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http://www.news.com.au/business/story/0,23636,24039004-462,00.html
WORRIED Qantas and Jetstar workers are waiting to hear exactly where the job axe will fall after the carrier said today it would dump 1500 staff and scrap plans to take on another 1200 workers.
The Australian Services Union (ASU), which represents workers across various Qantas divisions, said its members were anxious to find out if they would be forced out.
ASU assistant national secretary Linda White said she spoke with Qantas officials shortly after the announcement was made, but "as it stands now, I can’t give any comfort to our members. Everyone thinks they’re under the gun.”
But chief executive Geoff Dixon has said workers should not find it hard to find other jobs. He said Qantas employees were "some of the most skilled in Australia", and he was confident that they would find other employment, particularly as the national economy was "still quite strong".
Ms White said that was cold comfort for staff today. "I think Geoff Dixon is extremely presumptuous… that’s not going to console anyone," she said.
Meanwhile, one Jetstar worker, Carrie, has written to NEWS.com.au's live blog to say her job was definitely one of those to be cut. "My fellow colleagues are in complete shock," she said.
A Qantas worker, James, has said morale among staff is at rock bottom. Another, Nathan, has said people in his office immediately started trying to tally up how much of a payout the company might give them.
See how they coped with the news by replaying our live blog. (Blog window will pop up.)
The ASU's Ms White said Qantas had emailed staff a short memo about the cuts, but: “There are areas (in Qantas) that are already under significant strain because of understaffing.”
The email said: “This will be a stressful period for many and every effort will be made to handle all issues with consideration and care. Communication with each business segment will commence next week.
Qantas blamed skyrocketing fuel costs as it announced the job losses this morning. A freeze on executive pay would also continue, and it would retire 22 older aircraft from its fleet of 228, it said.
Mr Dixon said the aviation industry was facing a major crisis and Qantas needed to ensure its future.
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"The jobs to be cut will be principally concentrated in non-operational areas, although operational positions will also go," he said in Sydney. "Over 20 per cent of our management and head office support jobs will be cut."
Mr Dixon said there would be compulsory redundancies, as well as voluntary redundancies, early retirements, leave without pay, an accelerated leave program and full time jobs moved to part-time.
"Some compulsory redundancies will be necessary, which we regret," he said. "The redundancy program will be completed by December."
Is your job on the line? Do you know more? Email us at news@news.com.au with reports, tip-offs, and pictures or SMS to 0429 300 245
Mr Dixon said most of the 1500 jobs lost would be in Australia, with 150 or 200 from the airline's overseas operations.
He also flagged his own departure from the airline next year, perhaps at the half year results announcement. "But that's up to the board, not me," he added.
Qantas said nearly 100 jobs would be lost with the closure of call centres in Tucson and London and call centre activity would be concentrated in Australia and New Zealand, the company said.
It would also close its Jetstar cabin crew base in Adelaide in August and suspend its Jetstar recruitment program until the end of the year.
The moves were revealed as the company said it had cut its expected capacity growth forecast from 8 per cent to zero.
Qantas joins airlines worldwide struggling to control fuel costs spiralling out of control with the jump in crude oil prices in recent months. Qantas shares rose marginally today, up one cent to $3.31 at 12.21pm (AEST).
"Acting now, on top of the measures already taken, will protect our competitive position, protect the great majority of over 36,000 jobs and enable us to grow profitably when conditions improve," Mr Dixon said.
Fuel accounts for about 35 per cent of the airline's expenses - a cost set to increase by more than $2 billion in 2008/09.
Crude oil, from which jet fuel is derived, has been trading about $US140 a barrel recently, but overnight it subsided to around $US130, amid concerns about a slowing US economy.
Mr Dixon said Qantas was very conscious of the important role it played in business and tourism in Australia. "And, as a result, the latest schedule changes mostly involve a reduction of capacity on some routes and not the wholesale elimination of routes."
The airline will go ahead with a major fleet re-equipment program of new and more fuel-efficient aircraft such as the A380 and B787.
WORRIED Qantas and Jetstar workers are waiting to hear exactly where the job axe will fall after the carrier said today it would dump 1500 staff and scrap plans to take on another 1200 workers.
The Australian Services Union (ASU), which represents workers across various Qantas divisions, said its members were anxious to find out if they would be forced out.
ASU assistant national secretary Linda White said she spoke with Qantas officials shortly after the announcement was made, but "as it stands now, I can’t give any comfort to our members. Everyone thinks they’re under the gun.”
But chief executive Geoff Dixon has said workers should not find it hard to find other jobs. He said Qantas employees were "some of the most skilled in Australia", and he was confident that they would find other employment, particularly as the national economy was "still quite strong".
Ms White said that was cold comfort for staff today. "I think Geoff Dixon is extremely presumptuous… that’s not going to console anyone," she said.
Meanwhile, one Jetstar worker, Carrie, has written to NEWS.com.au's live blog to say her job was definitely one of those to be cut. "My fellow colleagues are in complete shock," she said.
A Qantas worker, James, has said morale among staff is at rock bottom. Another, Nathan, has said people in his office immediately started trying to tally up how much of a payout the company might give them.
See how they coped with the news by replaying our live blog. (Blog window will pop up.)
The ASU's Ms White said Qantas had emailed staff a short memo about the cuts, but: “There are areas (in Qantas) that are already under significant strain because of understaffing.”
The email said: “This will be a stressful period for many and every effort will be made to handle all issues with consideration and care. Communication with each business segment will commence next week.
Qantas blamed skyrocketing fuel costs as it announced the job losses this morning. A freeze on executive pay would also continue, and it would retire 22 older aircraft from its fleet of 228, it said.
Mr Dixon said the aviation industry was facing a major crisis and Qantas needed to ensure its future.
"The jobs to be cut will be principally concentrated in non-operational areas, although operational positions will also go," he said in Sydney. "Over 20 per cent of our management and head office support jobs will be cut."
Mr Dixon said there would be compulsory redundancies, as well as voluntary redundancies, early retirements, leave without pay, an accelerated leave program and full time jobs moved to part-time.
"Some compulsory redundancies will be necessary, which we regret," he said. "The redundancy program will be completed by December."
Is your job on the line? Do you know more? Email us at news@news.com.au with reports, tip-offs, and pictures or SMS to 0429 300 245
Mr Dixon said most of the 1500 jobs lost would be in Australia, with 150 or 200 from the airline's overseas operations.
He also flagged his own departure from the airline next year, perhaps at the half year results announcement. "But that's up to the board, not me," he added.
Qantas said nearly 100 jobs would be lost with the closure of call centres in Tucson and London and call centre activity would be concentrated in Australia and New Zealand, the company said.
It would also close its Jetstar cabin crew base in Adelaide in August and suspend its Jetstar recruitment program until the end of the year.
The moves were revealed as the company said it had cut its expected capacity growth forecast from 8 per cent to zero.
Qantas joins airlines worldwide struggling to control fuel costs spiralling out of control with the jump in crude oil prices in recent months. Qantas shares rose marginally today, up one cent to $3.31 at 12.21pm (AEST).
"Acting now, on top of the measures already taken, will protect our competitive position, protect the great majority of over 36,000 jobs and enable us to grow profitably when conditions improve," Mr Dixon said.
Fuel accounts for about 35 per cent of the airline's expenses - a cost set to increase by more than $2 billion in 2008/09.
Crude oil, from which jet fuel is derived, has been trading about $US140 a barrel recently, but overnight it subsided to around $US130, amid concerns about a slowing US economy.
Mr Dixon said Qantas was very conscious of the important role it played in business and tourism in Australia. "And, as a result, the latest schedule changes mostly involve a reduction of capacity on some routes and not the wholesale elimination of routes."
The airline will go ahead with a major fleet re-equipment program of new and more fuel-efficient aircraft such as the A380 and B787.
