Qantas pay freeze has silver lining, with extra leave conditions

More than 4000 Qantas employees have won extra paid parental leave and domestic violence leave under a new deal.

‘One of the greatest things I’ve heard’: Qantas business analyst Angie Agarwal. Picture: John Feder

More than 4000 Qantas employees have won extra paid parental leave and domestic violence leave under an agreement that offsets the impact of an 18-month pay freeze with two one-off pay bonuses.

Under a new clause to be rolled out across the rest of the Qantas workforce later this year, paid parental leave received by ground staff will increase from 12 to 14 weeks, with employees able to use the extra two weeks as leave or have an equivalent amount put into their superannuation.

The four-year deal, hailed as “groundbreaking” by the Australian Services Union, provides for 10 days’ paid leave where employees are experiencing domestic or family violence. The entitlement will also be available to all Qantas workers later this year.

The ASU agreement is the 34th reached by Qantas to include an 18-month pay freeze, with 15,800 workers now subject to the wage pause.

After the deal is approved by the Fair Work Commission, ASU members will receive a one-off 5 per cent bonus and a $3000 ­“record result” bonus for full-time employees. Part-timers will get $2500.

Once the pay freeze ends, workers will receive a 1.5 per cent pay rise in January 2018 and a 3 per cent increase in July 2018.

A further 3 per cent rise will apply from July 2019

Qantas said the airline was glad to reach an “agreement that ­rewards employees while also ensuring the long-term competitive strength of the business”.

Qantas business analyst Angie Agarwal, who has one child and is “planning to have more”, welcomed the deal, particularly the increase in paid parental leave.

‘’We can opt to either have it paid into our super or elect (to take it as leave),’’ the 36-year-old said.

“I think that’s amazing, one of the greatest things I’ve heard, because not many employers out there have offered their staff members that.’’

Ingrid Stitt, the ASU’s Victor­ian branch secretary, said it was significant such a large ­private-sector employer had agreed to 10 days’ domestic violence leave.

About 66 per cent of staff covered by the deal is female. “New domestic violence leave means employees can take the time to reset their lives when they are at their most vulnerable,’’ Ms Stitt said. “When workers, mostly women, are at the most turbulent time of their lives, the last thing they need to worry about is their job or entitlements.’

Ms Stitt said that based on modelling by Qantas, if employees took the extra two-week parental leave as superannuation, it would put an extra $46,000 into their ­retirement savings.

“This is a big win for primary carers, who are predominantly women,” she said. “For workers who do take the extra two weeks as leave, it is potentially 14 weeks of parental leave on top of the ­government scheme.

“Our members worked tirelessly when things were tough for the airline and were key to delivering a record profit. We’re pleased that Qantas … has been prepared to reach agreement on innovative and progressive outcomes.”