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Qantas can't justify 5000 sackings: Union

Qantas can't justify 5000 sackings: Union



Unions are seeking clarification on where Qantas will cut more than 2000 jobs following a two-hour meeting with the airline's top brass.

Qantas announced on Thursday that 5000 jobs will go as part of a plan to save $2 billion.

Jobs at Avalon, near Geelong, and a catering facility in Adelaide will go, but union bosses said they were uncertain where a further 2200 jobs would be slashed.

Future tense

ACTU secretary Dave Oliver told reporters he had left the meeting with more questions than when he entered, AAP reports.

"The company was not able to justify how they came up with the 5000-jobs number," he said.

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The unions want Qantas to agree to have an independent expert review the company's operation to see where cuts could be made.

Mr Oliver said the airline disagreed because it already had a number of processes under way.

"The unions aren't pushing for strike action and would rather continue consultation," Mr Oliver said.

Embattled Qantas chief Alan Joyce is meeting the union officials on Friday for crisis talks after revealing plans to axe 5000 jobs.

Related: Lessons from Qantas disaster

The airline will cut 5000 jobs, freeze wages, retire old planes, slash capital spending and cut some routes in a bid to cut $2 billion in costs over three years.

"One thing that we will suggest is agreeing to a review, where we can bring in some outside expertise to have a look at the full operation of the airline ... and see where we can get cost savings," Mr Oliver told reporters before the meeting, "We want this company to justify every job loss."

Related: Should Alan Joyce quit?

Qantas sells defence arm

In more developments, the airline has finalised the sale of its defence arm to the local subsidiary of US defence and aerospace firm Northrop Grumman.

Under the deal, Northrop Grumman Australia acquires Qantas Defence Services, a business with a turnover around $100 million last year, for a reported $80 million.

This sale was foreshadowed in August last year.

Qantas Defence Services will now be called Northrop Grumman Integrated Defence Services.

"Northrop Grumman IDS enhances our in-country footprint and local capabilities and demonstrates our commitment to the Australian and regional defence markets," Ian Irving, North Grumman Australia chief executive, said in a statement.

"We expect this to be an important platform for international growth in our key focus areas of unmanned, cyber, C4ISR, and logistics and modernisation."

Qantas Defence Services employed about 500 people with contracts to support a range of RAAF aircraft and systems. The company also leases and maintains the RAAF's two Boeing VIP transport aircraft.

Union strike action imminent?

On Thursday, Transport Workers Union national secretary Tony Sheldon called on the federal government to meet with the airline to find ways of avoiding the job cuts.

Full coverage: Flying Kangaroo's wings clipped

"But if (Treasurer) Joe Hockey's not prepared to do that, then it's industrial action that the workforce should be considering," Mr Sheldon told reporters in Sydney.

"In this country, if the government won't stand up for jobs and for the Australian icon, then we will." Read more about it here

 

(With agency inputs)