19 June 2008

Qantas strike brings stocks to 52 week low

More than 1000 Qantas engineers are expected to walk out of work for four hours next week in protest to the Australian airline's refusal of a 5% wage increase. The company had agreed to a 3.7% wage increase and work conditions had been accepted by the employees at the negotiations, but the meeting was interrupted when Qantas found out that the engineers were planning a strike.

Qantas' refusal of a 5% wage increase is very much down to increasing oil prices, which will count as 1/3 of the company's expenditure this year, and has caused them to ground flights, cut routes, and even reduce jobs.

Despite the planned strikes and walkouts, the safest airline in the world has stated that they will reschedule their flight plans and get all their customers to their destination on their day of travel. But is Qantas putting its reputation as the safest airline on the line with this refusal? "Qantas engineers are committed to the airline and have campaigned hard to maintain high safety standards, but by driving down wages and conditions, Qantas is putting its international reputation at risk", stated the federal secretary of the workers' union (BBC).

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