Qantas Dispute Critical Thinking Example

1. Why Unions started the industrial action
Unions represent and lobby for better rights, wages and benefits for the workers. In this Qantas case, the unions jointly represented engineers, pilots, ground staff, and baggage handlers who wanted a pay rise. The Unions started an industrial action because they felt that the workers did not get the pay they deserved. Firstly, other pilots in other companies were being paid highly as compared to the pilots that worked at Qantas. For instance, in every 28 days Virgin pilots were paid 18 hours more than their counterparts were at Qantas. Secondly, Qantas pilots took fewer leave days as compared to other pilots in other airline companies. For instance, Virgin pilots enjoyed 33 more leave days every year than Qantas pilots did.
Moreover, the Union felt the conditions for the pilots flying Jester were not the same as for those flying long-haul Qantas international routes. They wanted 2.5 per cent pay rise for the pilots every year for the next three years as their counterparts. Besides, they wanted the pilots to be given free international economy tickets each year. Furthermore, they wanted the company to fund two full-time union officials up to the cost of one million dollars per year.
In addition, the Union felt the pay rise for engineers and ground staff did not match inflation. Moreover, they felt that the workers were being offered less for the services they offered. Besides, the unions wanted the workers to be assured of job security as their counterparts in Virgin were. Ultimately, the engineers wanted to stick to the past maintenance regimes while the company wanted them to superior maintenance regimes.
2. Was industrial action the right way to go? Should pilots go on strike?
The industrial action was not the right way to go. The pilots could have presented their disputes to the management, and then they agree on the way forward together. The pilots could have resorted to other means of resolving the dispute they had with the management. Management was willing to offer the workers the pay rise that they were demanding. However, the company had long-term goals, and the global environment was very competitive. Besides, payment of the pilots was above the minimum guaranteed hours. In addition, the company already offered career advancement for its pilots.
Moreover, industrial action caused more harm than good to the company. The company experienced losses due to the industrial action. Moreover, it resulted to passengers being stranded. Besides, it damaged the reputation of the company.
Pilots should not go for a strike. They should resolve their differences with the management using other alternative methods. Pilot’s strike may inconvenience the passengers that have already booked at the airline. Moreover, it will tarnish the reputation of the company.
3. Was Qantas right to shut the airline down?
Qantas was right to shut the airline down since the strike affected greatly its operations. Approximately 80,000 passengers were affected; 600 flights cancelled, and seven aircraft grounded. Besides, their rivals, Virgin Australia, had put on extra services.
Furthermore, the company had incurred about $70 million in damages due to the pay dispute. In addition, it incurred $20 million a day due to the grounding of the entire fleet. Moreover, pilots on international routes were passing unauthorized announcements to the passengers, who aired their grievances. In addition, the company experienced rolling strikes from engineers, which delayed passengers.
Moreover, the company was paying the pilots 30 percent more as compared to the Virgin pilots. For instance, an average Boeing 747 captain earned $350,000 per year. In addition, they received six weeks annual leave plus 25 sick leave days per year. Besides, they enjoyed discounted staff travel.
In conclusion, Qantas was justified to shut the airline down. This is because its operations had been greatly affected by the strike. Moreover, its passengers were greatly affected by the industrial action. Ultimately, the strike had tarnished the reputation of the company.
4. What harm did it do to the Qantas brand?
The strike tarnished the Qantas brand since it affected approximately 68,000 passengers. Due to the strike, passengers opted for other airlines that were peaceful. Qantas became unreliable since it left many passengers stranded. Moreover, pilots on international flights tarnished the reputation of the company by telling the passengers their dispute with the management. The actions of the pilots made the company undesirable for the passengers.
5. What was the part of the Government – should they have interceded/supported?
The federal government should have interceded because the industrial action affected the economy of the country. The cancelled flights resulted in losses to the company, which also reduces the revenue collected by the government. The government should have urged the unions to settle the disputes using other alternative methods other than the industrial action. Furthermore, it could have talked with the management to look into ways it can end the industrial action. Ultimately, the government had a role of facilitating the discussions of Qantas and the employees.