Both Trade unions TWU and AIPA both identify their main Substantive issues as an increase in pay. AIPA negotiate with Qantas over pay, pilots have been offered a 2.5% pay increase. AIPA argues that this increase does not match the inflation rates and in real terms the pilots will be going backwards not forwards. Although AIPA is confident that this is more negotiable. Trade Union TWU representing ground workers, who also are in negotiations with Qantas are fighting for a pay rise of 5% pay rise per annum. Qantas stated that this offer is negotiable and they were willing to come to some agreement. Qantas offered a 3% wage increase per annum and an additional 1% for employees in higher tier jobs. This offer was for possibly 3 or 4 years.
Another Substantive Issue involved in the Qantas negotiations, TWU are demanding that employees have job security. Not only job security but protection for existing employees terms and conditions. TWU claim that base rate 38,000, overtime, and penalty dependant work has been undermined by contracting out over the past 18 months. Qantas in its October 2011 offer said that no Qantas employee would be made redundant due to the use of contractors, and that any contractors would have to have an agreement with TWU. In October 2011, TWU had a big breakthrough in negotiations when Qantas made a statement that they do not outsource and had no intention to Outsource. Although this statement was made the company and the unions still went into arbitration.
AIPA are concentrating their time and efforts upon one of the main substantive issues of outsourcing. Seeking a new clause in the agreements they want all Qantas flight codes QF to be operated by Qantas Pilots not outsourced alternatives. Qantas management and AIPA unable to reach any agreement the only action possible is that
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