Unions fear losses in Air NZ- Qantas alliance

SYDNEY - The Australian Council of Trade Unions (ACTU) fears hundreds of jobs will be sacrificed and Australia's aviation skills base eroded if the proposed $544.48 million alliance between Qantas and Air New Zealand proceeds.

The union made submissions to the Australian Competition and Consumer Commission yesterday, claiming the airlines had been disingenuous in claiming that their alliance would not affect jobs.

It asked the commission to impose enforceable undertakings on the airlines that staff would not be made redundant or disadvantaged by plans to co-ordinate scheduling, routes, capacity and aircraft.

"A growing Qantas should be in the position to provide undertakings that it will create more jobs in Australia," the ACTU submission said.

The deal is being assessed by competition watchdogs on both sides of the Tasman.

The ACTU argued the proposal was not in the national interest, citing Air NZ's involvement in Ansett.

"Following modelling undertaken after the collapse of the Air NZ-owned Ansett group of companies, it is estimated that for every direct Ansett job lost, another 2.5 external jobs were lost.

"We have no reason to believe that a similar multiplier would not apply, should there be job losses within Australia and New Zealand."

The ACTU also rejected airline claims that cost-saving moves to co-ordinate operations would not result in less choice of carriers and frequency of flights.

It said the existence of full-service national flag carriers on both sides of the Tasman was essential to safeguard the future of the industry and economic interests in both countries.

It also questioned Air NZ's ability to manage the airlines' joint operations, and said there was little evidence to support claims the tourism and export industries would benefit from the alliance.

A separate submission from the Australian Manufacturing Workers Union said a skills shortage in maintenance and engineering meant it was in the public interest to ensure Qantas retained its local maintenance operations.

The Australian stance is in contrast to that of New Zealand's largest union, the Engineering, Printing and Manufacturing Union, which is strongly in favour of the alliance.

- NZPA