Record Jetstar profits fuel pay fight over 'rock bottom' wages

Jetstar is making record profits while passengers are being slugged more fees and now workers say they want a bigger slice of the airline's success.

The Qantas Group's low-cost carrier posted a record $492 million in underlying earnings in the six months to December, up 12 per cent on the previous year.

Yet the Australian Services Union (ASU) said about 900 Jetstar airport operations workers were now effectively being paid at award rates, after the Fair Work Commission's annual wage increase overtook their expired enterprise agreement.

Jetstar said in a statement negotiations were ongoing, and it was committed to reaching a new deal.

"We're continuing to meet regularly with the ASU to progress negotiations … that includes pay increases, while continuing to deliver low fares to our customers," a spokesperson said.

Earlier this month, Jetstar announced passengers will need to pay extra to access the overhead lockers from next year, in a bid to streamline boarding, with the new fees adding up to $52 per flight depending on the route.

The move was described as a "money grab" by travel agent Lynton Jones from the Savvy Traveller.

Industrial relations academic at the University of Sydney and a former Qantas employee, Troy Sarina, said lower pay rates at budget airlines were not unusual.

"There is lower rates of pay at the low-cost carrier compared to a legacy airline, because that's how the airlines differentiate themselves in the marketplace," Dr Sarina said.

He said labour was one of the biggest costs facing airlines, after aircraft and fuel.

But Dr Sarina said Jetstar's profits raised questions about how much of its success should flow to employees.

"There is a deliberate choice that needs to be taken … to what degree are those profits shared?" he said.

'We've hit rock bottom'

The bargaining dispute, which has been underway for several months, covers 929 Jetstar airport operation workers, including customer service staff who check-in flights, handle bags inside the terminal and marshal the aircraft out on the tarmac.

These workers typically earn $29.45 an hour.

An ASU survey conducted to help with their negotiations, which covered most of these workers, found 96 per cent said their wages were failing to keep pace with the cost of living, more than 70 per cent had cut back on essentials or taken on extra shifts, and almost a third had gone into debt.

Jetstar customer services officer Emma*, who has worked for the airline for more than a decade, said workers had seen their wages steadily lose ground.

"This is the first time in 15 years we've hit rock bottom with our wages,"

she said.

"It's really disappointing to see that over time that has just slowly been eroded, particularly in the last four years."

She said she had been forced to cut back on her children's activities and has put off extra household spending to keep pace with rising costs.

"We are the lowest paid in the industry and it's completely disheartening to be honest," she said.

Workers are seeking pay parity with Qantas, arguing staff performing comparable roles can earn significantly more despite working with the same corporate group.

Dr Sarina said the pay gap reflected the different industrial arrangements between the two airlines, with Qantas traditionally offering higher wages and conditions.

The union says a worker with equivalent skills and seniority at Qantas can earn about 18 per cent more than a Jetstar employee performing similar duties.

ASU assistant national secretary Scott Cowen said Jetstar's current bargaining position remained tied to the Qantas Group wage policy of 3 per cent annual wage increases.

"Now our members working at Jetstar are being paid just the bare minimum legal wage by the company until a new agreement is reached," he said.

"Our members work hard every day to make sure that Australians can get to their destinations working for Jetstar and they deserve their fair share of the profits."

No protected industrial action has yet been commenced, although union survey results indicate strong support for escalation if negotiations fail to progress.

Extreme weather on the tarmac

The ASU survey found more than half of Jetstar workers reported symptoms of heat exposure, while almost six in 10 said they had "felt pressured" to keep working in extreme temperatures.

Workers said the tarmac can be far hotter than official readings as heat radiates off concrete and bitumen.

Some described temperatures so intense their shoes softened and warped beneath their feet.

"We've had members report to us before where they've had nail polish on their toes get caught to their stockings. That's how hot the tarmac can be," Mr Cowen said.

Emma said she had experienced the impact firsthand while pregnant.

During a shift she spent about 30 minutes marshalling aircraft in extreme heat before returning inside the terminal.

"I didn't even realise at the time how badly the heat had affected me until I walked back inside and became physically ill," she said.

The union said concerns about heat were significant enough to warrant specific protections in the next enterprise agreement, including mandatory paid breaks linked to temperature thresholds and stronger controls around rostering and tasks during extreme weather.

Employment lawyer Lisa Qiu from Citation Group, who specialises in workplace safety, said employers had an obligation to minimise heat-related risks.

"The law requires employers to do everything that is reasonably practicable to eliminate those risks associated with working in the heat," she said.

However, Ms Qiu said the Airline Operations Ground Staff Award already contained heat-related allowances and break provisions for some workers, although these generally only applied once temperatures exceeded 46 degrees Celsius.

Under the award, workers are paid an extra 85 cents per hour when the temperature is between 46 and 54 degrees.

Jetstar said it operated in destinations ranging from snowfields to tropical regions and had "a range of policies and procedures" in place to support employees working in "challenging conditions".

"We regularly review these in consultation with our people and their unions," a spokesperson said.

The ABC understands the airline had introduced some additional uniform options last year, including shorts for workers at Queensland airports, along with scarves, gloves and reimbursement for thermals for workers in colder climates.

The union argued those measures did not go far enough and was seeking enforceable heat protections written into the next enterprise agreement, including mandatory paid breaks tied to when temperatures went above 35 degrees.

Dr Sarina said concerns about conditions on the tarmac were not just a workforce issue.

"If there's something not right with the baggage handlers or something going on in the tarmac, then obviously that will impact people being able to get on their planes, to get their luggage on the plane and for the plane to arrive on time," he said.

New baggage policy raises fresh concerns

The dispute comes against the backdrop of Jetstar's recently announced cabin baggage changes.

From February 2, 2027, passengers who want to store a cabin bag in the overhead locker will have to pay extra.

But it will mean removing the 7-kilogram limit, and travellers will be able to take on bags up to 10 kilograms.

The union has raised concerns the new system could increase manual handling risks if workers are required to assist passengers with heavier carry-on bags.

It is also seeking clarification about how the changes could affect the role of cabin baggage officers who currently monitor luggage compliance at airport gates.

Mr Cowen said frontline staff often found themselves dealing with passenger frustration over company policies.

"We are concerned that a new, probably unpopular cabin baggage policy will just add to those pressures if they're not managed appropriately by the company," he said.

Dr Sarina said debates over wages and conditions were ultimately about more than pay packets.

"If there is a perceived inequity in the way that work pay and conditions is set up, it can lead to decrease in motivation and also people feeling a degree of lower morale," he said.