Australian pilots union rejects Qantas Airways’ wage proposal

(Reuters) – The Australian pilots union said on Tuesday that it has rejected a wage proposal from Qantas Airways for its short haul pilots, days after the company’s engineers went on a strike to demand a better pay deal.

The proposal included a two-year wage freeze, higher minimum guaranteed hours, increased standby pay and guaranteed payments for flying hours that may be lost due to unplanned disruptions or schedule changes during a roster period.

“Qantas’ insistence on a two-year wage freeze despite being highly profitable while also seeking concessions on key conditions was viewed by pilots as unreasonable,” the Australian Federation of Air Pilots (AFAP) said in a statement.

The national carrier posted an annual profit after tax of A$1.25 billion ($865.8 million) for fiscal 2024.

Of the 786 short-haul Qantas pilots who voted, 63.4% voted against the deal.

The rejection of this proposal comes in the wake of a strike by the airline’s engineers last Thursday over demands including a 5% annual pay hike.

The pilots’ union warned of escalation if the airline ignored the result of the vote.

“If Qantas chooses to ignore the vote outcome and resort to its traditional hostile bargaining tactics, this negotiation could escalate,” AFAP Executive Director Simon Lutton said in a statement, without specifying what this could mean.

A Qantas spokesperson told Reuters that “the agreement we put to vote included a number of structural improvements to pay and rostering conditions that our pilots had been seeking for many years.”

“Given the outcome, we will now take some time to consider next steps.”

($1 = A$1.4436)