Qantas taken to court over 'sham company'

Photo / Peter Meecham

Australian pilots are taking their national airline Qantas to the employment court over allegations that a New Zealand airline is simply a subsidiary set up overseas in a bid to reduce wages.

The Australian and International Pilots Association claims the Qantas-owned subsidiary Jetconnect is a "sham company" set up in New Zealand for the sole purpose of avoiding Qantas' obligations under the award, and the employment agreement it has with Qantas pilots.

The pilots have asked the full bench of Fair Work Australia to vary the pilots' award so that it covers any wholly owned subsidiary of Qantas, thus forcing the airline to pay the New Zealand pilots Australian wages.

After apparently being set up to undertake domestic flights within New Zealand, last June Qantas quietly gave Jetconnect responsibility for 133 transtasman flights a week.

But the pilots say Jetconnect is effectively an operating division of Qantas - its New Zealand pilots wear Qantas uniforms, have Qantas staff numbers, and fly Qantas aircraft which travel routes determined by Qantas, the Sydney Morning Herald reported.

Conditions of employment at Jetconnect are significantly inferior to those at Qantas - pilots say they are paid up to 33 per cent less and do not receive the same superannuation entitlements.

- NZPA