Qantas engineers cancel industrial action

Qantas engineers have temporarily called off their industrial action in a challenge to the airline to resume its full flight schedule, Australian Associated Press (AAP) reported. But the national carrier still faces disruptions with baggage handlers, ground staff and catering employees planning to walk off the job next week. Even after negotiations with Qantas stalled in a closed-door mediation at Fair Work Australia on Thursday, the Australian Licensed Aircraft Engineers Association cancelled its protected industrial action for three weeks, with federal secretary Steve Purvinas saying the "ceasefire" should see all grounded planes return to the sky. Five aircraft have been grounded and an estimated 60,000 Qantas passengers affected by a series of rolling strikes by engineers and ground crew. "What we've effectively done today is given Qantas three weeks to pull their heads in, to start telling the truth about the groundings of these aircraft and hopefully an opportunity to bargain an outcome to this dispute," Purvinas told reporters in Melbourne. "We hope during this time Qantas are able to get those aircraft back in the air, but we doubt very much that Qantas grounded those aircraft due to industrial action in the first place. "If those aircraft aren't flying, we will know you weren't telling the truth all along." Qantas said on Thursday the engineer bans have created such a backlog of work that two more planes will be grounded on Friday, taking the total of grounded aircraft to seven. Spokeswoman Olivia Wirth said the three-week postponement offered no certainty to the airline or its passengers. "The real damage has already been done. Qantas has already had to ground seven aircraft and cancel 500 flights as a direct result of the industrial action by the union which has been ongoing since August," she said. "The one and only reason why we have cancelled these flights is because the union's industrial action caused a significant backlog of maintenance." The engineers will forgo planned overtime limitations as part of the postponement, but Purvinas warned action would resume if Qantas did not improve its offer. He said job security was the main sticking point between the two parties, with the union fearful maintenance jobs will be moved to Asia. "The wages outcome has already been settled at a three per cent pay rise per annum. We believe the only outstanding matters relate to job security," he said. Workplace Relations Minister Chris Evans has urged Qantas to resolve differences with staff about job security, stressing there was distrust over the prospect of more jobs going offshore. Senator Evans said the union decision was "a bit of a peace offering" and hoped it would prompt a genuine breakthrough. Mediation will resume between the parties in Sydney on Tuesday. Despite the reprieve from engineers, Qantas still faces disruptions with baggage handlers, ground staff and catering employees planning to walk off the job next Tuesday and Wednesday. Prime Minister Julia Gillard has urged unions and Qantas to resolve the dispute and said she is concerned about the impact on the economy. "My message remains to the parties: Get around a table and get this fixed," she told reporters in Queanbeyan on Thursday. Flight Centre and online booking agent Webjet have criticised Gillard for not stepping in herself while Flight Centre managing director Graham Turner said the government needed to stop unions taking advantage of Qantas.