Australia's Qantas braces for turbulent showdown

Top management and furious staff of Australia's beleaguered national airline Qantas were on course for a turbulent public showdown Friday, as a fresh strike wrought havoc for up to 10,000 passengers. The latest in a series of rolling strikes, this time by ground staff, was timed to coincide with Qantas' annual general meeting, which will take place under extraordinary security following death threats to senior management. Police, extra security and even airport-style metal detectors were reportedly deployed around the meeting in Sydney, with neither the unions nor the airline looking set to concede a point. Qantas chief executive Alan Joyce said the unions' demands put the survival of the airline at risk in a competitive international business environment in which airlines are struggling globally. "The union demands from these trade unions are so outrageous that they will risk the future survival of Qantas," he told commercial television. "Qantas has been around for 90 years but it's changed, it's adapted to be flexible, unions would like us restricted in what we can do." Angry staff were expected to confront Joyce at the annual general meeting over a pay dispute and the airline's plans to set up a new airline in Asia, sparking fears of layoffs of workers in Australia. Three workers' unions are enraged about Qantas' plans to restructure its international business by setting up a new premium airline in Asia, a move that will see 1,000 jobs axed. They want guarantees on wages and job security. Joyce said about 10,000 passengers would be delayed throughout Friday as a result of the one-hour strike, with the airline cancelling 70 flights as baggage handlers, catering workers and other ground staff walked off the job. "We urge the unions to stop this, to put to the table more realistic demands and to think about the jobs they're endangering around the country," he said as the one-hour work stoppage got underway. "We've always said we want to do anything that will stop this disruption happening to our passengers -- again I apologise to those customers that have been impacted by this." Workers have vowed to collar Joyce and the board at the meeting over his proposed massive 71 percent pay package increase to Aus$5.0 million ($5.2 million) that was announced just as the airline revealed its restructuring plans. The Australian Licensed Aircraft Engineers Association (ALAEA) said engineers would demand the board address the hypocrisy of handing out massive pay rises to executives while putting jobs at risk through offshoring. "Engineers, like many other employees at Qantas, can't understand why plans to offshore jobs and sack 1,000 people are being rewarded with cash bonuses and fat pay cheques to the CEO and management," ALAEA federal secretary Steve Purvinas said in a statement. "It reeks of hypocrisy, and that is what we will be protesting at today's AGM."