in Australia) and competitor Virgin Blue giving staff 6% in 2004.

ASU members want a fair outcome

Your ASU negotiating team met with Sunstate Management on Thursday 7 October 2004. The ASU team verified the company's position on our claims (see our full bulletin in the Related Documents section at the bottom of this news item) . The ASU team want a fair and reasonable outcome in this EBA, ASU members reminded the company that our claim was 6%, not 66%!

What has been offered?

So far the company has offered very little. Increases in maternity leave and carers leave are welcomed, however the company does not want to put them into the EBA only policy. If it is not in the EBA, it is not enforceable and it may change at management's discretion.

During Qantas negotiations it was mentioned that the maternity leave policy may be offset against any government schemes that are introduced. At the moment the carers leave policy will only become available on your anniversary date with the company not the finalisation of the EBA. Which means some staff will wait up to a year before they can access the leave. We want this fixed.

What can be achieved?

The company has rejected our claims for a clear and transparent classification structure. A proper structure should always include level descriptors to ensure jobs are correctly classified, it should include yearly increments to recognise your service and contribution to the company, and it MUST contain actual rates of pay. Minimum rates will enable the company to employ new staff on significantly lower rates of pay than what is currently offered. This varies from $5 000 - $15 000 on the company's current proposal.

A fair wage offer has yet to be provided by the company. The 3% offer is below the Australian standard and if agreed to for 2 years will reduce your real wage by at least 2% when compared to the rest of the community. The company has also rejected our superannuation claim of 1% p.a. The company currently pays all new staff from July 2003 the Australian minimum of 9% p.a. Experts highlight that you need at least a 14% - 15% employer contribution for the whole of your career to provide a modest retirement income.

What will our claims cost?

It is important to realise that our claims will have minimal/negligible cost impact on the company, however will provide an extremely positive impact on the living standards for you and your families. The company is the most successful it has ever been, why can't it offer a fair wage offer now?

For each 1% increase in our wage or superannuation claim, it will cost QantasLink less than $30,000. The profit result in 2004 was 97 million dollars. This is approx. 0.0003%.

What happens now?

You can expect the company to ask you to accept their offer to help Sunstate to "remain competitive". But remember, our claims are fair, reasonable and will have a very minimal cost impact on the company, which is performing extremely well.

No further EBA meeting dates have been organised with the company. They have no further comment and have rejected almost all of our claims. We need to decide if the current offer is acceptable.

ASU Meetings will be held over the next few weeks. It is important that you attend and that you strongly encourage your workmates to attend as well. We need to send the company a clear message that our hard work must be rewarded properly. We need to be united in our attempts to achieve a fair outcome.

Related Documents: