Qantas strike looms as more than 400 engineers set to stop work on Friday

With the airline’s AGM on Friday, CEO Vanessa Hudson will have to prove her balancing skills as more than 400 engineers prepare to strike, amid calls for a pay rise following record profit.

Qantas engineers are set to walk off the job. Picture: Gaye Gerard/NewsWire

More than 400 Qantas engineers will stop work on Friday in a move timed to disrupt the airline’s annual general meeting in Hobart as they fight for higher pay and better working conditions.

Qantas said the strike action would not impact passengers.

National Secretary of the Australian Manufacturing Workers Union, Steve Murphy, says there will be two sets of four hour stop works in Sydney, Brisbane, Hobart and Perth for engineers that conduct pre-flight safety checks, ground support, planners and flight simulators.

The move comes as Qantas short-haul pilots have just rejected a 26 per cent pay rise offer from the airline, and just two months after it agreed a similar sized pay hike for long and short haul flight attendants.

Mr Murphy confirmed informal conversations had been taking place between some of the 14 unions with workers at Qantas to see whether a whole-of-airline approach should be taken.

“There has been informal discussions saying we should,” said Mr Murphy, adding that so far they had not included the two pilots unions in the discussions.

Qantas chief executive Vanessa Hudson faces a difficult challenge. She has inherited an airline that was the most complained about company for two years in a row, but also just produced its two highest ever profits.

The company’s share price hit a record high on Thursday, and its market capitalisation has risen to a 17-year high of $12.37bn on the back of its dominance of the domestic market and ongoing strength in demand for international flights.

The airline is pouring money into improving customer service, spending $230m this year and last after dramatic failures after pandemic lockdowns ended. as a result, its Reptrak brand reputation score has improved 12 points from last September to this July and its on-time performance has risen.

 But relations with staff remain a problem.

Qantas Airbus A330. Picture: Supplied

Back in 2011 former chief executive Alan Joyce took the shocking decision to ground the entire Qantas fleet rather than bow to growing demands from baggage handlers, pilots and engineers.

That move inconvenienced 80,000 customers, but ultimately ended in the airline cutting a better deal with each union than had previously been on the table.

A Qantas spokesperson said that it was “not aware” the unions were currently considering a whole of airline approach, and added that it is unlawful under the Fair Work Act to take industrial action while an enterprise agreement has not passed its expiry date. There are “only a small number” of open enterprise bargaining agreements at the moment.

The airline also disputed the number of workers that would be striking on Friday, saying there were only 400 on shift, rather than the 600 suggested by the union.

“We are aware of the action being taken on Friday,” said the spokesperson. “We don’t anticipate there will be any impact to customers. We had a number of meetings with the unions prior to the industrial action. We want to continue to engage with them to find a way forward, but they have chosen to take action. Our preference is to reach an agreement that includes pay rises and other training and career progression benefits.”

In this current industrial action by the engineers, the unions involved are the AMWU; the Australian Workers Union; and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia.

This group is known as the Qantas Engineers Alliance and comprises three of the 14 unions that operate within Australia’s biggest airline.

Qantas engineers play a key role in the airline’s exceptional safety record.

Qantas said the engineers are seeking 45 per cent pay rise over the course of their three-year enterprise bargaining agreement after their wages were almost frozen over the previous four years. The airline said it has offered them 26 per cent.

Qantas CEO Vanessa Hudson at the International Air Transport Association forum in Dubai. Picture: Natalia Mroz/IATA

Under Mr Joyce, Qantas illegally fired 1700 baggage handlers, and this week the airline found out it may have to pay up to $100m in fines.

Earlier in the year, Qantas also agreed to pay $120m to settle a dispute with the competition regulator over selling airfares on flights that it had already cancelled.

Ms Hudson will need to work hard to erase the damage caused by these legacy issues.

Qantas shares hit a record high of $7.96 on the ASX on Thursday, before losing some ground to close 1.2 per cent higher at $7.91.

Originally published as Qantas strike looms as more than 400 engineers set to stop work on Friday