ECON351 Report: Causes and Resolution of Qantas Industrial Conflict

This report provides a comprehensive analysis of the 2011 Qantas industrial conflict, focusing on the dispute between the airline management and its trade unions. It explores the causes of the conflict, primarily the disagreement over the new enterprise agreement and issues related to working conditions and potential job losses due to expansion. The report identifies key stakeholders, including engineers, pilots, baggage staff, management, and passengers, and examines their respective roles and positions. It details the timing of the conflict, the shareholder values involved, and the relevant legislative framework, particularly the Fair Work Act 2009 and other employment acts. The report further discusses the industrial actions taken by both sides, including strikes and lockouts, and their impact. Finally, it delves into the methods used to resolve the conflict, offering insights into the strategies employed to reach a resolution and mitigate the negative consequences of the dispute.

Employment
relationship report

Executive Summary
Conflicts are often arise when opinions, thoughts of individuals contradict with each
other. There is a great conflict issue arises in Qantas airlines in the year of 2011 between trade
unions and management of airlines due to contradiction on enterprise agreement. There is a lot of
legislations have been formulated in order to deal with conflicts effectively. Further, there is
requirement to undertake appropriate actions to resolve conflicts in significant manner

Table of Contents
INTRODUCTION.......................................................................................................................................4
Main Body:..................................................................................................................................................4
Description of Conflicts..............................................................................................................................4
Causes of Conflict...................................................................................................................................4
Stakeholders involved:............................................................................................................................5
Timing of the issue:.................................................................................................................................5
Shareholder values and position:.................................................................................................................5
Legislative Framework................................................................................................................................6
Industrial actions.........................................................................................................................................7
Resolution of Conflicts:...............................................................................................................................8
CONCLUSION.........................................................................................................................................10
REFRENCES............................................................................................................................................11

INTRODUCTION
Employees are crucial stakeholders of business so it is imperative to maintain good
relationship with them for ensuring growth and success of business. It is often seen that conflicts
arise between among employees due to contradiction in their thoughts, opinions (Jacoby, 2018) .
Conflicts may create ambiguity at work place which is harmful for existing brand image of
company. In the current report Qantas conflict issue has been discussed which arises in 2011 in
Australia. It was a series of disputes between Qantas airlines of Australia and trade unions. It
took place due to disputes between both the parties over new enterprise agreement. The report
includes cause, timing of conflict along with stakeholders involved in this. It comprises values as
well as positions of stakeholders. Further, legislative framework has also been included in the
following report. Apart from this, it includes industrial actions as well as resolution of conflicts
for further betterment.
Main Body:
Description of Conflicts
Causes of Conflict
Conflicts generally arises due to difference in thoughts, opinions of individuals. In
organization, conflicts took place due to unfavorable working conditions, poor payment and
other such factors. Sometimes, it also happen that managers and employees does not have
consent on the same concept thus dispute arise which may hamper overall image of company in
market. In the present scenario, payment as well as working conditions was the crucial reasons of
conflict. There is great argument between trade unions including engineers, baggage as well as
catering staff and Qantas airlines. This conflict between both the parties nearly affected 80, 000
passengers as due to this a lot flights got cancelled (Hutchison, 2016). So, the main reason of
conflict was disagreement between both the parties which are airlines and trade unions. It is
stated that Qantas airlines also looked forward to expand services in Asia which caused several
job losses within country. It is also stated that working condition within airlines was also poor so
employees was not able to work there for longer run. The trade union took a lot of industrial
actions such as strike, protest and more which caused higher inconvenience to passengers

worldwide. These industrial actions caused huge damage to airlines which was not easy to
recover. Therefore, there were ample of causes due to which conflicts arise and it needed to
manage in an efficient manner for further improvement.
Stakeholders involved:
Stakeholders refer to those individuals who have great interest in business. They affect
operations of organization in significant manner and also get affected with activities of business.
There are several crucial stakeholders of business such as managers, owners, employees,
customers, investors and more. It is vital to considered well being of stakeholders while taking
decisions related to company. Employees work for betterment of organization and make
optimum use of resources so that company can grow and prosper. Further, managers manage all
the activities of business for attaining predefined goals. In addition, customers are considered as
source of revenue for running business. In context of Qantas conflict major stakeholder who was
involved in the case are engineers, pilot, baggage staff, management and passengers. In this, two
major parties who involved in whole dispute were management of airlines and trade unions.
Here, trade unions which involve engineers, points and baggage staff undertake industrial actions
regarding improvement in working condition and payment. For this, they stopped work which
caused inconvenience to passengers. There were nearly 600 flights of Qantas got cancelled
during dispute which affected ample of passengers at global level (Henningham, 2017). In
addition, investors also get affected due to higher fluctuation in market share of Qantas.
Therefore ample of parties involved in dispute which get affected with the outcomes of industrial
actions taken during the dispute.
Timing of the issue:
It is stated that Qantas dispute arise during late 2010 when bargaining arise between
Qantas Airlines and its trade union on new agreement. Gradually, it converted in great dispute
and in 2011 nearly 447 flights got cancelled. Also, nearly 3000 staff members of airlines got
locked out to control the protest. However, the conflict rose in 2011 but its impacted remain over
prestige over Airlines for longer run.

Shareholder values and position:
It is analyzed that shareholders are vital part of organization as they put ample of efforts
for betterment of business. In this, employers as well as staff members are included who prepare
a lot of strategies for ensuring growth & success of business. There are some representatives also
work on behalf of staff members & employees. Here, trade unions work for protecting the
interest of employees. Trade unions are formulated to prepare appropriate norms as well as
guidelines for protecting staff members. They ensure proper payment as well as working
conditions for employees. In addition, state authorities also formulate some necessary laws,
guidelines as well as standards which need to follow by both employers and staff members
(Wilson, 2016).
It is stated that Qantas was losing market share so wanted to explore in international
market which will bring several changes in current operations and also create job losses. So,
trade unions undertake industrial actions such as strike, protest and more. They wished to get
better working conditions as well as wages. But in return, Qantas airline locked some of its
employees who were involved in industrial action. It was against of fair work act 2009 thus
higher authorities also supported union and took necessary actions for handling situation in better
manner. This dispute not only caused harm to management and staff but also caused a lot of
problems for passengers who are major stakeholders of business. For managing situation, state
took immediate action by making an application of fair work Australia to maintain fair
conditions at work place. As per fair work association, the decision taken to stop industrial
actions immediately as it might cause a lot of damage to economic conditions of country,
Further, it will also harm tourism and travel industry within nation. So, there were a lot of
stakeholders involved in conflicts which have different positions as well as values. Management
have their own reason for locking out employees. On other side, trade unions undertake
necessary industrial actions for getting dignified working conditions as well as justifiable wages
in return of their efforts for betterment of company.
Legislative Framework
It is analyzed that legislation refers to the rules and regulations which are formulated to
keep proper control over activities and manage business in an efficient manner. Legislation made
by government authorities so that business can be manage effectively. In addition, government

also makes necessary amendments in existing laws by including new guidelines and norms. In
the present scenario, there are a lot of legislations have been considered which are mentioned as
under:
Fair Work Act, 2009: This law is related to fair working practices within organization
which was passed by Australian government in the year of 2009. Maia aim of this act is to
provide workplace rights to employees, right to get engage in industrial action, as well as right to
be free from discrimination (Mori, 2020). As per fair work act, there are a lot of rights have been
provided to employees such as they can become a part of any industrial association, trade union
and employer association. This law also protected employees from discrimination which is
caused due to color, race, gender, creed and more. Also, it is considered as unlawful action of
employer to discriminate staff members on the basis of different factors. Thus, this act is related
to providing fair working condition to employees so that they can work in better manner for
attainment of goals and objectives.
Employment Rights Act, 1996: This act was passes by government of UK to protect
rights of employees at work place. As per this act, all the necessary terms and conditions of
employment should be in written form and provided to employees within two months of starting
employment. Main aim of this written document is to guide employees about their rights so that
they can take necessary actions as required. Also, this act comprises clauses related to leaves,
working hours and more (Muszyński, 2020). So, this act includes all the aspects related to
employment such as study, training, termination. It also renders protection of wages & payment.
Further, there are also provisions to undertake necessary legal action in against unlawful
practices of employers.
Employment Act 2002: This act introduced some new standards in term of discipline
process foe employers. This act also eradicates difference between contracted and permanent
employees. In addition, it also includes different laws related to leaves, payment of wages and
more. There are ample of legal procedure which may undertaken by employees also formulated
under this act.

Industrial actions
Here, a lot of industrial actions took by during Qantas conflicts. These industrial actions
taken by three trade unions such as engineers, pilots, and baggage staff members. Under this,
they protest a lot and also damage property of airlines. They undertake strikes which affected
operations of Qantas airline. These activities caused huge losses to airline as they have to cancel
a lot of flights. In 2011, due to huge protest of employee’s airlines has to take serious step as
locking out of employees to control the situation (Regalia, 2020). It is stated that industrial action
taken by employees caused inconvenience to passengers globally. It is analyzed that industrial
action which was undertake during Qantas conflict was result of collective actions. This
industrial action occurred due to enterprise bargaining between management of Qantas airlines
and three trade unions having traditional membership such as international pilots association,
transport worker unions and Australian aircraft engineers association. So, there were a lot of
parties including international association also included in the industrial action which make it a
collective efforts of all individuals.
It is monitored that actions taken by trade union was defensive as it resulted disagreement
between airlines and trade unions over working conditions and payment. Management of Qantas
airline took some steps such as expansion of business in international market which may create
job losses for current work force. So, the protest, damage, strike done by employees was result of
defensive action. On other side to minimize the damage and control situation, management of
Qantas also locked out staff members as a defensive action so that they did not caused more
harm to property of airlines. In this, industrial action taken by both the parties is not legal as due
to actions of staff members passengers faced a lot of difficulties and constrains. Due to protest,
they harm the property of airlines because of that nearly 600 flights got cancelled and passengers
faced great hassle. In return, the action taken by airlines of locked out employees was also not a
legal attempt. It was against of several legislations such as fair work act 2009, employment act
2002, employee’s right act and more (Singer, 2018). These industrial actions have a lot of
negative impact. Due to this, airlines faced huge damage of property. It also affected operations
of airlines in adverse manner. Due to the industrial action, several flights got cancelled which is
caused great problem to passengers. Therefore, there were a lot of adverse impacts generated
through the industrial action of Qantas conflict.

Resolution of Conflicts:
There are a lot of ways used to resolve conflicts between two parties. Here, it is vital for
both the parties to depict consent on a particular point by which they both can meet with their
respective needs and requirements. It is analyzed resolving conflicts is imperative for ensuring
betterment of organization. For this, all the concern parties need to have a proper communication
so that they get to know needs, requirements of each other which will eventually help to cope up
with conflicts in best possible way (Wilson, 2016). In Qantas airline conflicts, fair work
association played a crucial role in managing the issue in an efficient manner. Here, fair work
association go for arbitration process by handing situation in such a manner which is favorable
for both the parties. It is stated that no party no party is specifically considered as looser in the
situation. Here, main demand of trade union was related to working condition, fair work
treatment, pay and more. So, Fair work association were agreed over the demand. For this,
Airlines announced 3 % hike in annual payment of employees. In addition, they also agreed to
improve existing working condition. But, there were some demands such as limiting the use of
labor hire workers in bagged, 20 % cap were unreasonable. So, these rejected by fair work
association. With the resolution of conflict, Qantas allowed to work at international level. It
allowed them to work peacefully to earn substantial profit margin. So, the situation was handled
by negotiation between both the parties over terms and conditions. Qantas airline agreed on some
reasonable demands of employees such as increase in pay, better working condition, job security
and more. By this way, the conflict got resolved which allowed airlines to again work in
international market. Now, they can easily compete at competitive market place at global level.
So, there were no requirement of any new agreement as conflict resolved by having proper
negotiation between both the parties. This will bring new opportunities of growth and success for
company (Wright and et. al., 2016)
.

CONCLUSION
Out of above discussion, it is summarized that employees are one of the crucial
stakeholders of business. Manages as well as employees both are two important parties of a
company who work for ensuring future growth and success of company. Discussion has been
carried out regarding well known Qantas Conflict which took place in 2011 between trade unions
and management of airlines. It is concluded that ample of industrial action such as protest, strike,
locked out and more undertaken during conflict. Here, both the parties could handle the conflicts
peacefully rather presenting industrial actions. There are also some positive aspects of this
conflict such as transparency between union and management, increasing in wages and
improving in working condition for employees. It is analyzed that both the parties were involved
in negotiation where airlines got agreed on most of demands of trade unions so that airline can
operate its business successfully with the assistance as well as support of employees.

REFRENCES
Books and Journals
Furlong, G.T., 2020. The conflict resolution toolbox: Models and maps for analyzing, diagnosing,
and resolving conflict. John Wiley & Sons.
Henningham, S., 2017. Whitlam and Australia’s relations with France, 1972–75: conflict and
cordiality. History Australia, 14(3), pp.414-428.
Hutchison, J., 2016. The state and employment relations in the Philippines. Journal of Industrial
Relations, 58(2), pp.183-198.
Jacoby, S.M., 2018. The embedded corporation: Corporate governance and employment relations
in Japan and the United States. Princeton University Press.
Mori, A., 2020. Employment relations in outsourced public services: Working between market
and state. In Employment Relations in Outsourced Public Services (pp. 1-29). Palgrave
Macmillan, Cham.
Muszyński, K., 2020. Liberalizaton Without Major Reforms: The Destandarization of
Employment Relations in Central Eastern European Countries. In News Forms of
Employment (pp. 53-78). Springer VS, Wiesbaden.
Regalia, I., 2020. Prospects for Employment Relations: Between Informal and Formal and Inside
and Outside. In Regulating Work in Small Firms (pp. 205-236). Palgrave Macmillan,
Cham.
Singer, L., 2018. Settling disputes: Conflict resolution in business, families, and the legal system.
Routledge.
Wilson, K., 2016. Gone With the Wind?: The Inherent Conflict between API/PNR and Privacy
Rights in an Increasingly Security-Conscious World. Air and Space Law, 41(3).
Wright and et. al., 2016. Conclusions: beyond varieties of capitalism, towards convergence and
internationalisation?. In International and Comparative Employment Relations: National
Regulation, Global Changes (pp. 341-361). Allen & Unwin.