By Rishav Chatterjee
(Reuters) -Pilots at Network Aviation, the charter subsidiary of Qantas Airways, will back down from a planned strike this week, the Australian Federation of Pilots (AFAP) said on Tuesday.
The AFAP on Friday indicated the pilots will stop work on Wednesday and Thursday in a bid to negotiate wages, which would have disrupt charter operations for the country’s resources sector.
Qantas on Tuesday said it placed contingency measures, including using aircrafts from the wider group and other airlines, to replace services that would have been impacted.
Many mining and energy companies staff operations on a fly-in/fly-out model rather than permanently basing employees at remote sites, a business Network Aviation operates in.
Australia’s industrial relations tribunal, the Fair Works Commission (FWC), had presided over talks between the parties on Monday.
The FWC after the talks said a Joint Consultative Committee had been established to discuss the application of the enterprise agreement or other matters as agreed between the parties.
AFAP members – who make up 90% of Network Aviation’s pilot group – won’t be engaging in protected action until next week’s bargaining sessions are completed, the union said.
The union will attend in-person bargaining sessions facilitated by the FWC from Nov. 7.
Qantas expressed disappointment over union choosing to “cause disruption and uncertainty” by threatening the strike a few days before a meeting with the FWC.
Qantas will explore all options to make an agreement which benefits pilots and meet needs of the business, the flag carrier said.
The halt of the strike is unlikely to be the end of the story given the gulf that still exists between the parties, said Tim Waterer, chief market analyst at KCM Trade.
Shares of Qantas rose 3.5% to A$4.97 as of 0527 GMT and were set for their best day in about four weeks.
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