The TWU is calling on the Federal Government to urgently step in and take an equity stake in Rex to ensure the airline can continue servicing critical regional routes, and safeguard workers’ jobs, as action today from ASIC creates further uncertainty for the future of the airline.
The TWU previously welcomed an announcement from the Federal Government that it would extend $80 million of support to Rex as well as ensure early access to entitlements for redundant workers who had been stuck in limbo during the administration process, but further action is needed to ensure certainty for the airline.
The TWU is also calling on the Federal Government to put in place and Safe and Secure Skies Commission to clean up aviation and ensure Australia has a functioning and reliable aviation industry into the future.
A YouGov poll in October showed more than seven in ten Australians (71%) support the Federal Government intervening to ensure Rex continues servicing critical regional routes.
And even more – three quarters (75%) – think the Government should take an equity stake when it bails out failing companies such as Rex.
A similar number, 74%, support creation of a new independent commission to set standards for jobs and services in aviation.
TWU ³Ô¹ÏÍøÕ¾ Secretary Michael Kaine said while ASIC’s legal proceedings were ongoing, it was clear the Federal Government needed to safeguard Rex’s future.
“Today’s action from ASIC casts further doubt on governance standards at Rex. Though legal matters will take their course, it is crystal clear we cannot let Rex fail, and the Federal Government must step in with an equity stake to get this airline back to where the community needs it to be.
“There is overwhelming public support for the Federal Government to step in and intervene with decisive action to save hundreds of aviation jobs, as well as critical regional Australian business, tourism, healthcare and community services.
“The Federal Government’s $80 million lifeline to Rex was a sigh of relief for workers who had been in limbo waiting for their entitlements, but those still with jobs are waiting for the axe to fall on them next. Meanwhile there is deep uncertainty for regional Australian travellers and businesses about whether these critical routes will remain operational. The Federal Government must keep Rex flying.
“Aviation is on a downward spiral. Just this year we’ve seen the collapse of Bonza and the administration of Rex. Without regulation to keep this industry in check we’re going to keep seeing good jobs destroyed, service standards through the floor and regional Australia left behind.
