Depressed Qantas seeks retrenchments

Press, 27 October 1982, Page 23

Depressed Qantas seeks retrenchments

NZPA Sydney Workers ranging from pilots to cleaners could, be affected by the decision by Qantas to cut costs in the seriously depressed airline industry by seeking the voluntary retrenchments of" 1000 staff. The secretary of the Australian Council of Trade Unions, Mr Peter Nolan, who led talks with the 20 unions involved in the decision, said that delegates were “quietly hostile.” They did not believe the grave financial situation of Qantas was • related to manning levels and labour costs, he said. The main reason was that Australia's international flagcarrier was undercapitalised, he said. A meeting of the union delegates called on the Fed-

eral Government to inject immediately at least SA2OO million into Qantas and rationalise the total seaf capacity of other carriers to reduce the present piyA Qantas spokesman said that the offer to call for 1000 voluntary retrenchments over the next five months was made because of the worst financial year for the international airline industry in history. He said that international airlines had a combined loss last financial year of SUSI. 6 billion but this year it was expected to rise to SUSI. 9 billion. The deputy chief executive of Qantas, Mr Ron Yates, said in a statement that two big overseas airlines had already collapsed and others

had laid off staff. , Qantas had attempted to reduce costs during the past two years by the natural attrition of 1000 staff. But because of the continuing deterioration in the industry further reductions were necessary. Last year, Qantas' recorded a financial loss of $A17.3 million but its spokesmen would not predict the outcome of this year’s annual report, which has not yet been tabled in Federal Parliament. Mr Yates said that the voluntary retrenchments would be called for on a world-wide basis. Qantas employs 11,000 staff within Australia and another 1600 staff at its 34 ports of call.