Qantas Airways Ltd, Australia's biggest airline, is preparing a plan to minimize flight disruptions in the face of any action by 1,700 of its engineers seeking bigger raises and an improvement in working conditions.
"We are pursuing a variety of contingency arrangements to ensure our passengers can travel and book with confidence in January," Kevin Brown, head of human resources at the Sydney-based carrier, said in a telephone interview yesterday.
To combat the planned industrial action, Qantas is trying to recruit engineers in New Zealand and hire 400 others made redundant last year, the Sydney Morning Herald reported yesterday.
Any action by Qantas' workers would coincide with an improvement in performance. The carrier earlier this month predicted record profit after flying more domestic passengers.
The company's shares have gained 5 percent since the beginning of the year, compared with a 0.4 percent decline for Singapore Airlines Ltd in the same period. They rose A$0.07, or 1.3 percent, to A$5.48 at the close on the Australian Stock Exchange, their first gain since Dec. 13.
Qantas engineers have agreed to introduce a ban on overtime work after negotiations over pay and working conditions collapsed following 13 months of discussions. The Australian Licensed Aircraft Engineers Association wants a 5 percent annual pay increase; Qantas has offered 3 percent.
Data show Qantas employees outperformed their counterparts at Singapore Airlines, Asia's most profitable carrier. Qantas' sales per employee exceeded Singapore Airlines' by almost 10 percent in US dollar terms for the most recent 12 months, according to data compiled by Bloomberg.
Former engineers and their New Zealand counterparts have contacted the union after being offered work, union spokesman Steve Re said in an interview, adding Qantas is set to resume talks on Friday next week.
Workers will ban overtime beginning on Jan. 9 and will stop all work should Qantas intervene, Re said.
Qantas, the target of a failed buyout bid, has carried 7.1 percent more passengers this fiscal year on higher demand at its domestic and Jetstar low-fare units.
A six-month national dispute in 1989 saw the Australian Federation of Air Pilots impose a limitation to working hours from 9am to 5pm during a campaign for a 29 percent pay rise.
The Royal Australian Air Force stepped in to keep domestic air running smoothly.
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