Senate debates

Monday, 31 October 2011

Questions without Notice

Qantas

2:40 pm

Photo of Gary HumphriesGary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | | Hansard source

My question is to the Minister for Tertiary Education, Skills, Jobs and Workplace Relations, Senator Evans. Following the media conference today of the Minister Evans, the Prime Minister and Minister Albanese where it was confirmed that the government had at least three hours notice of the impending employer industrial action in the Qantas dispute, can the minister confirm to the Senate that the government had both the time and the means under section 431 of the Fair Work Act to prevent the grounding of Qantas's fleet before it actually occurred?

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! When there is silence, if you wish to debate it the time to do so is after question time.

2:41 pm

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

I thank Senator Humphries for his question. As I have indicated previously, the government was in receipt of advice about the provisions of the Fair Work Act that would be available to it in the Qantas dispute. Clearly, the decision of Qantas to lock out its employees and ground the airline was one that was not anticipated as being a likely course of action at that time. It had not been flagged. It had not been raised by the government, and we continued to believe that Qantas was focused on negotiated settlements, as it had said publicly and privately.

We had advice, and we confirmed advice, in relation to how we might best respond. We had a conference of ministers, and the decision was taken for me to make the application on behalf of the government under section 424 to seek to have the matter heard before Fair Work Australia and have orders made to cease all industrial action. That was the recommendation to the government and it was one we took. We accepted that advice. We took the action as urgently as we could. Fair Work Australia, to their credit, responded and began hearing the matter at nine o'clock that evening. That advice, and the actions we took, worked. We did get the orders from Fair Work Australia to settle the dispute and to order that all industrial actions cease, so we acted on that advice.

Section 431 is a section in the act similar to sections that have been in earlier pieces of industrial relations legislation. That power has never been used by a government, despite a number of very serious disputes. It is seen as a reserve power, one that would be used as a measure of last resort. Our advice was to use section 424 to make an application, and we did so. (Time expired)

2:43 pm

Photo of Gary HumphriesGary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | | Hansard source

Mr President, I ask a supplementary question. Does the minister confirm to the Senate that among the possibilities that his advice adverted to was the possibility that Qantas would take up their right under the Fair Work Act to lock out their staff? If they were aware of that possibility and if they were aware of Qantas taking the step of locking out staff before this came into being, why did the minister not activate a contingency plan to use section 431 to prevent the dispute occurring and so prevent disruption to thousands of Qantas travellers, domestic— (Time expired)

2:44 pm

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

There are a couple of aspects to that. Most certainly if you ask me whether technically I was aware that an employer had the power to lock out its employees, yes. That is part of the act. Did I think there was any chance of Qantas moving to do that on the Saturday? No, I did not. I spoke to Mr Joyce when he rang to advise me that he was placing a courtesy call to me and Minister Albanese to advise us that they had taken the decision to lock out their employees, that they had taken the decision to cease their operations at 5 pm and that if information relating to those matters leaked they might have to close the airline earlier. So, clearly, they were set upon that course. When I asked Mr Joyce to explain the reasons for his decision, he stuck to the general lines that he has been providing to the media. There was no trigger that I could understand— (Time expired)

2:45 pm

Photo of Gary HumphriesGary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | | Hansard source

Mr President, I ask a further supplementary question. Did the government not anticipate the potential for Qantas grounding its fleet in this way? Did the government advert to the possibility of millions of dollars being lost as well as the inconvenience to travellers? Again, why did the government not take the step under section 431 of preventing the grounding of Qantas's fleet before it actually occurred?

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Time for debating the issue is after three o'clock.

2:46 pm

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

I made it clear publicly and in the parliament that I did not anticipate that Qantas would seek to lock out its employees. This is the most extreme industrial option available to an employer. It is the most extreme action possible.

Senator Abetz interjecting

An all-out strike, Senator, is the equivalent. You are quite right. An all-out strike by those three unions shutting down Qantas would be the equivalent of what Qantas did—that is, a lockout of all its employees, closing down the airline without notice to government or to its passengers. It is the most extreme industrial action available to Qantas. So when I am asked, 'Did I anticipate them taking that action?'—no. Their last advice to me was that they continued to seek a negotiated settlement. When they did take that action, the government moved immediately to act on the advice it was given, which was to seek orders from Fair Work Australia. We did so, we got the orders and we had the industrial action terminated. It worked, and I am very pleased it did. (Time expired)