Australian unions challenge AI rationale for Qantas job cuts

Australian unions have challenged Qantas over plans to remove 850 jobs and send some corporate functions overseas, accusing companies of presenting offshore cost reductions as AI-driven change. The airline announced the cuts as part of an overhaul involving consulting firm Accenture.

The Australian Services Union, representing the affected workers, alleged that Qantas was using AI to disguise domestic job cuts. Australian Council of Trade Unions Secretary Melissa Donnelly called for transparency and meaningful consultation, warning that companies could invoke the technology to avoid accountability.

Qantas said consultation with unions would continue, with efforts directed toward redeployment and assistance for affected staff. It offered no response to the allegations of AI washing, a term for attributing layoffs to technology when broader cost-cutting may be the main driver.

Uri Gal, a professor at the University of Sydney Business School, described the Qantas plan as apparently conventional outsourcing. He said corporate work would move to Accenture, primarily in India, before being transformed through automation and AI. He urged caution about accepting the technology as the main explanation for layoffs.

WiseTech and Atlassian have linked job reductions to AI, while Telstra has cut positions at its Accenture AI joint venture and shifted some work to India. None of those three companies immediately provided comment.

The Reserve Bank of Australia said widespread job losses from AI had not yet emerged. It nevertheless noted tentative changes: hiring advertisements were weakening for occupations exposed to AI, while employment growth was stronger in roles less affected by it.