Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table an explanatory memorandum and I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

Air Navigation and Civil Aviation Amendment (Aircraft Crew) Bill 2011

The fundamental aim of this bill is to require Australian airlines and their subsidiaries to provide the same pay and conditions to overseas-based flight and cabin crew operating on their flights.

Currently, Australian airlines are able to use crew who are employed either through the airline's own overseas-based subsidiary, or through third parties in a foreign country.

These crew members can fly domestic legs of international tagged flights, or on international flights on Australian registered aircraft.

In July this year, ABCs Lateline program exposed the conditions these crew members can work under, including low pay and long hours, with little or no opportunity to bargain for better conditions.

Employed on foreign contracts, these crew members usually invariably earn much less than their Australian colleagues do, even though they are performing the same duties and are often working on the same flights.

On the Lateline program, Bangkok-based cabin crew who are working for Jetstar revealed that their base salary can be as little as $300 a month plus allowances.

Crew on overseas-based contracts are also not subject to the same duty limits as those on Australian contracts, which can result in their shifts being extended past what would otherwise be considered safe.

The issue of crew fatigue was one that was covered extensively in the recent Senate Rural Affairs and Transport References Committee inquiry into aviation safety, which resulted in the committee handing down two recommendations on this issue.

This bill consists of two parts, one to address international flights and the other to address domestic flights.

In the first instance, the bill amends the Air Navigation Act 1920 to impose a new condition on international aviation licences.

This condition applies to Australian airlines, and to overseas subsidiaries or associated entities of Australian airlines, as defined in the Corporations Act 2001.

Under this condition, Australian airlines that employ overseas-based cabin or flight crew through a third party for overseas flights must ensure that these crew receive the same wages and employment conditions that they would if they were directly employed by the company.

For subsidiaries or associated entities of Australian airlines, the condition is that overseas-based flight or cabin crew who are directly employed by the subsidiary or associated entity for international flights must receive the same wages and employment conditions that they would if they were directly employed by the airline controlling the subsidiary or associated entity.

These conditions apply to both new and existing licences.

An international licence will not be granted if these conditions are not met.

The second part of the bill amends the Civil Aviation Act 1988 to place a condition on the issuing of Air Operator's Certificates.

Australian airlines will be required to ensure that crew who are not directly employed by the airline but who are involved in its everyday functioning receive the same pay and working conditions as if they were directly employed by the airline.

New Zealand subsidiaries and associated entities of Australian airlines, as defined by the Corporations Act 2001, will also be required to ensure that employees are offered the same wages and conditions as if they were employed by the controlling entity. Under the bill, this will become a condition of granting a New Zealand AOC with ANZA privileges, which allow for mutual recognition of aviation certification between Australia and New Zealand as a result of the Closer Economic Agreement.

This will also apply to all new and existing AOCs.

This bill aims to stop Australian airlines and their subsidiaries from cutting corners and abusing the lax workplace standards in some foreign countries.

I would like to acknowledge the assistance and support offered by both the Australian Council of Trade Unions and the Australian and International Pilots Association.

It is not acceptable that a crew member can be employed by an Australian airline, flying on an Australian plane, and be employed under workplace conditions and receive pay that we would consider unacceptable in Australia.

It is time for airlines to be fair with their all employees, and to be open and transparent about their employment practices with the Australian travelling public.

I seek leave to continue my remarks later.

Leave granted; debate adjourned.