Qantas "fry the flag" sell off - sell out

After years of trying to outsource every skilled job from maintenance work to pilots, while still claiming to be Australian, Qantas finally shows it's true flag the flag of convenience, the surrender to the global asset strippers with shonky money sloshing around for another slice of what the taxpayer and employees built up over generations.

One striking aspect of this modern craze of "debt financed" takeover is that the $11 billion buyout will increase the Qantas debt from $4 billion to $18 billion! Tax dodging writ large, yet Howard says his government "will not take sides".

Australian Manufacturing Workers Union Acting National Secretary Dave Oliver said the take-over bid by Macquarie Bank and Texas Pacific Group was not in the national interest and would make the loss of jobs and a decrease in safety standards more likely.

“Qantas is an Australian icon and the service, safety and standards that it is famous for are all down to the Australian workers who make up the Spirit of Australia.”

“It is against the national interest for the Prime Minister and Treasurer to sign-off on this take-over bid.”

“We are extremely concerned of the likely approach Texas Pacific will take going from their previous willingness to sack workers and send the jobs overseas.”

“For example their take-over of airline catering company Gate Gourmet in the UK led to the sacking of 3000 workers, and when they took over German Grohe Water Technology they commissioned a study that recommended sending production to China and then sacked around a fifth of the workforce.”

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Unions are also troubled by the fact that the Howard Government's new IR laws have made the take over of Qantas a more attractive proposition because they allow major cuts to workers' wages and conditions in a number of ways. Qantas has already started the process of cutting workers' pay through the introduction of Australian Workplace Agreements.

In the likely event the company is restructured, it is also possible under the IR laws for workers to lose all their terms and conditions including entitlements to public holidays, leave loadings, penalties, allowances and redundancy pay - receiving only $13.47 per hour and four other minimum conditions.

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More important than the future of Qantas is the whole phenomenon of "private equity" and where it's likely to take us. Private equity is negative gearing for companies. No wonder wise heads are warning it will end in tears.

The company's desire - under present or proposed owners - to continue enjoying the profits flowing from government protection as the "national carrier", while continuing to cut costs and reduce service.

In this it's a typical Macquarie Bank acquisition. Macquarie has roamed the world seeking to control government-granted monopolies that have been privatised and inadequately regulated. Wherever politicians screw up, there is Macquarie clipping tickets.

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