Multi-employer bargaining would have killed Jetstar, Joyce claims

Melbourne, Australia - October 27, 2015: Jetstar aircraft on the tarmac at Melbourne airport. Various small vehicles also visible. Jetstar is a subsiduary of Qantas.

Qantas CEO Alan Joyce spoke at the American Chamber of Commerce recently where he said that multi-employer bargaining would have made it impossible to launch a business like Jetstar.

Joyce warned that the reintroduction of multi-employer bargaining would hamper innovation and “take us back to the 80s.”

This comes as legislation will be introduced to the House of Representatives by the Albanese Government in support of multi-employer bargaining aimed towards fostering wage growth for workers. This legislation has received support from the Transport Workers Union (TWU).

Joyce said that efficiencies that allowed Jetstar to introduce prices for as low as $35 “changed the aviation market.”

“We did set up Jetstar with the aim of democratising air travel and allowing millions of people to travel for the first time,” Joyce said.

“If there was multi-employer bargaining at the time, I’m not sure that would have happened, and a lot of other things wouldn’t have happened.”

The new laws aim to focus on low-paid industries and will attempt to boost the potential for workers to strike on behalf of those employed at other businesses.

TWU secretary, Michael Kaine, told The Australian that multi-employer bargaining should include the right for workers to strike or companies will reject workers’ demands for better conditions and pay.

“It’s not about an uncontrolled upward spiral of wages and conditions,” Kaine said.

“It’s about saving the economy from complete fragmentation where workers have no power (and) where the companies that engage them have no commercial power to dictate their future.

“That’s not good for economic growth. It’s certainly not good for making sure workers are getting a share of the economy.”

This follows three major unions coming together earlier this month to criticise Qantas’ 1 per cent wage increase for workers, calling it a “PR stunt.”

The TWU, Flight Attendants Association of Australia (FAAA) and the Australian Services Union (ASU), described the raise as “negligible” and said its members were “severely fatigued.”

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alan joyce albanese government American Chamber of Commerce australian services union Flight Attendants Association of Australia jetstar Michael Kaine Multi-employer bargaining qantas Transport Workers Union twu