Fair Work Australia will hold a hearing in Melbourne on Saturday night to try to resolve the dispute that has left thousands of Qantas passengers stranded, after the airline suspended all flights indefinitely.
Workplace Relations Minister Chris Evans has written to the tribunal seeking orders to terminate all industrial action relating to the dispute over pay and conditions at Qantas involving three unions.
The section of the workplace laws being used by the government deals with disputes that could cause significant economic damage.
The hearing will be held at FWA's Melbourne registry and videolinked to the Sydney registry at 10pm (AEDT).
Senator Evans says if the government's application is granted all industrial action by both Qantas and the unions involved in agreement negotiations will stop.
"The government has acted in response to today's announcement by Qantas CEO Alan Joyce that he has grounded the Qantas domestic and international fleet and will lock out pilots, licensed engineers, baggage, ground and catering staff from Monday," Senator Evans said.
"This is a very serious escalation in what has been a bitter and protracted dispute."
If the application is granted the unions and Qantas will have at least 21 days to come to an agreement and no industrial action can take place during this period.
Senator Evans says if the parties fail to negotiate an agreement following the granting of the application, Fair Work Australia will then determine an outcome to settle the matter.
Mr Joyce told reporters earlier on Saturday the grounding was the only effective way to end the dispute.
"We are locking out until the unions withdraw their extreme claim and reach agreement with us," Mr Joyce said.
Mr Joyce said his hand had been tipped by the impossible demands of the three unions.
"They are trashing our strategy and our brand," he said.
"They are deliberately destabilising the company and there is no end in sight."
Transport Minister Anthony Albanese said the airline's decision to ground its fleet without advance notice to the government was a "breach of faith".
Qantas told the government it was preparing to take action after 2pm, three hours before Mr Joyce announced it.
"I think it is certainly a breach of faith with the government," Mr Albanese said.
"I indicated that very clearly to Mr Joyce this afternoon."
A taskforce is being established to help travellers who are affected by the groundings.
Jetstar, Qantaslink and Jetconnect are not affected by the grounding.
Qantas will lock out all employees who will be covered by the new ALAEA, TWU and AIPA agreements from 8pm on Monday.
Former Howard government workplace relations minister Peter Reith said it was the government's fault.
"The Labor government of course bears a lot of responsibility for what's happened," he told Sky News.
"They have made it easier for the unions to take strike action. The unions have got a whole series of totally unreasonable demands against Qantas."
The move comes as a result of a long-running industrial impasse between Qantas and three unions: the Australian and International Pilots Association (AIPA), the Transport Workers Union (TWU) and the Australian Licensed Aircraft Engineers Association (ALAEA).
AIPA President Barry Jackson says Qantas' move is extraordinary.
"It's really holding the country to ransom and as people have said it forces the government to take action," Mr Jackson told ABC television.
The ACTU is holding a teleconference of union leaders on Saturday night to discuss the way forward.
ACTU secretary Jeff Lawrence said the airline's management should reconsider their decision and get back to the negotiating table to get an agreement with their workforce.
"Alan Joyce needs to urgently reconsider this lock-out and grounding," Mr Lawrence said in a statement.
"This is a most unusual decision which is completely unwarranted, and will only hurt Qantas brand and customers."
Other airlines are working to rebook passengers on discounted fares and Qantas is offering full refunds.
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