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Offline dodger

  • Tommy Gunna

  • Joined: Dec 2009

  • Location: Melbourne



Offline app


  • Joined: Sep 2008

  • Location: Adelaide
http://www.abc.net.au/news/2011-10-29/qantas-locking-out-staff/3608250

Alan Joyce sure deserves his 70% pay increase :rolleyes:

Easy to say that. In reality, whether I believe it or not, he is being paid to run a company and provide a return to shareholders.

Might turn out to be just a clever strategy, put the ball in the unions court by grounding the entire fleet to get the public angry with the unions and put pressure on them to resolve the dispute. Or just make everyone angry with him. Either way, I haven't seen this kind of action before.



Offline dodger

  • Tommy Gunna

  • Joined: Dec 2009

  • Location: Melbourne
Easy to say that. In reality, whether I believe it or not, he is being paid to run a company and provide a return to shareholders.

Might turn out to be just a clever strategy, put the ball in the unions court by grounding the entire fleet to get the public angry with the unions and put pressure on them to resolve the dispute. Or just make everyone angry with him. Either way, I haven't seen this kind of action before.

You may find the strategy is firmly with management, wait for the sale announcement of Qantas, but oh, there would be more buyers if the share price was lower wouldn't there, well well what a co incidence ;)



Offline dodger

  • Tommy Gunna

  • Joined: Dec 2009

  • Location: Melbourne
Quote
"Alan Joyce is holding a knife to the nation's throat," he said in a statement.

"No-one predicted this - because no-one thought [Qantas CEO] Alan Joyce was completely mad.

"This is a stunning overreaction. It is straight-up blackmail.

"I knew he was trying to kill Qantas, but I didn't know he wanted to do it this quickly.

"This is a grave and serious situation and the board should move to sack Mr Joyce immediately."

Mr Woodward says it is the saddest day of his 25 years with Qantas.

"Mr Joyce is stranding thousands of Qantas passengers all across the globe so he can engage in his mad game of one-upmanship," he said.

"All so he can pursue his delusion that Qantas should be an Asian airline, instead of an Australian one."[/[/u]quote]



Offline amgsl55

  • Tooth hurty

  • Joined: Feb 2011

  • Location: Adelaide
Easy to say that. In reality, whether I believe it or not, he is being paid to run a company and provide a return to shareholders.

Might turn out to be just a clever strategy, put the ball in the unions court by grounding the entire fleet to get the public angry with the unions and put pressure on them to resolve the dispute. Or just make everyone angry with him. Either way, I haven't seen this kind of action before.

I say good on Joyce for fighting the unions head on. Brings back memories of Corrigan and the stevedores.



Offline Chemical Man


  • Joined: Nov 2010

  • Location: Melbourne
Qantas has grounded all flights worldwide without warning, leaving thousands stranded.
Apparently this was all premeditated and they pre-booked thousands of hotel rooms days ago around the world anticipating stranded customers.
I wondered why the CEO asked for a massive pay rise yesterday........

http://www.smh.com.au/travel/travel-news/qantas-grounds-all-flights-20111029-1mpao.html

edit: Seems like I'm late to the party :doh: feel free to delete



Offline scud

  • 300kph+ club
  • Rocket man

  • Joined: Mar 2006

  • Location:
  • Drives:
When I heard the news I booked a virgin flight to Melbourne next Thursday in case Qantas is still grounded and I couldn't make my flight.



Offline JBO


  • Joined: Sep 2011

  • Drives: Something that doesn't meet my aspirations...yet...
  • Location: Adelaide
Explains why I cant get a decent 2 bed serviced apartment in Sydney for 11/12 November all of a sudden!

As for Qantas, brand image in the toilet...PR nightmare to negotiate. The next few days will not be pretty.

As for Joyce...congrats on your $2m payrise...great timing!
This anonymous clan of slack-jawed troglodytes has cost me the election, and yet if I were to have them killed, I would be the one to go to jail. That's democracy for you. - C Montgomery Burns.



Offline dodger

  • Tommy Gunna

  • Joined: Dec 2009

  • Location: Melbourne
I say good on Joyce for fighting the unions head on. Brings back memories of Corrigan and the stevedores.

I dont think the demands are great, management would like to see Qantas in the hands of the Asians, lower costs and so on, normally I'd be against the unions but on this one the strategy is clear.

So when do we buy QAN and will it be worth more in Asian hands ?



Offline app


  • Joined: Sep 2008

  • Location: Adelaide
I dont think the demands are great, management would like to see Qantas in the hands of the Asians, lower costs and so on, normally I'd be against the unions but on this one the strategy is clear.

So when do we buy QAN and will it be worth more in Asian hands ?

Read Dick Smith's argument to see how dire the situation is. Qantas is already paying above average industry wages and the unions are asking for much more. I'm not saying I agree or disagree with it. Even without these demands, Qantas' future isn't looking great in the environment of low cost airline carriers.

Quote
High-cost kangaroo of Qantas cannot continue, says Dick Smith

I ALWAYS fly Qantas when going overseas because I can afford it. But most of my friends don't, because they can't.I am amazed Qantas International is still in business. It's a credit to everyone involved.

But it's obvious that unless CEO Alan Joyce is allowed to make huge changes, the whole airline will go broke.

I can't understand why the unions don't get that.

Our skies have been opened up to cheaper foreign carriers. Our leaders - and we, the people - have chosen lower globalised prices, which can only be sustained by lower globalised wages.

If Qantas International doesn't get globalised wages it will go out of business.

That said, we can pay decent Australian wages to pilots - if they work the same number of hours in the cockpit as their Aussie pilot mates at Emirates, Etihad and elsewhere.

However, a greater percentage of cabin crew will have to be employed on global wages.

And while those employed in Australia to maintain its domestic fleet should be OK, an increased proportion of the maintenance for the international flights will have to be done offshore.

I have a number of aircraft and I have had to stop in Singapore and Dubai to have maintenance done.

The maintenance has been just as good - because the supervisors are Australian or are British. The actual workers are from the Philippines and they get paid roughly half the wage available here.

Consider this - about 30 per cent of an airline's costs are labour. Halving the labour costs means you can reduce your total costs by 15 per cent.

A typical airline's profit margin is 5 per cent, so you can see the difference a 15 per cent reduction in costs can make.

I do understand the unions seeing an unfairness in powerful groups such as the legal fraternity and politicians protecting their Australian wages and conditions while saying to typical workers, "Bad luck - you have to compete". If I was a Qantas worker, I would help management save every dollar and be as productive as possible - otherwise I'd know my job was doomed.

Dick Smith is a businessman and former chairman of the Civil Aviation Safety Authority
http://www.adelaidenow.com.au/high-cost-kangaroo-of-qantas-cannot-continue-says-dick-smith/story-e6frea6u-1226180292111

The risk in giving into unions demands is Qantas going broke or being put in the hands of foreign companies which would result in jobs being lost with operations going offshore. There would go our "flying kangaroo", what would be left of the airline that was Australian? Of course Qantas may be exaggerating how "extreme" the demands are but they do have problems in the future.



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