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Australia aviation loophole ironically risks undoing ‘Closing the Loopholes’ reform

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Cabin crew jobs in Australia could be at risk after Qantas has announced plans to hire up to 650 cabin crew in Singapore, exploiting a new loophole that could normalise offshoring aviation jobs to drive down employment conditions.

The Australian Government’s ‘Closing the Loopholes’ workplace reforms were created to ensure employers couldn’t use unscrupulous tactics to drive down employment conditions, but a new loophole may just do the opposite.

Scott McDine, ITF Regional Secretary for Asia Pacific, said the situation raises serious questions: “Australian workers fought hard for stronger protections through the Closing the Loopholes reforms. It is unacceptable that businesses like Qantas are attempting to find new ways to undermine this.”

The Flight Attendants’ Association of Australia (FAAA) has launched a national campaign warning that offshore crewing models are undermining hard-won employment standards and workplace protections. The FAAA's concerns extend across the Qantas Group, including Jetstar, which operates an Indonesian-based crew hub employing reportedly 2,500 crew members.

There are serious concerns about cabin crew employed on non-Australian employment standards working on aircraft that are registered in Australia and operating under an Australian Air Operator’s Certificate (AOC). These workers carry out safety-critical duties under Australia’s aviation system but may be employed overseas under conditions that do not harmonise with Australian safety standards and processes.

The controversy comes after Australia’s labour government introduced its “Closing the Loopholes” workplace reforms, which overhauled the Fair Work Act to strengthen worker rights and close gaps that allowed insecure work practices to flourish. The legislation is now subject to ongoing review to assess whether it is achieving its intended protections. The FAAA warns a new loophole may be emerging in aviation.

 

A global model driving down standards

While the issue is playing out in Australia, it reflects a broader global trend in aviation. Airlines are increasingly using offshore bases and complex operating models to reduce labour costs and attack unionised workforces. These structures allow companies to shift operations between jurisdictions, employ workers under different legal regimes, and fragment their workforce to drive down workers’ protections – sometimes resulting in multiple employment standards across the same network, or even the same aircraft.

Sara Nelson, ITF Civil Aviation Section Chair, said these practices are becoming a defining challenge for the industry: “This is not just about one airline or one group of workers. It is about the future of aviation jobs in Australia and eventually across the

world. If these models are allowed to expand, they will reshape the industry - driving down standards, reducing secure employment, and weakening the protections that workers and passengers rely on every day.”

Aviation safety and labour standards go hand in hand. You cannot weaken one without affecting the other. The message from Australian aviation workers is clear: close the loophole now.”

Open skies agreements may enable these models. While designed to increase connectivity, they can effectively allow airlines to leverage regulatory systems in pursuit of the lowest cost and liability. The result is a system that incentivises operating where pay, conditions and standards are lowest, not highest

To stop the loophole from expanding, the FAAA has launched an official parliamentary petition calling for a national inquiry.

If you are an Australia citizen or resident, sign the petition now: https://www.aph.gov.au/e-petitions/petition/EN9621

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