The Transport Workers’ Union has called off strike action that threatened to disrupt up to 30 airlines from Monday after major baggage handling supplier Dnata agreed to lock in a 4.6 per cent pay rise next year.
Dnata, owned by the UAE-based Emirates, has also agreed to back pay staff a 12.6 per cent increase to account for the years since its prior industrial agreement with workers in 2020.
Dnata has about 1700 workers in Australia, providing services to 30 airlines at six airports. Louise Kennerley
The end to threats of strike action of up to 24 hours will come as a relief to international carriers that rely on Dnata to manage below-the-wing work, such as Qantas International and Singapore Airlines, and their travellers.
TWU national secretary Michael Kaine said workers were “thrilled to have locked in greater financial security and the possibility of converting casual and part-time roles to secure, full-time positions”.
“Overworked ground staff needed a fair deal that would sustain them and their families so that they could remain in the industry. By standing strong together, they achieved it,” he said.
Dnata Australia boss Burt Sigsworth said he was pleased to have reached an agreement “despite a challenging business environment”. Dnata has about 1700 workers in Australia, providing services to 30 airlines at six airports.
“We will continue to invest in engagement with our people and this is a continuation of our journey to elevate our employee value proposition and be an employer of choice in Australia,” Mr Sigsworth said.
“We will continue to invest also in infrastructure and equipment to deliver consistent quality and safe services for our partners and their customers, supporting the restart of Australian aviation.”
The union and the company will be back at the bargaining table next year for when this new agreement expires. The 12.6 per cent back pay is made up of a 4 per cent increase in 2020, 4 per cent in 2021, and 4.6 per cent in 2022.
Mr Kaine said disruption at the airports would continue until “we regain the levels of training and experience the industry has lost”.
“Aviation needs a circuit breaker to rebalance the power from overpaid executives making decisions to line their own pockets, and ensure good, safe and secure jobs are prioritised,” Mr Kaine said.
“We’re calling on the federal government to establish a Safe and Secure Skies Commission to deliver quality service standards for the Australian travelling public.”
The pay deal comes in the same week that the TWU raised safety concerns at another baggage handling supplier, Swissport, saying internal memos showed the reported incidents included cargo doors being left open and firearms unloaded on arrival carousels.
Meanwhile, Qantas passengers overnight were escorted through Melbourne Airport by armed federal police after a security error meant some on the flight were not properly screened at Sydney Airport.
A Qantas spokesman said the step was taken as a precaution.
“All passengers on QF487 were escorted from the aircraft when it landed in Melbourne and taken through the screened part of the airport into the unscreened area,” a spokesman said.
“Thereby avoiding compromising the secure section of the Melbourne terminal, which would have required all passengers who had already been through security to be screened.”
“We will investigate to understand how this incident occurred, and we apologise for any inconvenience to passengers on the flight.“
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