While the long-lasting wage battle between Qantas and its engineers seems to have finally reached a truce, speculation continues over massive job redundancies.

Having experienced a series of industrial actions by engineers that Qantas blamed for the high rate of flight cancellation this May, the airline has now offered a five-year pay deal to its pilots.

Once officially ratified by the Australian and International Pilots Association (AIPA), the agreement will provide union members with remuneration in line with the airline’s goal of three per cent per annum more in wages plus one per cent in superannuation.

The deal will offer the company productivity gains, increasing flexibility and simplicity, while maintaining real wages and meeting the interests of pilots and shareholders, AIPA president Ian Woods told The Australian.

“The next couple of years might be tough but my genuine expectation  is that, come 2012 and beyond, this company will be one of the better placed, if not the best, privatised aviation companies in the world.”

The agreement also sets the pay rates for pilots who will operate the Boeing 787 jets that are soon to become operational, accounting for a large portion of the airline’s future fleet.

The results of the airline’s operational review, due to be announced next week, are likely to see job redundancies along with further service reductions and fare rises.

Media outlets have reported the possibility of up to 2,000 job cuts, or about five per cent of its 36,000-strong workforce as a result of the review.

“The continuing increase in the price of oil has necessitated a further in-depth review of all aspects of the Qantas Group, particularly how our flying business will operate in this new cost environment.”  Qantas CEO Geoff Dixon wrote in an internal email, the AAP reported.

“We undertake this review with some reluctance – knowing full well the effort put in and the changes accepted by all of us at Qantas over the past 10 years.

“However, the facts are that oil prices staying at over USD 140-plus a barrel has changed forever the way we do business.”

A Qantas spokesperson has made no comment on the job cuts, saying the reports were pure speculation.

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