Qantas (ASX: QAN) has been unable to reach new agreements for its employees and pilots with both the Transport Workers Union (TWU) and the Australian and International Pilots Association (AIPA) and has conceded it is time to bring in a mediator, namely Fair Work Australia.
The airline has spent the past six months in negotiations with the TWU trying to reach a new deal on pay and conditions for 3,800 employees, and an even longer 15 months with AIPA for a new deal for its 1600 long-haul pilots.
Qantas said it had made a “generous offer” to the TWU which included increases in pay and conditions, as well as protections on the jobs of existing Qantas employees, but the union rejected the offer.
According to the airline, the TWU wants Qantas to only use companies that have enterprise agreements in place with the union and to write this into a legal document, which Qantas said was breaking the law.
Meanwhile, Qantas did make some headway on a new deal for its pilots but was unable to conclude the agreement.
The airline said it will continue to explore any opportunities with the pilots’ union to reduce the number of matters that need to be arbitrated on.
Fair Work Australia has ordered the TWU and the AIPA to stop all industrial action which means they cannot take any action during the arbitration period or for the term of the determination by the commission, which can be up to four years.
AIPA has launched a legal challenge against the decision.