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A Senate committee has put the blowtorch to Qantas over its decision to close three QantasLink bases in Canberra, Hobart and Mildura.
The damning report from the inquiry into the shuttering of the three bases, which is slated for April this year despite outcry from staff and elected officials, concluded that Qantas had not done enough to consult with stakeholders on the closures or provide adequate support to those affected.
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“Committee members heard no evidence to suggest that Qantas listened to the concerns of local councils, members of parliament, and regional airports about how this decision might impact communities in the short- and long-term,” the report read.
Around 70 employees will be affected by the move, which will consolidate operations from the three bases into Sydney, Melbourne and Brisbane. The Flying Kangaroo had said this would help operational reliability and improve response to disruptions.
“Consolidating the operations of a regional airline, like QantasLink, into Australia’s major cities risks making QantasLink a regional airline in name only. Centralising jobs in Sydney, Melbourne and Brisbane does not support or strengthen regional Australia,” the senators wrote.
“A genuine regional airline seeks to build connectivity and strengthen regional communities by providing local jobs, supporting professional aviation hubs, and investing in regional communities for the long-term.
“The committee believes that, as Australia’s national carrier and ‘the spirit of Australia’, Qantas would be better served by strengthening and diversifying its regional network.”
A survey conducted by the TWU alongside two other unions in September had shown that 68 per cent of affected workers would consider other employment if the closures went ahead.
Qantas has said it will provide a “comprehensive support package” to impacted staff members to help them either commute or relocate to those bases, including a $700 allowance per fortnight and free air travel from their home bases for two years, as well as rostering support.
The senators were sceptical, however, saying the package “does not recognise or compensate” for the disruptions to the lives of employees who may have worked in those regional centres for decades and have families “entrenched in their communities”.
“The committee recognises that Qantas has worked with unions and affected employees to find ways for these employees to continue living in the towns they call home,” the committee wrote.
“This is commendable, but the committee is not convinced that these arrangements will be supported by Qantas long-term, and certainly, as these employees retire or leave the business, their jobs will permanently leave those communities.
“The committee expects Qantas to stand by its promise to support these employees for the long-term and respect their decision to stay in their communities.”
The report recommended Qantas work more closely with unions for affected staff to determine “appropriate compensation” for staff “doubly disrupted” by the closures, including those who had relocated to the affected bases as part of a recent program, and those who had moved after the closure of their former bases in locations such as Cairns.
It also recommended that the government “considers options for a formal mechanism to facilitate meaningful consultation between employees, the flying public, aviation sector stakeholders, regulators, and airlines on decisions affecting Australia’s aviation network into the future”.
While the committee’s report was chaired by Nationals senator Matt Canavan, Labor senators have broadly agreed with the report and its recommendations, noting that they and Transport Minister Catherine King had spoken out against the decision at the time.
The ALP, along with independent ACT senator David Pocock and the Greens, urged Qantas in their comments to strongly reconsider the move, with Tasmanian Greens Senator Peter Whish-Wilson saying the report “should never have been required in the first place”.
“Instead of closing regional bases, Qantas should be investing significantly more in rural and regional transport connectivity, including through retaining these regional bases,” he said.
“Over recent past decades, Qantas has been the recipient of billions of dollars in financial support and bailouts from the Australian taxpayer.
“In this context, it is understandable the Australian people demand a return on this investment in the form of reliable and convenient services, and are justifiably angry when the apparently poor management decisions of Qantas’ leadership results in the termination of jobs, the upheaval of whole families, the closure of regional bases and—potentially—a reduction in the quality, timeliness and convenience of Qantas’ rural and regional air services.”
In a statement, a Qantas spokesperson told Australian Aviation that most affected employees offered roles in other locations had taken up offers.
“[The support package] is well beyond any requirements as part of their agreement and enables them to commute for work, like many other team members already do,” the spokesperson said.
“Wherever possible, we have worked with impacted team members to tailor the support packages around their individual circumstances.
“We remain committed to regional Australia and continue to invest in our regional operations through our extensive fleet renewal program and network expansion, including the recent launch of flights from Hobart to Perth and Newcastle.
“We continue to work with the Committee as part of the ongoing inquiry into the challenges of regional aviation in Australia.”
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says:A regional base must have a high schedule base to warrant its existence otherwise they will have negative effects on aircraft ops ground staff and crewing. I recognise that some staff will be upset with the decision to close the bases but unfortunately this is the type of commercial world we live in today, one could also ask, why were they opened in the first place?