Qantas hoping to introduce 18-month wage freeze.
Qantas, an Australian carrier, has unveiled a plan to introduce an 18-month wage freeze in return for its employees accepting a sliding-scale profit share scheme.
Geoff Dixon, the airline's CEO, told a meeting of 100 union leaders on Monday (22 October) that if Qantas matched last year's profit of AUD550m, this would be equivalent to a lump sum payment of 3% of employees' salaries under the profit share scheme. He also said that this increment would increase to a maximum of 10% if future profit targets were achieved, according to The Sydney Morning Herald online edition.
Dixon also warned however that even if wages are frozen, some layoffs could still occur given the current downturn in the global aviation industry.
Union leaders have stated meanwhile that they would like to see more details of Qantas' plans before making a decision about accepting the wage freeze.
In other news, Dixon has welcomed a possible investigation by the Australian Competition and Consumer Commission (ACCC) into the carrier's alleged predatory pricing practices.
Qantas has been accused by unions of undercutting fares offered by Ansett Mark II after it introduced discount fares starting from AUD77 on certain routes last week. Dixon has stated that the ACCC had investigated Qantas' pricing practices before and never found them to be predatory, AAP reported.
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|Publication:||Airline Industry Information|
|Date:||Oct 23, 2001|
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