Qantas should gain from forced industrial dispute ruling

Qantas should stand to gain from the forced settlement Australia's industrial umpire Fair Work Australia (FWA) will make after Qantas and its unions - representing pilots, engineers and ground employees - failed to reach a settlement today, the expiry of a 21-day period given to them under the Fair Work Act.

The settlement will create a new three-year binding agreement. Under Australian law, no industrial action cannot be taken prior to the expiry of an arbitrated agreement, protecting Qantas from industrial action from its major unions through late 2014.

Claims from the unions representing pilots and ground handlers centred on job security and wage increases. Qantas says it has offered pay rises while making clear it cannot guarantee job security. Industrial body FWA will be hard pressed to agree with unions over their job security claims. FWA has shown a disposition towards Qantas, but any employee pay rise management views as unfavourable can be re-negotiated in three years.