A bitter dispute between Qantas and staff is to go to arbitration after the airline failed to reach agreement with pilots and ground staff.
Qantas and two unions were ordered by industrial relations watchdog Fair Work Australia to reach an agreement.
But the airline’s chief executive Alan Joyce said: “We haven’t been able to reach a new agreement with the Australian and International Pilots Association through negotiations so we will now let the independent umpire decide.”
He added that “some progress in negotiations” was made with movement on both sides.
“However in the end we were unable to reach a new agreement for our 1,600 long-haul pilots,” added Joyce.
“We will continue to explore any opportunities with the pilots’ union to reduce the number of matters that need to be arbitrated on,” he said.
“Qantas did not terminate the negotiations today. Both parties concluded that an agreement could not be reached so the matter will be resolved by arbitration.”
The airline grounded most of its domestic and international fleet on October 29, a move that affected around 80,000 passengers worldwide.
“Qantas customers have returned in large numbers since we resumed flying and they can continue to book flights with absolute confidence,” said Joyce.
“Fair Work Australia ordered the Australian and International Pilots Association to stop all industrial action which means it cannot take any action during the arbitration period and for the term of Fair Work Australia’s determination, which will be for a period of up to four years.
“The pilots’ union has launched a legal challenge against the decision by Fair Work Australia to terminate all industrial action, the Federal Government has indicated that they will vigorously defend the decision and are confident the union will not be successful. We are right behind the government on this.”