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Emirates has announced that the company will review its contribution to Australian airport operations after being frozen out of the government’s JobKeeper scheme.
Last Friday, the federal government modified the eligibility rules around JobKeeper, preventing businesses owned by foreign governments from claiming.
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This week, government-owned Emirates Group warned that the decision to block foreign-controlled businesses from JobKeeper support put 4,500 of the company’s Australian employees at risk. A spokesperson for the company also stated that the current arrangement would confer an unfair competitive advantage on Australian-owned airlines.
The group’s international airport services subsidiary, Dubai National Air Transport Association (dnata), operates check-in, ramp and baggage handling, and aircraft cleaning services across major Australian airports. Dnata also provides catering services to Qantas.
According to the Australian Services Union (ASU), 4,000 of dnata’s Australian-based staff were temporarily stood down on 30 March. While dnata initially committed to rehiring almost all of these employees, the changes to JobKeeper legislation mean those jobs now hang in the balance.
“As a result, we are … forced to review medium, and long-term viability of dnata’s various Australian businesses,” a spokesperson for dnata said in an email, according to Reuters.
“The application of the scheme was critical to the company’s Australian employees, as it meant that we could reinstate previously stood down workers, and keep the rest of the workforce employed.”
Jay
says:Don’t forget airport security staff too.
George Mills
says:Why should Australian Taxpayers support and prop up multi nationals ( who often pay little or no tax in
Australia ).
It’s time the Australian Government restricted Multi nationals from owning and controlling our destiny !
David
says:unfortunately it is the dnata employees who are being punished, not dnata itself. The whole aviation sector is full of foreign ownership to some degree, yes even the beloved Qantas!
IDecimus
says:There is a significant difference between a multinational corporation owned by a foreign government and a multinational which is an Australian company listed on the Australian Stock Exchange.
Sahir Siddiqui
says:The money would have gone back to the Australian employees of dnata.
David Wilson
says:Sadly its Australian employees getting hurt here. Very poor decision.
Michael Motts
says:Australian Citizens, who reside and pay tax in Australia, are being denied a fundamental right of all Australian Tax Payers.These employees are paid in Australia, Taxed in Australia and the company pays payroll tax etc in Australia. An incredibly short sighted decision if implemented.
If this is applied then it should be applied to all foreign owned firms stating with McDonalds, Coco-Cola etc.
KPI
says:This is being done because it is owned by a foreign GOVERNMENT, not just foreign ownership and their government can dig in to their pockets to pay their employees.
Jack Chomley
says:Maybe we need home grown Australian companies to provide these sorts of services to the Aviation industry? In this current case, the employees are the meat in the sandwich?