This guy's salary: in my professional life, I have often criticised upper management - often whilst reporting directly to them.

Many times I have become privy to their real parameters, and almost invariably I ended up understanding where they were coming from.

Said driving forces are often gruesome: fire half the company, close shop, move to India, sell-off parts of company, outsource to the max, and so on. Often those parameters come from the Board, and the top dog has been chosen for that particular directive.

What I'm saying is: ultimately it's usually the board (or ultimate owner) that pay those dudes big $$ for a specific dirty job, possible outsourcing the workforce or closing shop in this case. Did he get the increase just to look good publicly? Unlikely.

Technically speaking, a few millions is a good ROI if he pulls whatever he's been asked to do well, esp. if it's bonuses.

surfnsirhiss said...

Paddy Irish F&%K its not the unions that will kill the company it the new CEO who has just recieved a 71% pay raise and is hell bent on breaking up a good company and sending it off seas to justify his producivity shares bonus SHAME SHAME SHAME strange that it was done when all the attention was on CHOGM

Anything to get the attention off CHOGM is good

Greenroom said...


So if you are a boss and you want loyalty... GET A DOG!

If you're a boss, you don't want nor expect loyalty. You expect commitment for what is paid for, none of that "today I'm only in at 62%" or "don't talk to me, I'm hungover" as someone told me recently.

People who do extra (which is nowadays nearly 100% only) do it not out of loyalty, but in order to get advancement or better pay - and that's OK.

Back to Qantas, unfortunately, to ask for a pay hike when your job can be outsourced is a risky business. It's not that the value of some workers has gone down from what it was, it's just that the same can be obtained cheaper in the new world economy.
I hope there's a resolve to all this, but it bodes not well...

I had a BBQ with a striking Qantas employee a couple of weeks ago. He said that Qantas has already ordered the planes that will be their new brand based in Malaysia, they are striking to try and save their jobs in the full knowledge that the company is seeking full approval from it's shareholders and Aussie Govt to shut it down and put another in it's place.

The airlines are now all about price pointed travel. People fly on price, not service and the Qantas model if you believe that does not work anymore.

The way we are going all that will be left is government jobs, digging holes in the mines and tourism.

Everything starting going to crap after Alan Joyce came in...

I blame:

1.- Qantas directors for getting the retard in... WTF he managed Ryan air a budget carrier, then another budget carrier Jet Star... then one of the best regarded airlines in the world, who did he root?

2.- Alan Joyce for being such a crunt.

3.- Australians for not running the crunt out the country.

And I think pay should be commensurate with company performance... eg: if the company net profit increases 5% then everyone gets a maximum 5% the following year.
Loses, work the same way - inflation.

Qantas could be run as a co-operative.



From their annual report: www.qantas.com.au/infodetail/about/investors/2010AnnualReport.pdf
Highlights of the year were:
— Underlying Profit Before Tax of $377 million
— Revenue of $13.8 billion
— Operating cash flow of $1.3 billion
— Cash held at year end of $3.7 billion

www.qantas.com.au/infodetail/about/investors/2009AnnualReport.pdf
Still comparatively good.

This is what it boils down to:
Alan: I can get pilots, and maintenance for 1/3 the price in Asia.
Unions: We need more money and job security.

Who is on strike here? this time it appears the mnagement is striking and grounding the airline.

CEOs should be paid on performance and qantas profits and share price are performing badly, Joyce ought to be sacked.

GalahOnTheBay said...

As someone else said, it is the biggest game of chicken we have ever seen in Australia. Pass the popcorn please!

Old mate Joyce thinks he can work the system and force an answer, but now that he has started down this path he very well may get a different answer to the one he anticipated.

kiteboy dave said...

Just a thought.. do you think maybe 97% percent of shareholders at the AGM voted to approve his pay rise because they knew he was about to become Australia's most hated man?

Ever looked at who holds the majority of Qantas shares?

Hint: It's not mom and pop...

....sick thing is , Joyce won't give a flying bat turd - he'll be paid his multi-millions regardless.

GalahOnTheBay said...

Ever looked at who holds the majority of Qantas shares?

Hint: It's not mom and pop...

Have you a managed portfolio in your super fund? Chances are your a shareholder too

Remember the Golden Rule: "He who has the gold makes the rules."

subliminal message?

Joyce has taken a leaf from abbott's book, next he will set fire to the aircraft

Interesting article:

www.watoday.com.au/national/qantas-ceo-has-gone-mad-say-pilots-20111029-1mpk6.html

If the QANTAS board representing the shareholders, want to base QANTAS in Malaysia or wherever then that is their right. The workers have the right to withdraw their labour. The company has the right to shut down their operations. The government has the right to do nothing as it appears to be doing, not because of any ideological non interventionist reason but because there are conflicting interests between its business mates and its union mates.

The powers that be should tell QANTAS this and advise them if QANTAS moves operations out of Australia then the domestic air passenger industry will be deregulated and opened up to foreign airlines. This would be a win for most airline travellers.

The main reasons QANTAS has a good safety record in Australia is the comparative emptiness of Australian skies and the clear weather we usually have. There is nothing intrinsicly safe about QANTAS as an airline.

This appears to be the end game of QANTAS being an Australian airline. Why does Australia need an Australian airline?

GalahOnTheBay said...
Ever looked at who holds the majority of Qantas shares?

Hint: It's not mom and pop...

It usually appears as National or Domestic Stocks on your super statement.

Maybe I could sell my virgin tickets on eBay make a motza and drive home - I'm at a conference in Sydney - guest speakers didn't arrive and half the people don't know when they'll get home - ps Richard Branson would probably have a nude blonde model to rub his hands together for him - and possibly other regions

Yeah it's serious. Why do we need a national airline? They seem to be a symbol of national prestige from the twentieth century. However as has been mentioned above airlines today are basically bus companies where people buy seats based on the lowest price.

So we have a decision to make. Do we maintain an an international airline in Australia that is not competitive internationally? I heard an airline analyst discuss this. He said QANTAS international operations are uncompetitive for a number of reasons.

Firstly QANTAS is competing against government owned national carriers who don't pay tax.

Secondly QANTAS being based in Australia is out of the way of international routes. Australia is not a hub for international travel.

Thirdly Australian based operations are more expensive than those overseas in Asian countries, primarily due to high airport costs, high taxes, a large amount of regulations and high wages.

So we have the choice of having a national carrier that has a very marginally profitable business or in some way having the non traveling public to subsidise the business. It is morally wrong for travelers who can afford to fly to receive a subsidised fare at the expense of the non flying public, many of whom could not afford to fly. This was the situation we had when QANTAS was government owned.

So unless we want to go back to that situation and pay for it through either higher taxes or lower public services we should understand why QANTAS wants to move operations overseas. However I strongly believe if they do move, QANTAS and its subsidaries should be treated like any other international airline in the domestic air market. QANTAS management is acting ruthlessly and they should be treated the same in turn.