In a motion moved before a NSW Labor conference at the weekend, Qantas Airways Limited
(ASX:QAN) could be prevented from employing overseas workers at its subsidiary Jetstar.
Current legislation requires the airline to have its headquarters in Australia and be majority Australian-owned and operated.
Unions fear the airline could bypass the act via its budget entity Jetstar.
The Transport Workers Union moved on Sunday that the proposed legislation include the entire Qantas group to support Australian jobs and prevent it from exploiting Asian workers.
Qantas has rejected the claims and says it pays above average wages offshore with Jetstar employing more than 30,000 people in Australia.
In the first half of the 2012 financial year Qantas reported a net profit of $42 million.