Union backs Qantas pilots’ pay deal with vote expected in January

Pay deal endorsed by union puts the carrier’s plans for ultra-long-haul flights into motion.

Qantas boss Alan Joyce had previously warned he would shelve the project if a new wage agreement was not reached by the end of the year.

Christmas has come early for Qantas pilots after the airline’s latest pay deal was endorsed by the union following lengthy negotiations, effectively putting the carrier’s plans for ultra-long-haul flights into motion.

Pilots on short-haul flights have been offered a 3 per cent rise in wages and an improved rostering system after mammoth year-and-a-half long negotiations. The deal has been endorsed by the Australian and International Pilots Association (AIPA), with workers likely to vote in favour of the package in January.

Qantas said the deal falls in-line with the company's wider pay rise policy.

“The proposed agreement will go to a vote in January and is within the group wide approach to pay negotiations,” a company spokesman said.

“This demonstrates we are prepared to reach new agreements which reward our people and ensures the ongoing competitiveness of our business.”

A previous offer was voted down by employees in September after failing to gain union backing.

Confirmation of the EBA would put the airline’s ambitious plans to launch ultra-long-haul flights to and from Australia into motion.

Qantas has until March to decide whether it will order about $3bn of new Airbus stock to service the direct routes from Sydney to London and New York in 2023, which would become the world's longest commercial flights.

Qantas boss Alan Joyce had previously warned he would shelve the project if a new wage agreement was not reached by the end of the year.

The deal will have no impact on the strike action facing Jetstar through January. Despite ground crew and baggage handlers agreeing not to strike over the peak holiday travel period, the budget airline was forced to cut 10 per cent of January domestic flights after wage negotiations eroded.

Jetstar falls under the remit of an alternate union, the Australian Federation of Air Pilots (AFAP), which also represents TigerAir and Virgin Australia.

Qantas said Jetstar pilot and baggage handler’s “demands” for a 15 per cent wage rise the first year of the new EBA is “unreasonable”, as highlighted by the latest deal. However, AFAP said employees only want 3 and 4 per cent wage increases and that Jetstar has over-inflated the cost of requested conditions and allowances.

The threat of industrial action looks likely to continue into the next year. Four-hour strike action grounded several flights earlier this month.