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Couldn't QF pull an Aer Lingus?

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Old Oct 1, 2012, 10:48 pm
  #1  
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Couldn't QF pull an Aer Lingus?

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Last edited by ThomasBne; Apr 19, 2018 at 10:51 am
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Old Oct 1, 2012, 11:32 pm
  #2  
 
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Redundancy packages can only really be given out for genuine redundancies. Making a person redundant and then offering the same job to someone else a week later is strongly frowned upon and is likely to end up with union action, and a trip to FWA.

Even when a contract is up for renewal it's really hard to offer someone a pay cut, again without union action been taken against you, and FWA becoming involved.

Natural attrition is about the only option open to QF right now.
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Old Oct 2, 2012, 1:39 am
  #3  
 
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I thought the parallels were already there ....
  • Surrendering market to the LCCs/Competitors
  • Introduction of more and more fees
  • Positioning to leave oneWorld

What else have I missed??

Regards,

BD
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Old Oct 2, 2012, 1:46 am
  #4  
 
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Originally Posted by BD1959
  • Surrendering market to the LCCs/Competitors
  • Introduction of more and more fees
  • Positioning to leave oneWorld
Surrendering market - well when your cost base is so much higher and people are unwilling to pay higher fares, you don't have much choice.
As for the JQ argument, if QF hadn't started it, TT or someone else would be there.
Intro of fees - I think every airline around the world is doing this (eg. AA checked bag fees, $2 for headphones...)
Positioning to leave oneWorld - Where has this come from... QF has moved to be closer to key oneworld partners by shifting hubs to cojoing with AA and LA... The EK deal just reflect the inadequacies of BA (and LHR) into Europe.
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Old Oct 2, 2012, 1:50 am
  #5  
 
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Originally Posted by johnyip
With my understanding that some of Qantas FA's on the original contract earn up to $150,000 a year ...
The first question I would ask is whether the above is true. Is it?
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Old Oct 2, 2012, 2:41 am
  #6  
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Not AUD 150K in base pay or even with overtime, but the travel allowances are substantial and generous (ie. more than needed to cover actual costs so some portion can be banked). Plus many FA's (and pilots) wind up with some import/export business on the side. 744 captains average over AUD 350K per year and I think 744 FAs can make about AUD 120K net (A380 FAs are about half that as a point of comparison). Definitely a plum job, compared to most other airlines.
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Old Oct 2, 2012, 3:02 am
  #7  
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Already happens with international cabin crew

From my post on 19 Jul 2008. Link to the Australian still works
Originally Posted by serfty
Just remember, late last year the LAME's union rejected a deal comprising annual superannuation increases + a (then) inflation neutral 3% in wages.

Note, the International Airline Pilots Association has just agreed to a new pay deal that will hand long-haul pilots an annual 3 per cent pay rise, plus a 1 per cent increase in company superannuation contributions each year for the next five.
Just as cabin crew union accepted a new deal in Feb. From the Australian on 23 Feb 2008 Qantas to hire 2000 crew on lower pay
QANTAS wants to use an agreement that is allowing it to hire 2000 new flight attendants at lower pay rates and longer working hours as a template for negotiations with other unions.
...
..
The agreements protected the wages and conditions of about 3000 existing international flight attendants but allowed the airline to hire new cabin crew for about 25 per cent less pay and work them for longer
...
The new flight attendants will work for a subsidiary company set up last year, Qantas Cabin Crew Australia.

They will work for about 240 hours per eight-week period, compared with 182 hours for existing staff.
What Australia has, that many overseas business do not have to the same extent, is the tremendous number add on costs to the direct hourly rate:- 9% superannuation [paid in cash every quarter], workers compensation insurance, payroll tax, training levies, holiday leave loading, annual leave (more than in many countries), paid statutory holiday (more than in many countries), long service leave, maternity leave and many more. Adds at least 30% ~ 50% to the headline hourly rate

Last edited by Mwenenzi; Oct 5, 2012 at 4:48 pm
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