In a landmark shift for Australia’s labour industry, over 800 cabin crew employed through labour-hire are set to see wage increases of up to 28%, thanks to the Albanese Government’s Same Job Same Pay laws. Effective November 1, 2024, these labour-hire reforms aim to bridge the pay gap between direct and labour-hire workers performing identical roles. This pay rise marks a significant victory for thousands of workers across diverse sectors who have long fought for fair wages and equitable treatment.
The Fair Work Commission’s “regulated labour-hire arrangement orders” were enacted this month, mandating equal pay for labour-hire employees to align with directly employed workers. This legislative reform affects industries from airlines to mining, ensuring workers no longer face wage suppression tactics to keep labour-hire wages below industry standards.
“These wage increases are life-changing for flight attendants and their loved ones,” said ACTU Secretary Sally McManus. “Hardworking flight attendants will see 28 percent wage increases as a result, a monumental step towards wage equality in Australia.”
Historic Change for Cabin Crew
For years, many cabin crew members working for Qantas Domestic and other significant airlines through labour-hire companies earned significantly less than their directly employed counterparts, even though they performed the same duties. This wage disparity translated to thousands of dollars annually for full-time cabin crew, highlighting the pressing need for wage reforms.
According to Fair Work Commission guidelines, Qantas and similar companies must now ensure labour-hire workers receive the same minimum wage as directly hired employees. This decision is projected to increase salaries by up to 28%, with backdated payments effective from the first pay period after November 1, 2024.
“Closing the wage-cutting loopholes of companies like Qantas incentivized them to offer a better deal for workers,” commented FAAA Federal Secretary Teri O’Toole. “These pay rises will help restore dignity to our profession and ensure cabin crew are valued for the tireless work they do.”
The “Same Job Same Pay” Reform Explained
The Same Job, Same Pay reform, a core component of the Albanese Government’s labour policy, was enacted to close loopholes that allowed companies to segment their workforce. Companies could previously avoid paying industry-standard wages and benefits outlined in Enterprise Bargaining Agreements (EBAs) by hiring employees through multiple labour-hire contractors.
Under this reform, introduced in 2023, employers must pay labor-hire workers the same wages as directly hired employees for equivalent roles. This measure has resonated deeply within industries that have relied on segmented hiring practices, such as airlines, mining, and meat processing.
The Fair Work Commission also noted that in addition to cabin crew, other workers across industries such as mining and meat processing will see similar pay increases, ensuring that wage equity extends to a broader segment of Australia’s workforce.
For more insights on the Fair Work Commission’s labour-hire arrangement orders, visit the Fair Work Commission’s website.
Qantas Agrees to Amendments for International Crew
In response to three applications submitted by the Flight Attendants Association of Australia (FAAA) in mid-2024, Qantas has agreed to wage increases for its domestic crew and proposed amendments to its Enterprise Bargaining Agreement for long-haul cabin crew. This EBA amendment is under review by the Fair Work Commission and, if approved, would extend substantial pay rises to an estimated 2,500 international crew members.
“Cabin crew are undervalued and underpaid for the tireless work they do,” emphasized O’Toole. “The Same Job Same Pay reform ensures higher wages for workers, fostering greater workplace cooperation and fairness.”
Political Divide on Labour Hire Laws
Despite its success in raising wages for workers across industries, the Same Job Same Pay legislation has faced criticism from opposition parties. In a 2023 address to the Institute of Public Affairs, Opposition Leader Peter Dutton praised former Qantas CEO Alan Joyce for his “forthright views” on industrial relations, which included opposition to labour hire reforms. Dutton and the Coalition have strongly disapproved of the Same Job Same Pay laws, raising concerns about potential wage reductions for affected workers should they return to power.
This political divide underscores the high-stakes nature of labour reform in Australia. With the Coalition’s resistance to these laws, unions and worker advocates remain concerned that future changes in government could reverse the progress made in addressing wage inequality.
A Broader Impact on Australian Workers
As these labour reforms go into effect, workers from airlines to meat processing are already beginning to experience their benefits. Many labor-hire employees now enjoy wage increases previously out of reach due to outdated hiring practices that enabled wage suppression.
“Working people across many industries are experiencing the benefits of the Albanese Government’s commitment to fair wages,” remarked ACTU Secretary Sally McManus. “These laws prevent companies from exploiting labor hire to undercut wages, a practice that has hurt Australian workers for too long.”
Visit the Australian Council of Trade Unions (ACTU) for more details on Australia’s same-job and same-pay laws.
A Call for Political Support
In the face of political challenges, cabin crew and labour advocates urge all parties to protect the Same Job Same Pay laws and ensure fair pay for labour-hire workers. As FAAA Federal Secretary Teri O’Toole stated, “Flight attendants and workers across industries are calling on all political parties to defend these laws and secure fair wages and conditions.”
The upcoming election will likely become a critical moment for future wage equality in Australia. For now, the Albanese Government’s reform is a step toward fairer wages and greater transparency, ensuring that hardworking employees across Australia are fairly compensated.
Written by: Soo James
