Ongoing wage support for airline workers ‘not JobKeeper’

Ongoing wage support for international airline workers has triggered an emotional response from other industries struggling to cope in the absence of overseas visitors.

JobKeeper will be extended for thousands of aviation workers for another seven months. Picture: Justin Benson-Cooper

The hospitality industry has been left asking ‘what about us?’ after Qantas told its international operations employees they would continue to get a $500 a week allowance after JobKeeper ended.

The wage support will be paid to about 8600 workers at Qantas, Jetstar and Virgin Australia until international borders reopen in late October but Deputy Prime Minister Michael McCormack said the payment was not the same as JobKeeper.

Any difference was lost on restaurant and catering industry boss Wes Lambert who said many of their members were just as disadvantaged by international border closures as airline workers.

He said with 32 per cent of food services and accommodation businesses reliant on JobKeeper, the imminent end of the $1000 a fortnight allowance spelt disaster.

“The unintended consequence of ending JobKeeper for every business but the airlines means that viable businesses in the CBDs that would survive with some additional wage subsidies will fail,” Mr Lambert said.

“Until office workers return to their offices, until domestic visitors return to the CBD and international tourists and students and working holiday makers return to Australia, our members will struggle to survive without support.”

Qantas Group CEO Alan Joyce provided details of the $500 a week “direct support payment” to employees at a town-hall meeting in Sydney on Thursday.

He described the allowance as the “centrepiece” of the federal government’s $1.2bn aviation support package designed to help airlines survive until the COVID vaccine rollout is complete.

Only Australian-based employees stood down due to the lack of international flying are expected to be eligible for the payment which will continue until late October, when borders are tipped to reopen.

Qantas workers were told the trans-Tasman bubble remained on track for July and international operations should be back to full strength by November 2023.

Qantas and Jetstar have about 7500 workers from their international operations who are likely to be paid the allowance, and 1100 Virgin Australia employees may also be eligible.

Mr McCormack said like every other measure undertaken by the government during the pandemic, this one was “uniquely targeted”.

“Its sole aim is to ready our Australian aviation industry for takeoff once we can safely reopen international borders,” Mr McCormack said.

Qantas CEO Alan Joyce at the March 11 announcement in Sydney about federal government support for the aviation industry. Picture: Dylan Coker/NCANewswire

“As we saw today, the Australian economy is graduating from JobKeeper with jobs coming back in the tens of thousands and unemployment falling.”

Australian and International Pilots Association president Murray Butt welcomed the announcement of the weekly allowance as “positive news” but said there was still a lack of detail.

“It’s sort of a continuation of JobKeeper for international crew who are still stood down,” said Captain Butt.

“The majority of domestic crew are expected to be stood up by the end of March, and therefore no longer reliant on JobKeeper.”

He was of the understanding the payment would be in addition to any secondary employment international pilots had secured to help tide them through until they were stood up again.

Capt Butt said uncertainty about a return to work had limited the sort of jobs pilots could do in secondary employment, which meant financial stress was an ongoing concern.

The Flight Attendants Association of Australia was also encouraged by the $500 a week support, but raised concern about the plight of thousands of domestic workers who remained stood down without pay.

Transport Workers Union national secretary Michael Kaine said it was disappointing extra details about the aviation support package were delivered by Mr Joyce rather than the government.

“We welcome wage support for aviation workers who through no fault of their own cannot return to their jobs because of pandemic restrictions. But it is a disgrace that this wage support will help some workers while leaving others unable to pay their bills and support their families,” said Mr Kaine.

“We want to know how the federal government expects domestic workers at Qantas, Virgin

and the many aviation service operators to survive without a wage support.”

An IBISWorld report released this week named international airlines as one of the top four loss-making industries in Australia, along with buy now, pay later; cotton ginning and wired telecommunications network operations.