Stephen Smith (Perth, Australian Labor Party, Shadow Minister for Industry, Infrastructure and Industrial Relations) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the fact that wholly owned Qantas subsidiary Jetstar will utilise AWAs in its international services later this year, with remuneration between $41,000 and $46,000 for cabin crews. Has the Prime Minister seen the comment by Jetstar CEO, Mr Alan Joyce, that most people would regard that ‘as a phenomenal salary’? Isn’t it the case that this so-called ‘phenomenal salary’ will see Jetstar international cabin crew paid between 20 and 30 per cent less than comparable Qantas crew? Prime Minister, isn’t this just starting your wages race to the bottom from Jetstar to Qantas?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Perth for that question. I am aware of the Jetstar agreement. I am aware of the fact that 200 new jobs have been created. I am also aware of the fact that there were 2,800 applications for these 200 jobs. And I am also aware that, in addition to the fact that the jobs will pay between $41,000 and $60,000 a year, the AWAs include entitlements such as a three per cent pay rise annually for each year of the agreement, six weeks annual leave and a guaranteed eight rostered days off every 28-day rostered period. I am also aware of the fact that there was nothing in the pre Work Choices law that required Jetstar employees in these circumstances to be paid the same salary levels as Qantas long-haul cabin crew. In other words, this is not the result of Work Choices; it is the result of the normal operations of the labour market—and the member for Perth ought to know it.