Pilots' union challenges Qantas restructuring in NZ

A restructuring of services in New Zealand by Australian airline Qantas is being challenged by the New Zealand Air Line Pilots Association, which represents pilots.

Qantas announced in February that from June 10, its budget airline Jetstar will fly New Zealand domestic services and Qantas' New Zealand subsidiary Jetconnect will cease domestic flights.

Qantas is also changing its trans-Tasman services and flights to the United States from Auckland, increasing frequency and improving connections.

The association said it would seek an injunction in the Employment Court next Tuesday to stop the closure of the Jetconnect base in Christchurch.

It would also seek a declaration and penalties against Qantas and Jetstar.

The association said the Employment Relations Authority had ruled that the matter should be heard by the Employment Court.

A Qantas spokesman said the company was disappointed that mediation could not resolve the issue. "Jetconnect's employment levels will increase to support the new Tasman schedule," Qantas said.

Qantas declined to comment further ahead of the court hearing.

Pilots' association executive director Rick Mirkin said he could not say what impact the injunction, if granted, would have on the start of Jetstar's domestic services.

Mr Mirkin said this was another attempt by an airline to reduce pay and conditions for staff by employing them under a different subsidiary.

Mr Mirkin said the changes constituted a business restructuring and under New Zealand law prior consultation with staff was required.

"They have breached the Employment Relations Act and breached the Jetconnect pilots' contract by failing to consult with us about these changes." It took three years to achieve a collective agreement with Jetconnect for pilots.

"We are not terribly pleased about setting it aside in favour of a new low-cost operator with the cheapest pilots they can find anywhere in the world on individual agreements that are very oppressive," he said.

Jetstar intends to use the facilities previously used by Jetconnect in Christchurch for domestic services.

Nineteen pilots employed by Jetconnect in Christchurch have to move to Auckland.

The association believed Qantas was trying to use New Zealand as a base for cheap labour because New Zealand and Australia have an open skies agreement.

"I think there is every chance that Jetstar will expand and use their New Zealand base to fly services through Australia to other foreign ports," he said.