Hundreds of local jobs are in jeopardy following the shock announcement of the closure of Jetstar’s maintenance base at Newcastle.
Around 200 workers at Williamtown, including 112 engineers, will feel the pinch of the closure.
Member for Shortland Pat Conroy says the news has devastated many Hunter workers and their families.
“It’s also disrespectful and unacceptable that Jetstar management informed their staff over a pre-recorded message that didn’t allow them to ask any further questions,” Mr Conroy said.
The airline will be moving its deep maintenance operation from Newcastle to Melbourne; Jetstar saying apprentices will have the opportunity to be redeployed to the airport there.
It’s part of a broader Qantas cut, with the flying Kangaroo slashing 6000 jobs across the board today.
15,000 workers will also be stood down until at least the end of the year.
Only 27% of the company’s employees are expected to return to work by the end of July, and if international travel returns 72% of their workforce should be back by midway through 2022.
CEO Alan Joyce this morning labelled coronavirus the worst crisis the aviation industry has ever faced.
Mr Joyce also confirmed he had discussed support measures with Prime Minister Scott Morrison and Treasurer Josh Frydenberg ahead of JobKeeper wage subsidies ending in September.
“It does help for them to know the size of the Qantas issue, what we think is going to happen to inform them on the decision they’re making on JobKeeper and alternatives,” Mr Joyce said.
The company will consult with the relevant unions on the proposed job losses, spanning across the following areas of Qantas and Jetstar:
- Non-operational – at least 1,450 job losses, mainly in corporate roles, due to less flying activity.
- Ground operations – at least 1,500 job losses across airports, baggage handling, fleet presentation and ramp operations due to less flying activity.
- Cabin crew – at least 1,050 job losses due to early retirement of the 747s and less flying activity. A further 6,900 cabin crew will be on stand down from July 2020 onwards.
- Engineering – at least 630 job losses due to 747 retirement, less flying activity (particularly of the wide-body fleet) and redistribution of work from Jetstar’s Newcastle base to make better use of existing maintenance capacity in Melbourne.
- Pilots – at least 220 job losses mostly due to early retirement of the 747s. A further 2,900 pilots will be on stand down from July 2020 onward.
Additional reduction in total roles will result from contractors, particularly in corporate areas such as IT, not returning.
Qantas says the staggered return and job cuts allows it to preserve as many other jobs as possible in the long term, and it’ll respond faster if recovery timelines improve.
Scott Morrison expressed deep regret about the cuts, saying Qantas employees were passionate about the company, but defended the “extraordinary” efforts of the airline amid a global pandemic.
“I extend my deepest regrets (to the employees) over what has had to be announced today,” Mr Morrison told a press conference this morning.
The government was “continuing to do everything we can” to support the aviation sector, he said, both with Qantas and other carriers.
Labor says the Government has spent the last few months ignoring the structural problems in the aviation industry.
Catherine King, Shadow Minister for Infrastructure, Transport and Regional Development said “Scott Morrison must stop delaying the review of JobKeeper and give workers and businesses alike the certainty they need to plan beyond the September ‘snapback’ deadline.”
“Aviation workers are being left out and left behind by the Morrison Government’s botched handling of JobKeeper and the lack of a plan for the aviation sector.”
