Air Force Hits Back

24 October 2008

THE RAAF has told a Senate estimates committee that Boeing's loss of an F/A-18 Hornet maintenance contract was because its rival BAE offered better value with less risk.

The Canberra hearings came as the union involved in the 2005 Boeing dispute at Williamtown, the Australian Workers Union, called on the company to improve its retrenchment packages to departing workers.

Boeing's loss of the F/A-18 contract means that about 200 employees at Williamtown RAAF will lose their jobs at the end of next month, although between 120 and 150 are expected to shift across to BAE.

Paterson MP Bob Baldwin said Labor "revenge" for the 2005 Boeing dispute had been raised by some workers as a reason for the decision, leading the Opposition to raise the matter at this week's estimates hearings.

A spokesman for the Opposition's defence spokesman, Senator David Johnston, said that in reply, senior RAAF personnel described the decision as a commercial one.

"They said it was a competitive tender and that one side won and one side lost, and the side that won did so because it offered better value and less risk," the spokesman said.

AWU Newcastle secretary Kevin Maher said Boeing was refusing to consider paying "completion bonuses" that he said were standard in such situations.

"Like other employers in the area they should consider paying a completion bonus so that while our people are looking for new jobs they will put in the extra effort to work on what's left to do on site," Mr Maher said.


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