Same job, same pay: A victory for wage parity and collective bargaining in aviation

The “same job, same pay” legislation, passed by the Labor government in December 2023, represents a turning point for workers in Australia, particularly in aviation, writes Corey Rabaut.

Companies like Qantas have long used complex employment models to create disparities in pay for workers performing the same roles. This practice not only widened pay gaps but also eroded wage growth and hampered collective bargaining. With this new legislation, unions such as the Australian Services Union (ASU) and the Flight Attendants’ Association of Australia (FAAA) are finally seeing long-awaited progress towards fair wages and dignified treatment for aviation workers.

One of the most visible successes of the “same job, same pay” law has been the significant pay increase for Australian airExpress (AaE) workers, who are now on par with their Qantas Freight counterparts through an agreement reached by the ASU. For AaE workers, this shift is more than financial; it signifies fair recognition, particularly in an industry where labour-hire workers often receive lower wages than those directly employed. This sets a precedent in aviation and the essence of the “same job, same pay” principle: equal work deserves equal pay, regardless of the employment structure.

The law also impacts other roles in aviation, bringing equitable pay to cabin crew hired through labour-hire arrangements. Previously, these workers were paid significantly less than directly employed crew despite doing the same job. The legislation ends wage-cutting practices that have long underpaid labour-hire employees by closing this wage gap. This change not only provides a real boost in earnings but also acknowledges these workers’ vital role in keeping the aviation industry operational.

This reform goes beyond pay increases for Qantas workers; it challenges the traditional multi-tier system that allows companies to cut costs by hiring employees at different pay scales based on employment arrangements. Qantas has used labour-hire and subsidiary structures to fragment the workforce for years, weakening unions’ collective bargaining power and isolating employees into separate, lower-paid groups. The new law, which allows unions like the ASU and FAAA to advocate for equal pay across these structures, is essential for creating a more cohesive and equitable workforce.

Starting in November 2024, companies are now bound by Fair Work Commission orders to implement “same job, same pay” (SJSP) rules, pushing pay parity forward and breaking down the long-held practice of using labour hire to bypass enterprise bargaining agreements. For Qantas workers, it brings financial improvement and acknowledges the demanding, high-pressure work they perform daily. Labour-hire workers, who have historically been disadvantaged in pay and conditions, will now be treated equally, positively impacting morale, job satisfaction, and workforce stability.

The legislation also addresses a broader economic issue: wage stagnation caused by complex labour-hire practices that allowed companies to evade fair pay and benefits. These arrangements have kept overall wage levels low, cutting labour costs at the expense of workers. Enforcing pay parity through this legislation encourages wage growth and strengthens the position of collective bargaining, which creates fairer conditions for workers. The SJSP reform focuses on fair wages, which makes a meaningful contribution to overcoming years of stagnant wage growth that has weighed down worker incomes.

The work of unions like the ASU and FAAA in enforcing this legislation highlights the essential role of unions in holding companies accountable and advocating for fair workplace standards. Through Fair Work Commission applications and negotiations with companies like Qantas, these unions ensure that legislative victory translates into real worker improvements. Their dedication emphasises the importance of unions in securing progress, proving that without such advocacy, the financial and social benefits of “same job, same pay” might not be fully realised. By keeping pressure on corporations to respect these standards, unions are working to protect the rights and livelihoods of their members in an industry that is central to society and yet susceptible to cost-cutting tactics.

For the ASU, FAAA, and its members, the path towards fair wage growth remains ongoing. Yet the “same job, same pay” legislation marks a crucial win that extends beyond aviation and sends a message across industries that pay parity for all employees is achievable and essential. This reform demonstrates that companies must embrace fairness for their workforce, which will, in turn, contribute positively to the industry.

Corey Rabaut is a national industrial officer and lawyer at the Australian Services Union.