Fed: Foreign ownership cap to impede expansion, wages: jackson

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Fed: Foreign ownership cap to impede expansion, wages: jackson

Qantas chairwoman MARGARET JACKSON says the federal government's refusal to relax theairline's foreign ownership cap will impede its ability to meet staff wage demands andexpansion plans.

Ms JACKSON says while Qantas accepts the government's decision to keep the airlinemajority Australian-owned, it will increase its capital costs by up to two per cent.

She's told a Melbourne Press Club lunch the decision puts pressure on labour costsand the airline has to continue to reach satisfactory wage agreements with unions.

She says this won't mean wage freezes, but will mean reasonable wage increases.

Unions have called for a five percent pay increase over two years for Qantas staff,but the airline has offered three per cent.

Last week Qantas posted a $428 million net profit for 2001/02, and announced an $800million capital raising program to fund a fleet upgrade.

AAP RTV ce/gfr/wjf/smb/rp

KEYWORD: QANTAS JACKSON (MELBOURNE)