Negotiation in Qantas: Trade Union Dispute and Conflict Resolution Strategies

In this report we will discuss about negotiation and below are the summaries point:- Qantas airline: Established in 1921, with a dominant market share in Australia and a fleet of 146 aircraft. Negotiation dispute: Qantas offered a cash bonus to frontline staff, conditional on signing a new wage agreement, leading to trade union claims of bribery. Conflict resolution: Communication, interest-based negotiation, and mediation recommended for addressing the conflict between Qantas and the trade union.

Negotiation
Page | 1

Qantas airline was established in the year 1921 in Australia. Its biggest market is Australia with
65 percent of market share, it operates in 41 regions, there are 146 fleets owned by the brand that
runs on both national and international boundaries. 33,625 employees are working with the brand
and helping in making strong market presence with 15 percent of total travellers from local
market. There is long history of trade union issues in Qantas.
Recently according to announcement states those workers get extra payment of $2000 cash
performance bonus plus $500 travel voucher for its 27000 frontline staff. However, soon it was
stated that worker were only eligible to get cash bonus if they signed the new wage agreement;
therefore trade union claim this bonus as bribe to employee and it would make them work
harder. According to agreement provision any employee or their colleague if harm Qantas, entire
group loses eligibility for bonus (Hatch, 2018).
According to company management perspective if was disappointing that union rejected that
bonus as it include proposal for annual wage increase of 3 percent. However, union is upset with
the clause of collective punishment of one or two colleagues. To deal this negotiation process,
union has written application to fair work commission, stating to address EA negotiation and
LAME pay structure quotas.
Conflict negotiation is practiced everywhere in all industries, organization and region.
Communication plays key role in negotiation management, it include verbal and non-verbal cues.
It must be in align with type of conflict, which can be interest, needs, right, power or
miscommunication (Cheldelin, 2003). Even power can be used to resolve conflict, here interest,
wants and needs of both the parties involved in the conflict negotiation process. It is common
process used to address management and trade union issues. For example, in Qantas employees
Page | 2

have issues with bonus, pay structure so Australian fair work practices operate as a mediator
between two and uses authority to address the issue. Another method of addressing conflict is
legal power, involve use of law and practice to address the conflict; under litigation decision is
taken by judge and parties have to accept the same. However, this is last method to be used in
negotiation process; firstly mediation, persuasion interest etc. must be implemented (Maiese,
2004).
It is recommended to use interest power in this negotiation as it is a collaborative method and
aims to provide benefit to all parties involved. It involve adjustment by all parties at some level,
helps in maintaining long term relationship and win-win situation.
BATNA strategy comes under power conflict negotiation technique; best alternative to a
negotiated agreement decides when an unfavorable proposal can be denied. Qantas action pulled
negative comment from authorities, it is being considered as lack of respect and fair treatment to
employees (etunational.asn.au, 2018).
It is advice that Qantas should opt for mediation technique with face to face conversation with
trade union. Proper conflict resolving require active listening by management, stating interest,
needs clearly to understand each other’s expectations, negotiation must be done in a constructive
tone by respecting and acknowledging perception of parties involved.
Page | 3

Bibliography
Cheldelin, S. (2003). Conflict: from analysis to intervention. London: Continuum International Publishing
Group,.
etunational.asn.au. (2018, September 24). Qantas workers' 'bogus' bonus. Retrieved Jan 21, 2019, from
etunational.asn.au:
https://www.etunational.asn.au/qantas_workers_call_for_better_fairer_bonus_after_bosses_p
ocket_millions
Hatch, P. (2018, September 18). Qantas staff would lose $2000 'bonus' if team member steps out of line.
Retrieved January 21, 2019, from smh.com.au:
https://www.smh.com.au/business/companies/qantas-staff-would-lose-2000-bonus-if-team-
member-steps-out-of-line-20180917-p5048t.html
Maiese, M. (2004). Interests, Rights, Power and Needs Frames. Boulder: University of Colorado.
Qantas Airways Limited. (2011). Our Company. Retrieved January 21, 2019, from www.qantas.com.au:
http://www.qantas.com.au/travel/airlines/company/global/en
Page | 4