Negotiations between Qantas and two unions representing ground crew and long-haul pilots have collapsed, leaving the sides to face binding arbitration before the industrial relations umpire.

The Transport Workers Union, whose members include baggage handlers, ended talks with Qantas this afternoon, shortly after negotiations with the long-haul pilots' union collapsed.

The TWU's general counsel, Michael Burns, said the talks collapsed because the two sides could not reach agreement on job-security demands such as the number of contractors Qantas was wanting to use.

Binding Arbitration

The matters in dispute will now go to binding arbitration, although the pilots' union and the TWU will discuss with Qantas negotiators over the next few days those areas on which agreement is more likely.

Richard Woodward, the vice-president of the Australian and International Pilots Association, said negotiations between the airline and the pilots' union had ended this afternoon after the two sides failed to agree over the terms for efficiency gains of up to 20 percent sought by the company, such as pilot rostering.

Mr Woodward said Qantas had no interest in extending the negotiations for another 21 days, which meant that the dispute would now be resolved by Fair Work Australia.

For an extension to be granted, both Qantas and the union had to be in agreement.

"The talks have now broken down. This is about negotiating in good faith. Qantas is not willing to compromise," Mr Woodward said.

"We are very disappointed. We started in August last year with an intention of getting a deal done. But all along Qantas has been less than exemplary in these negotiations. They have taken a very hard-headed attitude to negotiations and have not compromised."

Mr Woodward warned that binding arbitration would drag on for months because of the "complex nature of the contract", and the union was likely to call on experts to discuss issues such as pilot fatigue.

Qantas was due to begin talks with the Australian Licensed Aircraft Engineers Association at 3:00 p.m.

Qantas "Did Not Terminate Talks"

Qantas's chief executive, Alan Joyce, said his preferred option had been to resolve the dispute with the pilots' union and the TWU through negotiations but it was "now time to let Fair Work Australia bring the matter to a close".

Mr Joyce said Qantas did not terminate the negotiations but both sides had concluded that an agreement could not be reached.

Qantas had made a "generous offer" to the TWU, which included reasonable increases in pay and conditions, and protecting the jobs of existing employees, he said.

He also said that the federal government had indicated it would vigorously defend the decision by Fair Work to terminate the industrial action three weeks ago, in the event that the pilots' union and the TWU purused legal action.

"We are right behind the government on this," he said.

Dragging on for Months

Mr Woodward warned that binding arbitration would drag on for months because of the "complex nature of the contract", and the union was likely to call on experts to discuss issues such as pilot fatigue.

The pilots union will also pursue legal action against Fair Work's decision on October 31 to terminate its protected industrial action with Qantas.

The first directions hearing in the Federal Court is scheduled for December 1.

The TWU will wait until a meeting of its hierachy on Thursday before deciding whether to also mount a legal challenge of Fair Work's termination of the dispute three weeks ago.

After Qantas said on October 29 that it would ground its domestic and international fleet and lock out staff within days, the Gillard government intervened by seeking a termination of the airline's long-running industrial dispute with the three unions.

Fair Work subsequently terminated the dispute, giving Qantas and the unions until today to reach a settlement or have the workplace umpire impose binding arbitration.