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🇦🇺 Australia /Economy & Trade

Jetstar's record profits fuel pay fight over 'rock bottom' wages

From ABC Australia · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Jetstar reported record profits of $492 million in the six months to December, a 12% increase year-on-year.
  • Around 900 airport operations workers are seeking pay parity with Qantas, arguing their wages have fallen to award rates and are not keeping pace with the cost of living.
  • The airline stated negotiations are ongoing, while also introducing new fees for passengers, such as for overhead locker access.

Jetstar's record $492 million profit in the six months to December has ignited a pay dispute, with nearly 900 airport operations workers demanding wages comparable to their parent company, Qantas. The Australian Services Union (ASU) reports these workers are effectively paid at award rates after their enterprise agreement expired and the Fair Work Commission's annual wage increase surpassed their current pay.

We're continuing to meet regularly with the ASU to progress negotiations … that includes pay increases, while continuing to deliver low fares to our customers.

— Jetstar spokespersonResponding to the pay dispute and ongoing negotiations.

An ASU survey revealed the financial strain on these employees, with 96% stating their wages fail to keep pace with living costs. Over 70% have reduced essential spending or taken on extra shifts, and nearly a third have incurred debt. "This is the first time in 15 years we've hit rock bottom with our wages," said Emma, a Jetstar customer services officer with over a decade of experience. She noted that wages have "slowly been eroded," particularly in the last four years, forcing her to cut back on her children's activities and postpone household expenses.

This is the first time in 15 years we've hit rock bottom with our wages.

— EmmaA Jetstar customer services officer describing the impact of wage erosion.

Jetstar maintains that negotiations are progressing. A spokesperson stated, "We're continuing to meet regularly with the ASU to progress negotiations … that includes pay increases, while continuing to deliver low fares to our customers." However, the airline recently announced new passenger fees, including charges for overhead locker access starting next year, which travel agent Lynton Jones described as a "money grab."

It's really disappointing to see that over time that has just slowly been eroded, particularly in the last four years.

— EmmaDescribing the decline in her wages over time.

Industrial relations academic Troy Sarina noted that lower pay at budget airlines is common as a market differentiator. However, he questioned how Jetstar's substantial profits should be shared with employees, stating, "There is a deliberate choice that needs to be taken … to what degree are those profits shared?" The dispute covers customer service staff, baggage handlers, and tarmac crew, who typically earn $29.45 an hour.

There is a deliberate choice that needs to be taken … to what degree are those profits shared?

— Troy SarinaAn industrial relations academic questioning the distribution of Jetstar's profits.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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