(THEME MUSIC PLAYS)
The reputation of Qantas is in tatters.
In the past few weeks The reputation of Qantas is in tatters.
In the past few weeks
it's been accused of selling In the past few weeks
it's been accused of selling thousands if tickets for flights
that were already cancelled,
shamed into refunding $500 million in flight credits
due to expire
and hit by a High Court ruling
it unlawfully sacked 1,700 workers.
Qantas boss, Alan Joyce, has quit,
departing early Qantas boss, Alan Joyce, has quit,
departing early to stem a tide of public anger.
But he's walking away with a $24 million payout.
This is the story we first broadcast lest September,
precisely one year before Alan Joyce's exit.
SONG: # I've been to cities... #
ROBERT MENZIES: I never have any hesitation myself
in saying that Qantas
is the greatest international airline in the world.
is the greatest There may be others that are bigger,
but in my humble opinion There may be others that are bigger,
but in my humble opinion there are none quite so good.
but in my humble opinion For 100 years
Qantas has been part of the national fabric.
Qantas has been part # But no matter how far... #
Feted by Prime Ministers.
Loved by the public.
A byword for the Aussie way. # I still call
# Australia
# Home! #
Now it's in damage control.
On behalf of the national carrier,
I want to apologise.
This year the national carrier's reputation for reliability
has been trashed.
ALANA GALL: It's not just bags being lost, it's flights being cancelled.
I've basically told everyone I know, "If you can, fly with Virgin."
Staff are demoralised and disillusioned.
It's a divide-and-conquer culture, which the airline has put into play.
It makes me angry because I see our airline running down.
High-paid Qantas executives stand accused of undermining the airline
through ruthless cost-cutting.
It's not part of the Spirit of Australia.
This is a corporate dictatorship. This is how the company behaves.
SHAE MCCRYSTAL: If you're not paying workers properly,
then how can you expect to get the kind of standard
that Australians have got used to from Qantas?
In this Four Corners report
we're bringing you the inside story In this Four Corners report
we're bringing you the inside story about what's happening at Qantas
told through the voices of people who've spent years working there.
You'll hear their views about why Qantas is failing its customers,
about its at times brutal efforts to cut costs and boost the bottom line,
as well as their fears about what this could mean
for the airline's world-leading reputation for safety.
On 17 June
Alana Gall was in a hotel packing for a Qantas flight home to Brisbane
Alana Gall was in a hotel packing after a special day.
ALANA GALL: I graduated with my PhD in Alice Springs.
When I got my PhD,
it was, like, one of the most amazing days of my life When I got my PhD,
it was, like, one of the most amazing days of my life
because I'd been working so hard all my life to get to that point.
In my bag I had gifts from my supervisors for finishing my PhD,
and one of those was a beautiful basket
made by the desert weavers in Central Australia.
They are one-off pieces, so, it can't be replaced.
I also had my PhD certificate in there.
But the most absolute most important thing that was in that bag
that brought me to tears
was a necklace that my father made for me.
On arrival, she went to the baggage carousel
and waited
and waited.
I thought, you know, potentially my bag is on the next flight,
maybe they just didn't get it on that one.
And the next flight had two of my supervisors on it as well,
so, I sent a text to one of my supervisors and said,
"Have you landed yet? Have you got your bag?"
And she replied and said, "Oh, Alana, I'm sorry. I'm at home."
So, I didn't realise how long I'd been waiting,
but she'd obviously landed, got her bag and gone.
but she'd obviously landed, So, my bag definitely wasn't there.
Days turned to weeks as Alana tried in vain to get help from Qantas.
I tried contacting over and over again.
You couldn't get through on the phone lines or anything either,
they were conveniently down,
and I was thinking, "Why is this happening?"
You know, it's a big company, it's been around for a very long time,
it's an icon in Australia,
and it's, like, "How is this it's an icon in Australia,
and it's, like, "How is this happening? Where's the management?"
And at that point, it was like... I was sad about everything else,
it's going to cost me a lot of money to replace,
but I was, like, that's fine.
But I was, like, my dad's necklace - that's...
It's irreplaceable.
Then suddenly, after weeks of inaction,
Then suddenly, Qantas took up her case
after a Four Corners researcher Qantas took up her case
after a Four Corners researcher followed her on Twitter.
Then coincidentally, within half an hour,
Then coincidentally, I got a message from Qantas saying,
"Send us a private message and we'll try and work out where your bag is."
And I was like, "Yeah. OK."
At that point, you know,
they said that they were going to make my case a priority.
I don't believe I would have it back
if it wasn't for them worrying about their reputation
if it wasn't for them more than their customer service.
It's one of thousands of stories like this -
bags lost, flights cancelled, flights delayed in record numbers
at a premium airline charging premium prices.
Qantas blames the problems
on labour shortages and COVID illness across aviation.
We're also seeing that passengers are rusty in travelling as well.
I think our customers are not match fit.
I think our customers This is nobody's fault.
It's not our staff's fault. It's not the airport's fault.
It's not the airline's fault.
It's just dealing with this aftermath of coming out of COVID.
But Qantas will not accept that part of the problem stems
from a deliberate corporate strategy to outsource jobs and cut costs.
DON DIXON: It is gut-wrenching.
It is gut-wrenching DON DIXON: It is gut-wrenching.
It is gut-wrenching to see the company that we loved
It is gut-wrenching end up like this.
My name's Don Dixon.
I was a loading supervisor at Qantas Domestic ramp for 20 years.
That job entails to ensure that the planes are loaded safely
with not only baggage but cargo, dangerous goods,
and that everything's located and locked down securely
in accordance to the regulations.
I had to sign the aircraft off.
If I didn't sign the aircraft off, it didn't go.
Don Dixon started at Qantas in different times.
It was extremely difficult to get into Qantas because it was a career.
When I first went for the application,
there was thousands of people When I first went for the application,
there was thousands of people
going for, I think, about 10 or 12 positions.
going for, I think, So, it was very hard to get in there
and you had to jump through a lot of hoops,
different phases of interviewing.
But once you got in
you became part of the Qantas family and it was a career.
After COVID devastated aviation in 2020,
Qantas announced it would retrench 1,700 ground staff
Qantas announced at Australia's major airports.
It outsourced the work to contractors,
anticipating savings of $100 million a year.
Insiders have told us how this strategy has backfired spectacularly.
(ENGINES WHINE)
From workers loading the bags to pilots flying the planes,
we've talked to dozens of employees about what's going on
we've talked to dozens of employees and what's going wrong.
The difficulty that current staff face
is they can be sacked for speaking out,
so, we disguised their identities to protect them.
We took the additional precaution of using an actor to voice their words.
As a pilot operating in the domestic environment on a regular basis, We took the additional precaution of using an actor to voice their words.
As a pilot operating in the domestic environment on a regular basis,
I can assure you that the delays passengers are facing
is a result of the outsourcing of the ground-handling staff.
We can be all ready to go on the flight deck, all passengers loaded,
and we'll be sitting there 20 or 30 minutes
waiting for someone to be available to push the aircraft back
or waiting for the passengers or freight to be loaded.
It wouldn't 100% be because of that,
but definitely over 50% of flights
are delayed because of the ground handling.
GROUND STAFF: Anybody that thinks
the outsource of the in-house ground handling is not a problem
the outsource of the in-house is delusional.
Bags aren't making aircraft on time.
Bags are being loaded onto aircraft incorrectly.
Bags are being loaded onto aircraft Flights are being cancelled
because crew are running out of hours to operate these flights Flights are being cancelled
because crew are running out of hours to operate these flights
in the time it would take to fix the issues.
Qantas outsourced to several specialist ground-handling companies,
including Swissport, which took over the work in Sydney and Melbourne.
By Easter this year, as passenger numbers grew, it was bedlam.
If you go to Sydney Airport now,
they've put garbage bags up
on the windows where all these bags are being held
that have been lost or haven't made flights
because...I don't know, that have been lost or haven't made flights
because...I don't know,
do they not want the people to see what's going on?
Outsourced ground-handling staff were struggling.
OUTSOURCED WORKER: We're expected to do, basically,
the tasks that the Qantas ground services did
but with a lot less numbers and experience,
and, as a result, we have a very high turnover rate
that makes the already bad situation even worse.
We can't build enough experienced people that makes the already bad situation even worse.
We can't build enough experienced people
doing the job more efficiently and safely,
and, so, we do jobs more slowly and more haphazardly,
as people just don't know, they're still learning on the job.
This is not how planes should be loaded.
Loading bags and cargo correctly is critical to safety
and, according to insiders, Qantas has been perilously close to error.
GROUND STAFF: One instance I am aware of,
the ground handlers, they loaded the aircraft incorrectly.
So, what should have gone in the front went in the back.
What went in the back should have gone in the front.
It's all things to do with the weight, these sorts of things.
There's a certain way aircrafts HAVE to be loaded down below.
And it was only realised it was done the wrong way
just before the cargo hold was supposed to be closed.
According to Qantas,
the error being picked up by a supervisor before the aircraft left
the error being picked up by shows a safety system that's working.
It claims there has been a lower rate of incidents
It claims there has been than when the work was done in house.
Ready for lift-off!
Let's go!
(CHEERING, APPLAUSE)
And, so, (CHEERING, APPLAUSE)
And, so, as we go into the next phase,
as JobKeeper ends at the end of this month...
The Morrison government gave a special wage subsidy to airlines
The Morrison government gave after it scrapped JobKeeper.
But it excluded the ground-handling after it scrapped JobKeeper.
But it excluded the ground-handling companies Qantas had outsourced to,
and workers abandoned the industry in their thousands.
It left a skills shortage,
causing chaos when passenger numbers climbed.
How do you feel when you hear Qantas executives say
that getting rid of you and your colleagues
has made not one iota of difference to service?
Well, that just shows how out of touch they are.
When I started, my supervisor had 20 years' experience already.
He showed me that, "This is what you do in this position," When I started, my supervisor had 20 years' experience already.
He showed me that, "This is what you do in this position,"
He showed me that, "This "When a machine breaks down.
"This is what you do when the machine doesn't work properly,"
all these things that you don't learn from a book or in training.
That experience is invaluable. You can't buy that.
Now these young people coming in now haven't got that.
TONY LUCAS: I think what's happened is we've taken an AFL-standard team
of ground handlers and ground staff
and what we've done is we've actually recruited of ground handlers and ground staff
and what we've done is we've actually recruited
the under-19s from the local park
to replace them.
Tony Lucas wears two hats.
He is the President of the Australian and International Pilots Association,
which represents thousands of pilots.
He's also a senior Qantas pilot himself.
I've been a pilot for about 30 years,
27 of those with Qantas Airways and risen through the ranks of Qantas.
I've flown the 747-400,
the 767 for most of my time in Qantas,
the 767 a very short sabbatical on the A380.
So, I'm a check-and-training captain on the A330.
So, I'm a check-and-training captain Today he's heading out of Sydney
airport on a training flight for another pilot.
Qantas pilots are usually barred from speaking to the media,
but his position with the Pilots Association makes him an exception.
Tell me some stories that you are hearing from your members
about what's been happening on the ground.
about what's been happening Oh... (LAUGHS)
There's lots of things occurring at the moment.
There's lots of things There's aircraft that are being told
they're departing There's aircraft that are being told
they're departing without any passenger baggage.
There's baggage that's not loaded off flights.
So, we've had a crew that have been ready to depart,
all the passengers loaded for the subsequent flight,
and the baggage hasn't been unloaded from the previous flight.
And then the pilot's being told that they need to depart
because we need to get the passengers to their destination.
So, now we've got two sets of passengers
So, now we've got that don't have their bags.
I've been ready to depart and had all the passengers on board,
and you check with the engineer on the headset
and ask how the cargo loading's going,
and his response is, "What cargo loading? There's no-one here."
Qantas has an enviable safety record.
The company is adamant that is not at risk.
The company is adamant But Qantas staff have concerns.
All the disruptions But Qantas staff have concerns.
All the disruptions that we're getting,
All the disruptions none of them in and of themselves
are anything different to what we deal with on a day-to-day basis.
are anything different to what What we're seeing at the moment
is we're seeing them occur What we're seeing at the moment
is we're seeing them occur multiple times in the day.
We're seeing them occur across multiple weeks.
We're seeing them And ultimately that's where
things start to increase And ultimately that's where
things start to increase in operational complexity.
Any one of those things on their own isn't a big deal to deal with,
but when you start adding them up all together
but when you start adding them up across multiple flights
that starts to become a concern.
For safety?
For safety.
PILOT: As frustrating as it is for passengers,
for pilots it means we're working a lot harder
for pilots to keep the flights on schedule.
We're working longer hours. to keep the flights on schedule.
We're working longer hours.
We are redlining, running at max capacity
in a very dynamic, challenging environment.
There's a lot that can go wrong.
STEVE PURVINAS: Alright, come through,
and I'm going to show you some very old aircraft.
There's certainly a bit of aviation history in here.
Sure is.
I'll... First, I'll take you over to the Tiger Moth
I'll... First, I'll take you over and I'll probably show you
just a little bit of a demonstration
of what can happen if you're too fatigued.
Steve Purvinas heads
the Licensed Aircraft Maintenance Engineers Association.
He spent 20 years working for Qantas.
So, I'm going to open her up,
go to the oil cap
and take the oil cap off.
And I would normally pour my oil
And I would normally in there like that.
Give it a wipe.
Give it a bit of a wipe just Give it a wipe.
Give it a bit of a wipe just to make sure that everything's OK.
And there we go.
What's the problem?
The problem is I forgot to put the oil cap back on.
The problem is So, what that can lead to is,
with the oil cap loose like that, the oil can come out in flight,
and that's the problem.
This happened on a Jetstar flight.
Staff numbers and fatigue, distractions,
all of these things combined
can lead to problems on planes.
According to Steve Purvinas and some Qantas engineers we spoke to,
According to Steve Purvinas and that's a risk the airline is running
because of deep staff cuts during the COVID crisis.
When any given engineer goes into work today
they're loaded up with more work than they would've been pre-COVID.
About two or three months into COVID Qantas come out and said, they're loaded up with more work than they would've been pre-COVID.
About two or three months into COVID Qantas come out and said,
"We want to make 20% of the engineers redundant."
"We want to make They were oversubscribed.
They ultimately let go near on 35% of the engineers.
And we were telling them all along that you cannot do this,
"You won't have enough people employed by the airline
"to maintain the aircraft when things rebound."
It's hard to believe that Qantas,
which has staked its reputation on its enviable safety record,
would cut numbers so severely that it would impact on safety.
It's sort of like Qantas have had this long-term safety record
and they're now trying to cash in on it,
that is, "We'll let slip on some of these safeguards
"that were put in place over many years,
"we'll let some of the experience go,
"we'll push the guys further than they've ever been pushed before
"and hope that things don't fall apart."
Qantas maintains it needs fewer engineers than pre-COVID
because its maintenance requirements are lower,
and says it will recruit more as flying returns to pre-COVID levels.
It accuses unions of making baseless safety claims
to further their industrial agendas.
But that doesn't address the worries felt by its own employees.
A licensed engineer at Qantas
are dealing with.
told us what he and his colleagues are dealing with.
ENGINEER: We're just ridiculously busy.
The planned work for the night,
we used to get through it almost, what they planned for us,
we used to get through it almost, almost every night.
Now the first thing we do almost every night.
Now the first thing we do
at what work is up to its time limit
is have a look at what work is up to its time limit
and has to be done so the plane can fly the next day.
And we immediately start looking at what we can get rid of
because we know we're not going to get through all that planned work.
because we know we're not going to It's just not possible.
People feel like they have to rush around
and they aren't able to take the time that they used to be able to
to make sure that they're double-checking
to make sure and not making mistakes.
(ENGINES WHOOSH)
Ian Burton lives at Kurnell
on the southern fringe of Sydney's Botany Bay,
under the flight path and across the water
from the airport where he used to be employed.
IAN BURTON: I worked in fleet presentation
at Qantas Sydney International Airport,
at Qantas and just presented the aircraft
so when the people came on board they'd say, "Wow."
We'd clean seats, pockets, lavatories, the cockpit.
Ian was among the 1,700 workers who lost their jobs
when Qantas outsourced ground handling.
when Qantas outsourced I was absolutely disgusted.
We were on JobKeeper. We thought we'd have a job to go back to.
If they wanted me back tomorrow, I'd go like that.
It was just a great family environment.
It was just We looked after each other.
Even though he loved the job,
he was appalled by the approach that Qantas took to health and safety
during the early stages of the COVID outbreak.
When it came to COVID safety, I think they were very lacking.
When it came to COVID safety, They thought there was no need
for us to clean the aircraft with masks on.
We weren't given proper antibacterial spray,
weren't given cloths, really, to do the job.
We were just given a normal cloth, add a bit of water with it,
We were just given a normal cloth, clean the tables down.
But their attitude was, clean the tables down.
But their attitude was, "She'll be right."
Like, even doing bathrooms, we had no antibacterial sprays,
and that's the one place you'd think, cleaning the lavatories,
with so many people on board the aircraft,
you'd need that.
How do you feel about that?
Overall, I...
It... (SIGHS)
Overall, It... (SIGHS)
Overall, I thought that was pretty low
because you put yourself in the customer's point,
you expect everything to be sparkling, nice and fresh,
everything's sanitary, it's clean,
but behind the scenes
it's pretty disgusting.
Qantas insists that employees cleaning aircraft
Qantas insists did use chemical disinfectant.
Yet SafeWork New South Wales found otherwise.
It slapped an improvement notice on Qantas after inspecting a plane,
which might have transported passengers with COVID-19,
where workers "were required to handle which might have transported passengers with COVID-19,
where workers "were required to handle
"wet and used tissues, used face masks, soiled nappies
"and occasionally had to clean vomit and blood off surfaces"
without mandated personal protective equipment.
The inspector also saw Qantas staff:
Qantas employees in customer-facing roles
have told us that, early in the pandemic,
wearing masks was discouraged by managers.
wearing masks TERI O'TOOLE: In the beginning
Qantas were not wanting our crew to wear masks or gloves,
and the feedback was, Qantas were not wanting our crew to wear masks or gloves,
and the feedback was,
especially in our business-class area,
especially that "it would scare our passengers"
or "it wouldn't be something that the passengers wanted to see,"
and we found that quite disturbing.
GROUND STAFF: March, April, May of 2020,
when we were all in lockdown, COVID was running rife,
when we were all in lockdown, we were told not to do it.
"It wasn't a good look." "It would scare the customers." we were told not to do it.
"It wasn't a good look." "It would scare the customers."
Qantas maintains that from February 2020
it made masks available to any crew who wanted them
and notes it acted ahead of government mandates
and health recommendations.
Theo Seremetidis worked in the ground crew at Qantas in Sydney.
He was a health and safety representative,
formerly responsible for safeguarding the interests of his colleagues.
Last October
SafeWork New South Wales launched Last October
SafeWork New South Wales launched a criminal prosecution of Qantas
SafeWork New South Wales launched because of the way it treated him.
For legal reasons he can't speak about the case.
Quite frankly, Theo Seremetidis is a hero of the pandemic. For legal reasons he can't speak about the case.
Quite frankly, Theo Seremetidis is a hero of the pandemic.
He was fully trained in workplace health and safety procedures.
He was in charge of the cleaning gang on the planes.
And when the planes started to come in from China
when we knew the virus was around,
he was concerned.
He wrote to the company, he wrote to management and set out his concerns,
asking management what they were doing
to address the risk that the virus presented.
Fearing infection,
employees were reluctant to work Fearing infection,
employees were reluctant to work on planes arriving from China.
In a formal warning letter,
Qantas ordered employees to do the work or risk... In a formal warning letter,
Qantas ordered employees to do the work or risk...
It claimed...
..and branded the workers' concerns as unreasonable.
Theo Seremetidis said to his workforce,
as he was entitled to do under the laws,
"We won't clean this plane.
"We'll stop work until we can get some assurances from the company
"that we'll be properly trained, we have appropriate equipment
"and that we can get some assurances
"that this plane is not infected with the virus."
"that this plane They stood him down.
And that's still, to this day, the subject of court proceedings.
According to Qantas,
Theo Seremetidis was stood down
amid allegations he incited unprotected industrial action
by discouraging workers from cleaning planes.
IAN BURTON: Well, what happened to Theo
I thought was so disgusting IAN BURTON: Well, what happened to Theo
I thought was so disgusting
because he was looking after
not just mine but everybody who worked on the aircraft's interest
just to make sure we were safe on board.
And management just didn't care less about him
and they've put him out to dry as a scapegoat,
which really isn't the Australian way.
which really isn't You look after each other.
COVID was a disaster for aviation.
ALAN JOYCE: Right now
all airlines are in the middle
of the biggest crisis our industry has ever, ever faced.
And the impact will be felt for a long time,
particularly, I'm sorry to say, the impact on our people.
Qantas retrenched 10,000 people -
a third of its workforce.
It argues it had no choice,
that without deep cuts it would have gone broke.
that without deep cuts But COVID was also an opportunity.
ALAN JOYCE: On a permanent basis
we plan to deliver $1 billion ALAN JOYCE: On a permanent basis
we plan to deliver $1 billion in annual cost savings
we plan to deliver $1 billion from financial year 2023.
We announced a high-level plan for recovery at the end of June.
Over three years that will save us $15 billion.
That is achieved by hard decisions
like job losses and ongoing stand-downs of our people.
The quest to cut costs at Qantas is nothing new.
Since it was privatised 30 years ago
it's had to compete against airlines with lower labour costs.
And management has crafted tough and creative ways
to bring down the wages bill.
Its strategies go to the heart of a debate
Its strategies about where the balance lies
between fairness and a company's right to try boost the bottom line.
(KNOCK AT DOOR)
Hello there! Matthew!
Indeed. Nice to meet you.
Stephen, how're you going? Very well, very well.
Stephen, how're you going? Welcome. Come on in.
I've opened the door to the world!
You have. I've opened the door to the world!
You have. You've got the world on your wall.
You have, indeed. This is my little reminder.
You have, indeed. I was never great at geography,
so, putting this here reminds me of I was never great at geography,
so, putting this here reminds me of the world that I've managed to see.
so, putting this here reminds me of And how long did you work for Qantas?
So, I was with the Qantas Group of companies
So, I was with for just shy of 16 years,
so, my entire time there for just shy of 16 years,
so, my entire time there flying as cabin crew
I never worked for the company proper.
So, I managed to work for wholly-owned subsidiaries
or labour-hire firms during my time,
but I always flew under the Qantas tail.
but I always So, to put it simply,
my entire time I wore a Qantas uniform
and I flew on a Qantas-branded aircraft,
but never actually worked for Qantas Airways.
but never actually What was that all about?
This is how the company moves forward now, What was that all about?
This is how the company moves forward now,
so, by creating these wholly-owned subsidiaries
so, by creating and small silo companies.
As they do that,
they manage to water down As they do that,
they manage to water down the pay and conditions each time
to slowly erode the high value of pay and conditions
that once existed in the legacy part of the airline.
So, this is my little coffee table of memories.
Matthew Allsop was hired by a new Qantas subsidiary,
Matthew Allsop was hired Qantas Cabin Crew Australia,
in advance of the launch of the Qantas A380s.
in advance of the launch That's my 10-year service pin.
He worked alongside staff employed by other Qantas subsidiaries
in different countries
on entirely different pay.
I spent eight and a half years on the A380 aircraft,
so, probably my favourite aircraft I ever worked on.
I was part of the start-up crew for that within the airline.
But on that aircraft, on any given day,
you would have crew employed under four different contracts.
So, we had our wholly-owned New Zealand-based subsidiary,
the UK-based subsidiary
and then you had your two Australian subsidiaries.
And when you equated their hourly rates and conditions,
And when you equated one legacy crew, for example,
would get you two Kiwis, three UKs
or two Qantas Cabin Crew Australias.
So, all four of those
working together side by side, So, all four of those
working together side by side, pushing carts, handing out meals
working together side by side, on one plane.
George Orwell summed it up perfectly in his quote that,
George Orwell summed it up perfectly "All animals are created equal,
"but some animals "All animals are created equal,
"but some animals are more equal than others."
And that was our working environment onboard that aircraft every day.
(ENGINES WHINE)
On Qantas Domestic,
hourly base rates can vary from about $40 for legacy staff
down to just $23 for newer staff hired through a subsidiary.
I don't work for a tea and coffee company.
I work in a safety environment
and I work on a heavy piece of machinery.
I am the airline's first responder.
If there is a fire, I am the airline's first responder.
If there is a fire, I'm required to run towards it.
If there is a fire, If there is a medical emergency,
I'm required to run towards it and render all help.
So, for that critical safety-sensitive role,
basically people are now being paid
the same as if they worked in a fast-food outlet
the same as if they worked or worked at a supermarket.
How does Qantas rank as an employer?
Well, I think it's fair to say Qantas is a militant employer. How does Qantas rank as an employer?
Well, I think it's fair to say Qantas is a militant employer.
It's been prepared to take every angle under the act.
It's been prepared to take really destructive decisions
It's been prepared in pursuit of the bottom line.
(PROTESTER CHANTS INDISTINCTLY) in pursuit of the bottom line.
(PROTESTER CHANTS INDISTINCTLY) (CHEERING, APPLAUSE)
(PROTESTER CHANTS INDISTINCTLY) We stick together!
(CHEERING, APPLAUSE)
People who come to work with us
should be getting the same rate of pay that we get.
In 2011, Qantas took one of the most militant industrial actions
In 2011, Qantas took one of the most the country has ever seen.
We have decided to ground
the Qantas international and domestic fleets immediately.
I repeat - we are grounding the Qantas fleet now.
(SPEAKS INDISTINCTLY)
This extraordinary move
left tens of thousands of passengers stranded worldwide.
It was a response to protracted union campaigns
for new agreements with job-security clauses.
Till we get clear with them what's going on.
The TWU was offered an exceptional deal
but is sticking to its completely unrealistic claim
that would prevent us from the sensible use of contractors.
GROUP: (CHANTS) United we won't be defeated!
GROUP: (CHANTS) Qantas scored a decisive win.
To stem the economic harm,
FairWork intervened
and threw out the union demands.
SHAE MCCRYSTAL: Qantas inflicted massive damage
on its own brand, on consumers and on the economy
in order to engineer an outcome.
And what it wanted
was ultimately And what it wanted
was ultimately to be able to outsource
its ground handling and other operations.
its ground handling (PROTESTER SPEAKS INDISTINCTLY)
KEITH MARRIOTT: (PROTESTER SPEAKS INDISTINCTLY)
KEITH MARRIOTT: It was totally unnecessary.
I believe it could have been a negotiated settlement.
Not only did it cause massive anxiety to Qantas families, I believe it could have been a negotiated settlement.
Not only did it cause massive anxiety to Qantas families,
Not only did it cause but it broke the trust
between Qantas pilots and the company,
and I don't think it's ever been recovered.
Pilot Keith Marriott is a Qantas veteran.
My career started with Qantas in 1984.
I had a glorious career, which finished in December 2020.
So, 36 years with the company.
I had a command on a 747 when I was age 37, so I was absolutely blessed,
and I totally enjoyed my time with Qantas.
I considered it to be one of the greatest privileges
I considered it that anyone could have.
I couldn't have scripted a better career.
This photograph is a Boeing 767,
it's the type of airline I got my first command on back in 1994.
it's the type of airline I got For a couple of years
Keith Marriott For a couple of years
Keith Marriott was active in the Pilots Association
Keith Marriott on top of his Qantas job.
How do you feel about what's happening with Qantas now?
How do you feel about I'm saddened. Deeply saddened.
Both as an ex-Qantas captain I'm saddened. Deeply saddened.
Both as an ex-Qantas captain and as a frequent flyer
I've been loyal to the company for a long time.
I don't think they value their workforce.
I think their workforce are taken for granted.
I think their passengers are taken for granted.
And, you know, their greatest asset IS a loyal workforce.
And, you know, their greatest asset I don't know what the answer is.
Certainly they need to have a look I don't know what the answer is.
Certainly they need to have a look at the entire business model
and figure that nickel-and-diming people
and figure is not the way to make this airline
profitable and functional is not the way to make this airline
profitable and functional once again.
He says Qantas has played divide and conquer.
For pilots, job security is everything.
It takes a long time to become a pilot.
You put a lot of hard work into it.
You basically fully commit your life to the job.
There's no other job which is under so much scrutiny.
And you're trained to a very high level,
And you're trained but your skills are not portable,
therefore, job security is absolutely paramount.
And pilots cherish their job security.
And pilots And, unfortunately,
that has been used in successive EBAs as a threat to the pilots -
"If you don't comply with what we want,
"we'll find someone else that will."
TONY LUCAS: In terms of pilots,
one of the things that Qantas has done very successfully
because the law allows them to
is that they've acquired or set up subsidiary airline groups.
And then what they do is that they've acquired or set up subsidiary airline groups.
And then what they do
is they play one group of pilots And then what they do
is they play one group of pilots off another group
is they play one group of pilots and essentially threaten to
take the flying that a group of pilots is currently doing
and give it to another group of pilots.
NEWSREADER: Qantas is soaring to new heights,
on track to launch the world's longest non-stop commercial flight.
While journalists did puff pieces on track to launch the world's longest non-stop commercial flight.
While journalists did puff pieces
on Qantas's plans for ultra-long-haul flights on new planes...
NEWSREADER: We joined the flight at Heathrow as guests of the airline...
..they missed the industrial-relations back story.
Qantas told its long-haul pilots
that, unless they met its 'investment case' for the new planes,
that, unless they met its it would have no choice
but to give the work to a new company
employing new pilots "that can provide the cost base we need."
TONY LUCAS: Ultimately, they put a metaphorical gun to our head
TONY LUCAS: Ultimately, they put and they said to us that,
"If you don't agree to the terms and and they said to us that,
"If you don't agree to the terms and conditions...it's a one-off deal,"
that if we don't agree to the terms and conditions
that if we don't agree that were being offered,
then they would give that flying to another entity.
It used the same tactics with short-haul pilots.
The stress affiliated with this is underestimated. It used the same tactics with short-haul pilots.
The stress affiliated with this is underestimated.
When you mix a safety-critical role with a threat of losing your job,
then it really only ends one way.
A mistake will be made, there will be an incident,
and there could be devastating consequences as a result.
And I believe that Qantas management
are underestimating the impact of their behaviour.
Qantas ground handler Don Dixon is heading from south-western Sydney
to a pub not far from the airport.
He's meeting up there to a pub not far from the airport.
He's meeting up there with some of his old work mates.
DON DIXON: It's great to catch up, you know,
we have a bit of a laugh about the old times
and some of the things that happened.
For many years Don was the chief union delegate
For many years for the workers Qantas retrenched.
Now, sometimes, he's more like a Lifeline counsellor.
How many calls do you get?
I could get sometimes 20 a day.
Wow. Wow.
G'day, guys.
Hey, Don! How're you going? This is Stephen from the ABC.
G'day. Steve, Four Corners. Hey, Steve.
G'day. Steve, Four Corners. Steve, how're you going?
(GROANS) Steve, how're you going?
(GROANS) Well, interesting times isn't it?
(GROANS) It IS an interesting time.
So, what about the executives coming out onto the ramp?
So, what about the executives On the day of the gathering
news had broken that Qantas wanted On the day of the gathering
news had broken that Qantas wanted at least a hundred managers
to volunteer to work as baggage handlers
in a desperate bid to stem the flight delays and cancellations.
They think an executive's going to be on his knees
for, you know, an hour and turn... you know, lifting 32-kilo bags.
A hold full - I'm not talking about one bag,
I'm talking about 150 bags and freight.
Were you slightly amused when you saw that they were going to get managers
Were you slightly amused when you saw to do the jobs that you used to do?
I was just shocked
that they were going use managers I was just shocked
that they were going use managers and executives to do it.
It's not an easy thing to learn overnight.
It takes months to learn how to load an aircraft.
It takes months Last year the Federal Court ruled
that Qantas unlawfully terminated Last year the Federal Court ruled
that Qantas unlawfully terminated these workers
that Qantas unlawfully terminated and their 1,700 colleagues.
It found that Qantas seized on a vanishing window of opportunity
to retrench the workers
when they were stood down during COVID
and before they gained the right to take lawful industrial action.
I've got a family that I need to support.
I'm dealing with other issues at the moment.
But it was a hollow victory.
With the work already outsourced, But it was a hollow victory.
With the work already outsourced, they didn't get their jobs back.
Well, the court ultimately said, "Too hard to unscramble the egg. With the work already outsourced, they didn't get their jobs back.
Well, the court ultimately said, "Too hard to unscramble the egg.
"And even if we did, if we reinstated these workers,
"Qantas has made it clear, and we accept,
"that they would simply sack the workers again."
"that they would (CAMERA SHUTTERS CLICK)
25 August this year and it's a big day for Alan Joyce -
the release of the annual financial results.
the release He's fronting the media.
It's fair to say this has been an extremely challenging time
It's fair to say this has been for the Qantas Group,
for our people for the Qantas Group,
for our people and unfortunately for our customers.
for our people Delayed flights...
Unsurprisingly, Qantas posted a big loss,
but the boss is upbeat.
Our demand is at record levels at the moment.
We're actually seeing huge demand in leisure, in business,
We're actually seeing huge demand we're winning corporate accounts.
After some fairly tame questions we're winning corporate accounts.
After some fairly tame questions from journalists,
we put to him a core issue raised by this report.
we put to him Mr Joyce, is it fair
to have people working side-by-side Mr Joyce, is it fair
to have people working side-by-side doing the same job,
employed by different companies on entirely different rates of pay,
all wearing the Qantas uniform?
Well, Stephen, that's a thing that's done...
..that's a thing that's done around the industry
and there's a lot of other companies do the exact same thing.
What we have had to do over the years is become efficient
to be able to compete in a very competitive market.
I would say that the Australian domestic market
is the most competitive in the world.
We have seen airlines like Virgin, like Bonza, like Rex
come into the market and start up from scratch,
and the national carrier, to survive, has to have adapted to it.
Is it fair?
It's a necessity for us to keep...
..to keep our business going.
The Qantas strategy is now under threat.
The Qantas strategy There is a new federal government
elected on a mandate There is a new federal government
elected on a mandate of 'same job, same pay'.
How are you anticipating that will affect your business model?
So, same job, same pay,
we're obviously, like everybody, talking to the government about it.
But can I ask, so, how do you define that?
But can I ask, So, somebody flying a Dash-8,
should they get the same pay as somebody flying an A380?
Because it's the same job, it's a pilot.
What about cabin crew working side by side
employed by different entities, some within the Qantas Group?
Stephen, I'd ask you
to respect that we are here to talk about the results.
We spent two months trying to secure an interview with Alan Joyce.
He demanded any interview must run in one long continuous take
He demanded any interview as if it was live to air,
which doesn't fit the Four Corners format.
I'm happy to do it, you've got an invite from me
to do a full sit-down interview, to do a live.
You can have me for 15 minutes, 20 minutes to cover all these issues.
My efforts to interview him here were cut short.
Not long after, I was escorted from the building by security.
Get back to profit...
The Qantas boss says
the worst of the delays, cancellations and baggage woes
is over
and service will soon be back to normal.
But we will fix it, and it's gonna be fixed pretty rapidly,
But we will fix it, and and we know the brand will recover.
Rebuilding trust with the public and its workforce might take longer.
FLIGHT ATTENDANT: The cuts that have come
FLIGHT ATTENDANT: from the decisions of management
have been incredibly, incredibly deep.
And I feel like it's possibly too deep,
which is now impacting upon the customer experience.
We always used to love working for Qantas, which is now impacting upon the customer experience.
We always used to love working for Qantas,
and now it just makes us feel like, you know, we're disposable
and almost like the company hates us.
PILOT: I feel like the staff have been beaten down,
PILOT: I feel like the staff especially the staff
that we deal with on a day-to-day especially the staff
that we deal with on a day-to-day basis around aeroplanes -
that we deal with on a day-to-day ground staff, check-in staff.
They've been beaten down. ground staff, check-in staff.
They've been beaten down.
They're not the same.
Captions by Red Bee Media
Copyright Australian Broadcasting Corporation