Elmar
The answer is yes. I do think CEO's of large companies are entitled to generous packages. And no, I don't think salaries in the millions of dollars are excessive. Even more galling to you would be my belief that Dixon probably has a family, and is just as entitled to a holiday as everyone else.
The constant Dixon bashing on this forum, crikey and within the ranks of Qantas employees is classic tall poppy syndrome. I would be interested to know what YOU think a CEO is worth. Give me a figure. And more to the point, give me a rationale on how you arrive at this figure.
At the moment the market dictates management salaries. To get the people you want, you pay a certain price. Sometimes that price is high, but if you don't pay it, they walk. Its a perfectly rational way of determining salaries.
Compare this with other employees. What determines our salaries? The market? No! Try history, union obstructionism and the constant threat of industrial action if we don't get our own way.
I may offend people because I don't look at the industry from a pilot's perspective...I prefer to take a commercial view. To my mind, creating efficiencies involves pain of a short term nature only. You may have to pay for your endorsement now, but the equation is very simple. Efficient industries equals a more price competitive product. A more price competitive product equals more opportunity for growth. More opportunity for growth equals more jobs, albeit initially at a lesser rate. More jobs equals more opportunity for promotion, which in turn equals a skills shortage in the labour market. A skills shortage in the labour market in the long term equals sustainable increases in wages and conditions for those professions where the shortage exists.
From a pilots point of view all of the above can be translated in one simple phrase...greater efficiencies equals greater growth equals more aeroplanes equals faster promotions equals better career opportunities and better career opportunities lead to retention problems and therefore better pay and conditions.
I have been telling people this for as long as I can remember. All the doom and gloom re pilots conditions was only a short term thing. Sure there is some short term pain, but the efficiencies and success of new generation airlines will be their downfall when it comes to keeping a lid pilots salaries. Look at Singapore - the LCC's and SilkAir etc are desperate for pilots and have significantly increased salaries. Look at Jetconnect - desperate for pilots, losing guys left right at centre, a significant pay increase, and still a shortage of crews. And wait until Jetstar pilots start accumulating significant A320 experience - it will be carnage and I can foresee uncrewed aircraft parked against a fence. Even now, I know two low time guys who haven't flown in 3 YEARS who have just picked up FO jobs overseas. These are long term, sustainable improvements in the labour market that are driven purely by supply and demand.
Sadly for flight attendants, the above will operate in reverse. Why? Because its a job requiring little in the way of qualification, and there will NEVER be a shortage of capable people. On the contrary, there will ALWAYS be an oversupply of candidates willing and able to do the job. All they can do is rely on their OBSTRUCTIVE union to protect what will prove to be the unprotectable. Virgin appear to have happily satisfied the regulator with their mix of hairdressers, beautitions and receptionists, so do you think 85K plus is justified for Qantas' pampered mix of licorice all sorts? Unlikely.
Look at the FAAA's attitude towards Australian Airlines. The company wants to grow and operate longer routes, and the FAAA claim amongst other things a 17% pay rise and preferential bidding. Essentially they try and turn it into Qantas. Well d'oh, the closer it becomes to Qantas, the less reason for anyone except Qantas to do the flying. But of course Qantas can't fly the routes, because they become uneconomic, and the flying is lost, together with the jobs. Congratulations FAAA, you've increased the pay and conditions, but you've killed the goose that laid the golden egg. Australian Airlines? RIP.
As a labour voter and a passionate critic of our esteemed Prime Minister, the above views may appear a little inconsistent. However, I try to look at every situation on its merits and react to what I observe. And what I observe from the Qantas cabin crew and the FAAA when viewed on a reward for effort basis is blatantly wrong. I never thought I'd say this, but I hope little Johnny Howard gives Dixon a hand in his quest to rip the FAAA apart.
FT.
Last edited by Flying Tiger; 14th Jan 2005 at 02:32.