By Neena Bhandari

Sydney, 01.11.2011 (Business Standard): Small and big businesses, especially those affiliated with tourism, were counting the cost after Fair Work Australia, the country’s industrial relations body, ordered an end to the dispute between the management of Qantas, the national airline, and union members.

Destination New South Wales, for instance, estimates Parramasala, a unique international festival which celebrates South Asian Arts, could lose A$750,000 due to artists not arriving and lost business for restaurants and hotels. The festival began yesterday with a Deepavali Fair and runs until November 6. Five Indian artists from a musical group are due to leave Delhi on a code-share flight with Qantas and festival organisers fear that if an alternative flight cannot be found, performances may need to be cancelled and 1,600 tickets refunded.

After a marathon full-bench hearing that went well past midnight, Fair Work Australia granted the Australian government’s application to terminate all industrial action by the Australian Licenced Engineers Union, the Transport Workers Union, the Australian and International Pilots Union and Qantas. The ruling now requires the unions to return to the negotiating table and come to an agreement within 21 days or face binding arbitration. It is estimated that Qantas will not be fully operational until Wednesday.

The unions have resorted to a series of strikes since August, when Qantas announced plans to restructure and outsource to combat annual losses of about A$200m. Following the decision, Qantas shares rose nearly six per cent to A$1.63 in early trading on the Australian Stock Exchange.

Qantas’ chief executive officer, Alan Joyce, said: “This has been a challenging period. We sincerely regret the impact on customers of industrial action over recent months, and the effect on employees. We look forward to a rapid recovery and to a period of stability.”

Ratings agency Standard and Poor downgraded Qantas’ outlook to negative from stable and Moody’s investor service has placed the airline under review for a possible downgrade. The world’s 10th largest airline, Qantas has had an impeccable safety record. Welcoming the recommencement of operations, Tourism Australia managing director Andrew McEvoy said, “This is a breakthrough for Australian tourism, an industry which generates A$250 million a day in spending for our economy.”

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