Dispute grounds Qantas flights

29 October 2011 Last updated at 02:49 ET

The Australian airline Qantas is to ground all international and domestic flights with immediate effect due to an industrial dispute.

A statement said all employees involved in the strike would be locked out from Monday evening and flights grounded from 0600 GMT on Saturday.

Aircraft currently in the air will complete their flights, but there will be no further departures.

The airline has been hit by a series of costly strikes.

Baggage handlers, engineers and pilots have been involved in the action costing the company A$15m (US$16m) a week.

Total costs are estimated at A$68m, the company said.

Tensions between the unions and the Qantas management started in August after the airline announced a restructuring and outsourcing plan.

The union members have voiced their concerns against the proposal, saying it would result in job cuts at the airline’s Australian operations.

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