Qantas runs into trouble over Jetconnect subsidiary

Qantas has run into problems regarding its New Zealand subsidiary, Jetconnect (Australian Financial Review, 11-Feb-2011). According to Qantas, Jetconnect is a New Zealand operation with New Zealand employees and is not controlled by Qantas. At a Fair Work hearing, it emerged that Jetconnect's CEO, Paul Daff, has little control over the airline's operations, adding that Qantas handles the airline's accounts without consulting Jetconnect. But the Australian Council of Trade Unions has labelled the relationship between the companies a "sham agreement", claiming that Jetconnect has no bank account and relies on Qantas for all financial matters. The ACTU stated that the operations hide the fact that the true employer of the New Zealand-based pilots and crew is Qantas.

Australian Council of Trade Unions: "Qantas is claiming to be entitled to pay wages that are less than the award, and almost 40% lower than they would be obliged to pay under the Qantas [enterprise] agreement." Jeff Lawrence, secretary. Source: Australian Financial Review, 11-Feb-2011.