National carrier Qantas is preparing for strikes, with the Australian Licensed Aircraft Engineers Association announcing it will begin two-hour rolling stoppages next week.
The union says while strikes will be implemented between 4am and 9am, there will be other staff available to fill in – but only if they are paid overtime.
“The concept of a union deliberately supplying strike-breakers against their own members appears to be an Australian first,” association federal secretary Steve Purvinas told The Australian.
“The concept would add financial cost to the carrier, as it would be required to pay overtime rates to replace workers who would be docked a single-time hourly rate. However, it does work out cheaper than the $5000 a week Qantas is currently offering alternative workers, and we know safety won’t be affected because the regular employees would be working the overtime.”
The engineers planned similar action last month but eventually called it off. The group’s demands include new pay structures.
Qantas has attacked the association, saying it is deliberately targeting the busy school holiday period.
“Our priority is to the Australian travelling public and we are currently assessing our contingency plans to minimise the disruptions to our customers,” group executive of operations, Lyell Strambi, said in a statement.
“No Australian company would pay staff four times their normal rate to go on strike. What incentive would the union have to reach an agreement with workers earning money while on strike?”
The trouble is just the latest facing Qantas – the airline has suffered considerable financial penalty due to the recent ash cloud chaos, and has also raised fees due to higher fuel prices.
Gina Rinehart prepares to sue Rio Tinto
Australia’s richest person, Gina Rinehart, is preparing to sue mining giant Rio Tinto over unpaid royalties allegedly promised back in 1970.
According to various reports, Rinehart has teamed with mining magnate Angela Bennett and Bennett’s brother Michael Wright to go through with the lawsuit, which concerns rights over the Pilbara region.
The lawsuit is reportedly being filed in the New South Wales Supreme Court, with the trio pursuing an extra $136 million in royalties.
Shares rise after strong Wall Street lead
The Australian sharemarket has opened higher today after a strong lead from Wall Street, where stocks rose after banks became more positive over news Greece may be able to introduce an austerity plan.
The benchmark S&P/ASX200 index was up 17 points or 0.4% to 4479.7 at 12.10 AEST, while the Australian dollar rose slightly to $US1.04c.
AMP shares rose 0.64% to $4.72, while Commonwealth Bank shares rose 0.97% to $50.94. NAB shares gained 1.02% to $24.75 as ANZ rose 0.71% to $21.39.
In the United States, the Dow jones Industrial Average 108.98 points or 0.91% to 12,043.56.
AMP merger to cost $30 million
AMP has announced the costs of its merger with AXA APH will come to the $30 million for the first half of the 2011 calendar year.
“M&A transaction costs for 1H11 are expected to be $30 million and relate primarily to the costs associated with the merger of AXA and include legal, financing and investment banking costs,” AMP said in a statement.
“These M&A transaction costs are not part of the merger integration budget.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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