"Free Markets and Free trade = more competiton = more efficiencies = better prices, more jobs."
There is not an economy on earth that operates without some sort of protection or barrier from absolute competition, a mystical phenomenon that technically would produce zero profit.
QF (and most flag carriers) exists today because of Government policy that may have been appropriate at some point of time in history but without which we would not see the rat as it is today.
QF would struggle to survive even in todays market were it not for various protections offered by the Australian Government both in policy and (often subtle) practice.
QF (like most incumbents) is struggling to adapt to a changing market where the dominant carriers are no longer European and American but Asian and Middle Eastern with much more flexible work place practices than carriers in highly unionised countires such as Australia.
Comp and Benefits are only a minor issue when compared to the "job building" that has been the norm in carriers such as QF (and Ansett). Take a look at flight ops in agile carriers such as Southwest where staff (such as pilots) can in some cases earn more than thier counterparts at major carriers and yet offer efficincies far beyond those acheivable at Delta/United etc.
Can anyone explain why S/O's make sense?