Qantas to outsource ground handling across Australia

flydoc

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Qantas has announced it will cut a further 2400 jobs and save $100 million pa by outsourcing baggage handling, aircraft tugging and aircraft cabincleaning at major airports across Australia

 
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dougieboy

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Unfortunate reality... but reasonably foreseeable. I suspected there would be another job cull announcement after the initial job cuts several months back. Easier to swallow when the cow isn't whole. Outsourcing to the lowest bidder, so I wonder when we have to start worrying about our bags going missing? Outsourcing didn't quite work out for quarantine either. That's a lot of jobs though, my heart goes out to them in these times of uncertainty.
 

TheInsider

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What's the bet another deal with Dnata!
Shame to see that this will 'possibly' happen, but good to see that 'above the wing' staff still have their jobs.
Realistically there are only 3 'real' players in the market. Swissport (old Aerocare), Menzies and Dnata.
QF Link already use Swissport and have for many years.
 

TomJones

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I would imagine the gig would go to either Menzies, Swissport or DNATA given they're the largest local operators. Possibly the latter given Qantas sources their catering from DNATA.

These providers already service most (if not all) international carriers in Australia, VA, TT, and some JQ, and I've never had any complaints. This move was always coming.
 
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Mattg

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More sad news. That's a lot of job losses.

These providers already service most (if not all) international carriers in Australia, VA, TT, and some JQ, and I've never had any complaints. This move was always coming.

Do you think this would have happened eventually even without covid?
 

TomJones

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More sad news. That's a lot of job losses.



Do you think this would have happened eventually even without covid?

I personally think so. Maybe not this quickly, but it would have happened eventually. Outsourcing it represents a cost saving to QF, these providers are specialised, and it saves QF having to procure and maintain their own fleets of ground equipment.

As a side note, I wouldn't be surprised if QF are also running the numbers on outsourcing other airport roles such as checkin, gate staff etc. Not to suggest whether or not they'll do it because this is speculation on my part, but surely someone's at least brought it up in a meeting
 

justinbrett

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I can't believe the media attacks on AJ. Honestly, what did you expect him to do? He runs an airline that the state premiers have grounded.

He's in a corner and his job is to make sure we have an airline at the end of this. Perhaps if we could get the domestic market going things would be a lot better (noting only one state has any significant community transmission). This is what border closures get you, and there's much worse things to come if this continues.
 

TheInsider

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As a side note, I wouldn't be surprised if QF are also running the numbers on outsourcing other airport roles such as checkin, gate staff etc. Not to suggest whether or not they'll do it because this is speculation on my part, but surely someone's at least brought it up in a meeting
Not at least for the next 6 months from what I've been advised. Currently in their EBA as a side letter where no contactors and other companies can do the work. Expired EBA from June, but QF has just committed to continuing on with the side letters for 6 months (approx). So honestly don't think they are going to do it short or medium term.
Way too much training and too many different systems to handle, where as ramp is just putting on bags/freight etc.
Post automatically merged:

I can't believe the media attacks on AJ. Honestly, what did you expect him to do? He runs an airline that the state premiers have grounded.
All the attacks are deserved, even pre-covid he continually devoured the airline whilst making huge amounts of money.
 
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I'm no big investor however I would be more than pissed to find out that a CEO could have been "saving" a company $100million a year by outsourcing and receiving the same level of service as what is currently being provided.

Something does not sit right with these numbers, Comments ?

Qantas has announced it will cut a further 2400 jobs and save $100 million pa by outsourcing baggage handling, aircraft tugging and aircraft cabincleaning at major airports across Australia

 

justinbrett

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At the very least? You have an option to temporarily stand down staff. You re-hire them when travel picks up.

The new operator will hire them when demand picks up. They’ll just be working for a different company. They’ll get paid their redundancies now which is much fairer than stringing them along for years without pay.

If you want to save jobs in aviation, airlines need to fly.
 

Happy Dude

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The new operator will hire them when demand picks up. They’ll just be working for a different company. They’ll get paid their redundancies now which is much fairer than stringing them along for years without pay.

If you want to save jobs in aviation, airlines need to fly.
There is jobkeeper of course.
 

Rug

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I'm no big investor however I would be more than pissed to find out that a CEO could have been "saving" a company $100million a year by outsourcing and receiving the same level of service as what is currently being provided.

Something does not sit right with these numbers, Comments ?
You should cut the CEO's pay as he only has a partial job to do for quite a period of time
 

MEL_Traveller

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The new operator will hire them when demand picks up. They’ll just be working for a different company. They’ll get paid their redundancies now which is much fairer than stringing them along for years without pay.

If you want to save jobs in aviation, airlines need to fly.

lemme guess... for the same salary they're on now? It would be surprising if so.

It's not for us to determine'what is fair'. That should be up to those directly impacted. If they wanted to be stood down for 12 months but have a job to come back to, that should have been their choice.
 

justinbrett

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lemme guess... for the same salary they're on now? It would be surprising if so.

It's not for us to determine'what is fair'. That should be up to those directly impacted. If they wanted to be stood down for 12 months but have a job to come back to, that should have been their choice.

Qantas is not a charity. It could be many years until demand returns to normal.

What would you prefer - Qantas to go under and end up like Virgin?

I’m sorry for the workers but it’s a sad fact of the economic impacts of this recession, which has been increased exponentially by state border closures. Even Canberra airport itself says it might go under.
 

MEL_Traveller

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Qantas is not a charity. It could be many years until demand returns to normal.

What would you prefer - Qantas to go under and end up like Virgin?

I’m sorry for the workers but it’s a sad fact of the economic impacts of this recession, which has been increased exponentially by state border closures. Even Canberra airport itself says it might go under.

It’s at absolutely no cost to Qantas if it offers staff the chance to be stood down, without pay, until their business picks up.

But no, qantas wants a cheap workforce when it returns.

Aussie icon? It’s not even giving aussie battlers a chance :(
 

Must...Fly!

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Qantas tried this years ago. They reached a compromise with unions and established QGS, probably because they didn't want long running industrial action and the union's know well that at the end of the day it was the best they could do.

This would be an effort to effectively do what Qantas wanted to do on the creation of QGS and outsource totally, removing legacy costs from ground ops.

I am not totally in favour of this move and I am unconvinced at a $100 million annual saving. But with an obviously less complicated fleet mix there will be changes that make outsource much more attractive.

Virgin have done it in Perth on both sides of the ramp since day dot. Most people would have no idea. Similarly MEL international was done by outsourced while across the terminal in domestic it was in house. I can understand the motivation to do this now, while demand is suppressed and the union's ability to fight back is limited.

There is merit to the stand down argument but there is a reality here that the jobs are not highly skilled (unlike pilots for example) and take limited training to bring in new staff.
 
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