The Qantas Airways Ltd (ASX: QAN) share price is descending today.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $9.00. In morning trade on Friday, shares are swapping hands for $8.85 apiece, down 1.7%.
For some context, the ASX 200 is down 0.7% at this same time.
This underperformance comes as hundreds of engineers lay down tools after lengthy negotiations with the airline over long-delayed pay hikes failed to reach a mutual agreement.
Here's what's happening.
Engineers want the Flying Kangaroo to loosen its purse strings
The Qantas share price could be catching some added headwinds today, with some 500 of the airline's engineers and maintenance workers going on strike early this morning.
The industrial action could impact travellers across the major capital airports of Sydney, Melbourne, Brisbane, Adelaide and Perth.
The strike will end tomorrow morning at 7:30am (local time for each location). However, if no agreement is reached next week, the engineers are preparing for another strike next Friday, December 20.
The strike comes at an inopportune time for Qantas and travellers as the summer holiday season kicks off and travel demand soars.
The industrial action was planned by the Qantas Engineers' Alliance, which is demanding a 15% first-year pay increase for the workers, who haven't seen a pay rise in three and a half years. The union is seeking a 5% annual pay rise thereafter, according to 9 News.
Commenting on the timing of the strike action that could be pressuring the Qantas share price today, Australian Manufacturing Workers Union national secretary Steve Murphy said (quoted by 9 News):
Workers have no other choice now, that during the holiday period, they will be taking industrial action to bring Qantas back to the bargaining table. Qantas is to blame if there's any disruption to commuters over the holiday period.
AMWU is part of the Qantas Engineers' Alliance coalition.
Qantas said it is prepared for the industrial action and doesn't expect any significant delays from the strike.
"Passengers should head to the airport as they normally would. As always, unplanned maintenance issues, weather, or other events may impact operations on the day," the airline said.
As for the pay negotiations, a Qantas spokesperson said, "We're offering our engineers a competitive package including pay rises, upskilling and career progression that will enable them to earn significantly more over the next few years."
Qantas share price snapshot
Despite today's dip, the Qantas share price remains a high-flying performer in 2024, up 65% year to date.
