I compared the EBA VIII proposal against EBA VII.
Firstly the Net profit after tax leading upto the EBA VII agreement date was
03/04 $648mil
04/05 $763mil
The EBA VII agreement was basically 3% plus $1000 as a Qantas stock issue.
There was flexibanking in HM and customer tail payments restrictions. Correct please.
This agreement environment has seen
06/07 $720mil
07/08 $1008mil (est)
In addition we have seen substantial remuneration by high profile management.
A $5.60 share price until recent stock market corrections ($4.60), strong yields from a bubbling economy on the back of the mining sector supplying China.
This agreement does appear to deliver a little more than EBA VII however considering the economic environments and think it should have. Additionally we have storm clouds on our horizon (inflation & int’ rates) whereas in July 2005 it was clear skies.
3% wage increase.
A 4year agreement would see us into the next election period. This government has inherited climbing inflation, and a contracting US economy that could collar the EU. China may also contract after 8-8-08 but more than likely will continue to be positive. The ALP are no certainties in 2010, voters have short memories.
Level 8 and below 1 service point – delivers about 1.8% to 1.3%, you would have received this in August anyway but it is a forward payment.
Superannuation SS – It does add to your investment however it won’t pay the additional mortgage payment increases as variable rates continue to rise. Again a small addition that cost Qantas zero dollars. Which is good, we do need this company to prosper.
Quotas release, Staff travel, Cert IV trainer payment, PCT and tank payments probably only affect a small percentage and appears biased to the senior highly licensed line guys. The A380 selection issue may only effect a handful of applicants. Read and believe what you will about the HM 330 and 737. Somewhat suspicious why DC didn’t include more detail in his lightning fast propaganda notice.
So basically this agreement does contain a lot more items then the previous agreement and there are segments of winners and losers. I do see now they (Alaea Exec) would have been working hard. I have relented slightly and expect a strong sell by the exec which will see this get over the line with minor grumbling.