21 days of compulsory negotiations between unions and company to follow. I will be interested in the outcomes!

What the unions want:

Transport Workers Union:  5 per cent pay rise per year, with an additional 1 per cent in superannuation (pension payments) protected against a rise in CPI.

The Australian and International Pilots Association:  2.5 per cent pay increase, each year, for three years

Australian Licensed Aircraft Engineers Association : 5.33 per cent pay rise to cover wages plus additional allowances, every year, for three years.

This, however, is not what the real issue is about.

Qantas announced recently the creation of two new subsidiaries; Jetstar Japan and Qantas X a new Asian based premium airline. These moves translate into an outsourcing of jobs from Australia to Asia. This will bring a reduction in labour costs for the airline.  This is what the unions are  all united against and for which they have had a rolling campaign of industrial action since August. The unions are actually asking that all new Qantas employees will have reciprocal conditions as Qantas Australia employees. This defeats the whole idea of the new subsidiaries.  The unions have also asked for job security guarantees for employees of any Qantas subsidiary businesses.

There is no way Qantas will agree to that. Hence why Joyce played the heavy handed card last week. He need to get the two subsidiaries set up fats with no impairment.

I am going to watch the negotiations with interest.