Money

Qantas loses ground crew outsourcing challenge

Published

2 years ago

July 30, 2021

Qantas has lost a major court battle against the Transport Workers Union

The Federal Court has largely found in favour of the Transport Workers Union (TWU) against Qantas in a case challenging the outsourcing of about 2,000 ground crew jobs by the airline.

Justice Michael Lee was not convinced by evidence from Qantas and some of its senior executives that its decision to outsource the jobs was not motivated at least in part by the fact many were union members.

It is not clear yet what effect the decision will have on the workers whose jobs were outsourced.

In late November 2020, Qantas said its restructuring of ground handling operations, which included baggage handlers, push-back drivers, ramp workers, and aircraft cleaners, would see 2,000 jobs outsourced.

Qantas argued doing so would see the airline save US$74 million annually.

The airline also said it would also avoid large capital spending on equipment such as aircraft tugs and baggage loaders, and better match the costs of ground handling with fluctuating demand.

Qantas went on to award contracts to Swissport and Menzies Aviation, after a bid by the TWU on behalf of employees was unsuccessful to keep them in their jobs.

In a statement, Qantas said it plans to appeal the Federal Court ruling.

“Qantas intends to appeal the Federal Court’s judgement that it contravened the Fair Work Act in outsourcing the remainder of its ground handling function.”

Qantas listed three “clear reasons” for its decision to transiton to contracted workers, and listed those reasons in its statement.
- Using specialised companies could save Qantas up to $100 million a year – savings it desperately needed to unlock as part of its recovery from COVID.
- It would also remove the need for Qantas to spend $80 million over five years on necessary ground handling equipment like tugs and baggage loaders.
- Outsourcing would allow resources to be better matched with fluctuating levels of demand, especially when the same workforce is providing services to scores of airlines at the same airport. The need for this variability has been shown again by the latest set of lockdowns.

Today’s judgment does not mean Qantas is required to reinstate workers or pay compensation or penalties

These matters have not yet been considered by the Court and Qantas will oppose any such orders.

Qantas will also seek to have its appeal heard as soon as possible and before any remedy hearing, the airline said.

Money

Real reason bosses want employers back in the office

Published

16 hours ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

16 hours ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured

Money

Australian inflation figure finally starts with a 4

Published

16 hours ago

November 30, 2023

ticker NEWS

Australia’s October inflation figures have surprised economists, as consumer prices rose at a slower pace than anticipated.

This slowdown was primarily attributed to a significant drop in goods prices, contributing to the nation’s subdued economic climate.

The Consumer Price Index (CPI) for October indicated a modest 0.4% increase, falling short of the 0.7% forecasted by analysts. On an annual basis, inflation stood at 2.1%, below the Reserve Bank of Australia’s target range of 2-3%. This unexpected deceleration is likely to affect the country’s monetary policy decisions in the near future.

Goods prices, including essential items like fuel and food, recorded a notable decrease of 0.8%, mainly due to supply chain disruptions and global economic uncertainties. Meanwhile, services prices continued to rise, albeit at a slower rate, driven by higher wages in some sectors.

This unexpected dip in inflation raises questions about the overall health of the Australian economy and the central bank’s strategies to combat it. Policymakers now face the challenge of balancing economic growth with the need to manage inflation effectively. #ticker today #featured