
Issue No 66		11 August 2000

LaborNET	Ask Neale	Tool of the Week

News

FAAA Uncovers Sham Employment at Impulse

The Flight Attendants' Association has uncovered an 'employment structure' at new domestic airline Impulse which is designed to avoid the responsibilities of an employment relationship and industrial regulation.

Under the Impulse scheme pilots and flight attendants are supplied to the airline by Air Crews Control, a company which claims not to employ any pilots or flight attendants.

Rather, Air Crews Control argues they have a number of shareholders and holders of units in a trust that work as flight attendants and pilots. Only the chief pilot is a direct employee to satisfy the CAA requirements.

Air Crews Control describes the flight attendants as working shareholders or working unit holders. They do not receive any income in respect of employment. Instead they receive distributions from the trust that are determined by the type of unit they hold.

It is believed that the "unit trust" provides Flight Attendants with an annual dividend of $25,000 including allowances. The dividend is paid monthly and after tax it is believed Impulse Flight Attendants receive about $420 a week. At the AIRC hearing Air Crews Control claimed to not provide any workers compensation.

Colin Coakley Secretary of the Domestic/Regional Division of the FAAA says the sham arrangement raises serious issues not just for Flight Attendants but for all workers.

'The arrangement is designed not only to deprive Flight Attendants of any working conditions but also any employment security,' he said.

'What happens if something goes wrong? It raises real issues of accountability when you have an airline that does not want to take responsibility for their pilots and flight attendants.'

Colin Coakley says he understands Impulse were attempting to bring cheap airfares into the Australian domestic market. However, he contrasts the Impulse approach with that of the other new entrant into the domestic air market.

Virgin Blue is to pay starting Flight Attendants $35,000 per year and Cabin Managers $42,000 under a union negotiated agreement.

'There still must be a balance between being a low cost operator and giving employees a fair deal.'

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Issue 66 contents

Interview: Shifting Sands
Michael Crosby Joint Director of the ACTU Organising Centre talks to Workers Online about the changing nature of union power, 'use it or lose it' coverage and how the ALP will have to deal with a transformed union movement.

Unions: Mission Possible
From Cambodia to Kyrghyzstan, from Malawi to Mozambique, this is one nurse who accepts certain missions where life is on the edge, and she loves it.

Economics: A Progressive Alternative
Andrew Scott outlines a policy approach for an ALP Government that aims to deliver social as well as economic progress.

International: Unions Back International Seafarer Deal
Shipping union representatives from 56 countries have decided to back a pioneering international collective bargaining agreement with ship employers.

Politics: Apolitical Myth
Over the last ten years one story about public interest in politics has found resonance, especially in the US. It suggests that people are no longer interested in political issues. Researchers from the Demos Foundation put this claim under the microscope.

Satire: Elaine Nile retires citing victory in "War on Masturbation"
There were emotional displays and many tributes paid today as Elaine Nile, Christian Democrat MP of 12 years standing, announced her retirement from the Parliament.

Review: Pure Shit
The 1970s Aussie drug classic, Pure Shit - a 70s Australian style Trainspotting - is being dusted off for a one-off showing at the Chauvel.

» It Will Happen Again Warn Fiji Unions

» Telstra in Olympic Twist Over Games Allowance

» FAAA Uncovers Sham Employment at Impulse

» Saloon Doors Flap as Wealthy Owner Walks

» ACOSS Slams Job Network

» Scrap HECS Say Nurses

» Fahey's Flog Off Fiasco

» Things Go Better With a $100 a Day Extra

» Shopping Centre Silent Over Greedy Grab

» Selley's Workers Stick to Union

» Taxi Incentive Needed to Avert Olympic Shortage

» Sneaky Chubb Forced to Pay Redundancy

» Seaforth Picket Marks a Year With Picnic

» Road Rage! Air Rage! WORK RAGE!