Jetstar strike: More flights cancelled in January as budget airline’s workers strike
Thousands of Australians’ holiday plans are under threat after Jetstar revealed it would cut flights in January while a bitter industrial pay dispute continues.
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Jetstar has stared down the threat of further strikes by its pilots and ground staff by cancelling hundreds of flights scheduled for January as both sides of the industrial dispute refuse to back down.
The budget airline has confirmed it will cut 10 per cent of its January flights to combat what it has estimated will be $20 to $25 million in losses from industrial action by its staff over the summer period.
News Corp understands more than 800 flights could be impacted.
Affected customers will be contacted by Jetstar in the next 48 hours and offered either a rescheduled flight or full refund.
It comes after more than 100 domestic flights were cancelled on the weekend as Jetstar pilots went on strike.
The airline, which employs 830 pilots and 375 ground crew in Australia is expected to suffer financially with a $30 million loss by the end of January.
It stated it would use third party suppliers for tasks such as loading bags and operating tugs as workers belonging to the Transport Workers Union continue to strike.
It also said some contingency plans exist as the Australian Federation of Air Pilots (AFAP) continue to strike, such as consolidating flights and transferring passengers on to other airlines (including Qantas) where feasible.
“Doing this well in advance will significantly reduce disruption compared to the three to five working days notice the union is required to give of any industrial action,” the statement read.
“Customers already booked on these flights will be contacted in coming days to be offered alternatives, including full refunds.”
But the AFAP has indicated it does not intend to take action between December 20 and January 3 2020.
Jetstar has also announced it is developing a business case to sell three 787-8 aircraft that serve international routes after a review of its fleet found the planes were “loss making and marginal”.
The airline confirmed a final decision about the three planes was expected to be made by March 2020.
The sale could impact passengers planning to fly to destinations such as Honolulu and parts of South East Asia.
Jetstar CEO Gareth Evans said industrial action doesn’t change the fact the wage claims being made by the TWU and AFAP are unsustainable.
“In the case of the pilots, the union is asking for what amounts to a 15 per cent wage increase in the first year in a group where captains earn more than $300,000 a year.
Jetstar workers begin 2-hour strikes around the country this morning following a rejection of all their claims, such as more rest breaks & 12-hour breaks between shifts || @SBSNews pic.twitter.com/JerV8LO6mZ
— Charlotte Lam (@lottie_lam) December 12, 2019
“For some groups, their salaries would increase by $60,000. We can’t agree to that.
“The TWU’s claims equate to a 12 per cent increase in costs for Jetstar ground crew who earn around $70,000 per year on a part time basis and around $90,000 per year on a full time basis. This is despite the same union agreeing to a three per cent wages deal in other parts of the Qantas Group.
“There’s no doubt that industrial action is expensive and frustrating, but we have to hold the line on costs or it threatens the long term sustainability of our business. We apologise to the customers whose plans have been caught up in what the unions are doing.”
More than 100 domestic flights nationwide were cancelled on Saturday and Sunday, with pilots going on strike as part of an escalating dispute about pay and safety conditions.
Passengers have been warned further industrial action by members of the Australian Federation of Air Pilots (AFAP) – which includes 80 per cent of Jetstar’s 800 pilots – could impact their travel plans between now and December 20.
The Transport Workers Union, which represents these staff, has asked for annual wage increase of four per cent, more rest breaks, a guaranteed 12-hour break between shifts and minimum 30 hour working weeks.
TWU officials have claimed ground crew workers, who earn an average of $70,000 a year, are struggling to cover living costs because they aren’t guaranteed a set amount of hours each week.
Both unions started negotiating new employment agreements with Jetstar about six months ago, but talks have broken down so badly Christmas travellers are being impacted.
JETSTAR: STRIKES ‘CYNICALLY TIMES TO HURT TRAVELLERS’
A similar strike on Saturday caused the proactive cancellation of more than 40 flights.
The pilots’ action comes after baggage handlers and ground staff stopped work on Friday at Sydney Airport, Melbourne’s Tullamarine and Avalon airports, and in Brisbane, Cairns and Adelaide.
Staff are striking in protest over pay and health and safety concerns they say the airline has not addressed.
This Friday Jetstar baggage handlers and ramp workers will hold two 2-hour work stoppages. Their fight is about making their jobs safe and fair and ending the struggles their families face. More: https://t.co/R5LEXUm3iH pic.twitter.com/9TXV0fXGgS
— TWU Australia (@TWUAus) December 9, 2019
Jetstar said the strikes are “cynically timed to hurt travellers at the busiest time of the year”.
Workers who walked off the job on Friday have pledged to do it again next Thursday should their demands not be met.
The company says customers travelling from December 13 to December 20 can request a full refund prior to flying.
At Melbourne Airport on Saturday, some Jetstar passengers were still hopeful their flights would not be impacted.
Passenger Jordan Grice’s flight from Melbourne to Sydney was one of cancellations under the strike.
Mr Grice, from Southern Highlands in New South Wales, said the issue had made him think twice about booking Jetstar again.
“This is classic Jetstar, it happens all the time,” Mr Grice told the Herald Sun.
“I’m going with Virgin back here. It’s more expensive but it’s worth it.
“We already postponed our Christmas lunch to dinner because of this flight and now we don’t even known if we’ll make it, but what can you do.”
Jetstar said the disruption had not badly affected flights on Friday because they had minimised fallout by cancelling 30 services in advance.
Workers who walked off the pledged to do it again next Thursday should their demands not be met.
Transport Workers Union national secretary Michael Kaine said the airline needed to explain why it had rejected the “modest” requests.
“Jetstar won’t listen when these workers say to them that they simply can’t survive on 20 hours of work a week … when they make sure Jetstar knows they are on the lowest pay in the industry,” Mr Kaine said.
“They are finding it harder and harder to support their families, and Jetstar won’t listen when these workers repeatedly say that their jobs are not safe because there are too few workers lugging around thousands and thousands of kilos of baggage and having to service overlapping aircraft.”
Jetstar updates on the strike action can be found here.