Fed: Employees take payouts as union signs new Ansett deal

AAP General News (Australia)
12-20-2001
Fed: Employees take payouts as union signs new Ansett deal

By Jane Williams, Industrial Correspondent

MELBOURNE, Dec 20 AAP - Ansett employees who keep their job will maintain current pay
rates but will have to work harder for their money.

Hundreds more employees took up the company's offer of voluntary redundancy this week
as the first rounds of entitlement instalments were paid out to former workers from the
federal government's $195 million Special Employee Entitlements Scheme for Ansett Employees
(SEESA).

But, with SEESA capping redundancy payments at eight weeks pay and with the average
Ansett worker owed about 45 weeks, the majority of employees will not receive their full
payouts until Ansett has been sold and its assets recovered.

In other developments today, five key unions signed an enterprise agreement with Tesna
Pty Ltd, which will take over ownership of Ansett Mark II on February 2.

The company has agreed to keep pay rates on the same level as Qantas and the former
Ansett operators, but unions were forced to concede to efficiency changes in staffing
and rosters.

The Ansett Start-Up Enterprise Bargaining Agreement was certified by Senior Deputy
President Ian Watson in the Australian Industrial Relations Commission (AIRC) this morning.

The Australian Services Union (ASU), Transport Workers Union (TWU) and unions covering
engineers, managers, pilots and flight attendants signed the deal.

The agreement includes a five per cent share of profits and equity for employees; a
$4.2 million pool from which wage increases will be funded; and a commitment to guarantee
employee entitlements.

Unions were also guaranteed representation rights and given assurances employees would
not be required to work unreasonable hours.

ACTU boss Greg Combet said the agreements would kickstart the new Ansett operation.

"The new agreement contains pay rates which are broadly comparable to previous Ansett
and Qantas levels," Mr Combet said.

"New staffing levels, working arrangements and improved productivity will give the
best possible chance for the commercial success of the airline."

Tickets for the new airline are already being sold through the internet and 4,000 employees
of Ansett Mark II are vying for positions with the new airline.

Ansett Mark II's chance of success improved earlier this week with the announcement
two American investors with industry experience would back the new airline.

David Bonderman made his name rescuing Continental Airlines in 1993 while Bill Franke
hauled America West out of bankruptcy in 1994.

Newspapers today said Tesna had budgeted for a $120 million loss in the first year
of operation and a slight loss in the second year.

It aimed to make a profit of about $50 million in the third year and planned to partially
float the company in three to five years, according to sources.

AAP jmw/clr/ph/mo

KEYWORD: ANSETT NIGHTLEAD

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