Qantas has notified around 2,000 employees that it will move to outsource ground handling operations at ten airports across Australia.
The decision comes as the flag-carrier works to recover from the Covid-19 crisis.
In August, the airline announced its reasons for needing to restructure its ground handling operations, which includes baggage handling and aircraft cleaning, and commenced a review of external bids from specialist ground handlers and in-house bids from employees.
The Transport Workers Union (TWU) submitted a bid to keep the service in-house on behalf of employees in accordance with terms in the enterprise agreement.
However, the bid was, by their own admission, “theoretical” with no roadmap of how projected cost savings would be achieved.
It also did not meet the objectives relating to capital expenditure on ground services equipment nor matching the ground handling services (and their cost) to fluctuating levels of demand, the airline said.
While proposals from employees at various ports did include detailed plans that would save around $18 million, there remained a significant gap compared to what was offered by third party providers.
A number of external bidders, some of whom already provide these services at 55 airports across Australia, were able to meet