New research from the Centre for Future Work quantifies the dramatic risks faced by workers whose employers unilaterally terminate enterprise agreements during the course of renegotiations.
The paper reviews one dramatic example of this termination threat – dubbed the ‘nuclear option’ by labour law experts. Earlier this year, Qantas threatened termination of the EA covering its international cabin crew unless they accepted significant contract concessions. The new report confirms that losses from termination would have been enormous:
- Hourly wage cuts between 25% and 70%
- Annual income losses up to $67,000 for the most senior staff
- Loss of superannuation contributions and investment income, totalling as much as $130,000
- From the company’s perspective, termination would save $63 million per year, and up to $1 billion over 15 years
“The scale of the losses experienced by Qantas staff as a result of termination would have been catastrophic,” said Lily Raynes of the Centre for Future Work, co-author of the report.
Related research
Going Nuclear: The Costs of Mid-Bargaining Termination of Enterprise Agreements