Baggage handlers end strike on big rise deal

BAGGAGE handlers and ground crews employed by the Emirates-owned dnata have called off industrial action planned for Monday after the company agreed to a 17 per cent pay rise.

The Transport Workers Union was also expected to strike a deal with another ground-handling provider Menzies, before employees were balloted on potential industrial action.

It’s understood the companies backed down on changes to overtime, and agreed to a 12.6 per cent back pay increase plus a further 4.6 per cent hike next year.

Currently ramp team workers are paid a base rate of $22.45 an hour, rising to $27.36 for a leading hand.

The deals mean international and domestic passengers of 30 carriers including Qantas, Emirates, Etihad and Singapore Airlines will be spared further disruption to travel on Monday.

TWU national secretary Michael Kaine said dnata workers were thrilled to have locked in greater security after two years of turmoil.

“Overworked ground staff needed a fair deal that would sustain them and their families so that they could remain in the industry. By standing strong together they achieved it,” Mr Kaine said. “It’s a relief for hardworking families that last-resort strike action is no longer necessary.”

Chief executive of dnata Australia, Burt Sigsworth, confirmed the company would “further enhance its highly competitive compensation packages” for 1700 employees across six airports.

“We are committed to ensuring our employees are appropriately compensated,” he said.

Mr Kaine said the need to retain an experienced, welltrained and well-resourced workforce had been highlighted by a security breach at Sydney Airport on Wednesday.

Mr Kaine said the continuing chaos at airports was due to the aviation industry’s loss of training and experience during the pandemic.

The Sydney Airport incident came as an analyst stepped back from a previous prediction that Qantas would suffer from recent negative publicity and brand damage.

Citi Research analyst Samuel Seow said they had underestimated customers’ willingness to pay higher fares in the face of increased spending by Qantas to address on time performance issues.

“At an absolute level, we think Qantas guiding to essentially 2019 levels of earnings despite unforeseen performance issues, indicates the company is being managed well for shareholders,” Mr Seow said.

“However, on a relative basis, we see this hurdle as high and the potential risk/reward skewed to the downside.”