CAMERON STEWART AND STEVE CREEDY <li class="source ">From:
The Australian <li title="2013-05-16T00:00:00+10:00" class="date-and-time last">May 16, 2013 12:00AM
A ROMANCE with union leader Paul Howes is believed to have been a factor in Qantas's decision yesterday to strip high-profile executive Olivia Wirth of her responsibility for government relations.
The move is widely seen as smoothing relations with the Coalition but Qantas chief executive Alan Joyce denied the relationship was a factor in the decision and said it resulted from an internal review of marketing and branding.
"This is a promotion for Olivia," he said. "It's an opportunity for Olivia to be a central point for all marketing and corporate coms. That's a huge job and it isn't anything to do with her relationship with Paul Howes . . . She's been managing that extremely professionally . . . and we absolutely don't believe there's any issue there."
While Qantas has compensated Ms Wirth with an expanded job, The Australian understands the decision follows private complaints to Qantas figures from Coalition MPs about Ms Wirth's relationship with the head of the Australian Workers Union.
The complaints heightened concern held by some conservative members of the Qantas board that the issue could be problematic for the airline under a Coalition government.
But one aviation insider told The Australian the decision had "sexist" overtones, and queried whether a man would be removed under similar circumstances.
Ms Wirth and Mr Howes have both vigorously denied any conflict of interest in their relationship, despite Qantas's prolonged battle with airline unions.
Ms Wirth's replacement will be Andrew Parker, a former adviser to former Liberal leader John Hewson who is a former vice-president of Emirates Airlines.
Qantas has given Ms Wirth, 37, responsibility for marketing and brand, while she will also retain her high-profile role as head of corporate affairs.
In a note to staff yesterday Mr Joyce said the move was a "strategic refresh" prompted by a desire to strengthen marketing and communication of the Qantas brand.
"I have asked Olivia Wirth to expand her role to become group executive brand, marketing and corporate affairs, with group-wide oversight of the brand," he said.
The move means the head of marketing, Lewis Pullen, has been made redundant.
In a recent profile of Ms Wirth in The Weekend Australian Magazine, Mr Joyce said he did not see a problem with her relationship with Mr Howes.
"People have private lives and they are entitled to whatever relations they want to have and I think organisations and unions are sophisticated enough beasts to manage the process to avoid conflict," he said.
Qantas chairman Leigh Clifford has never commented publicly on the relationship. However, some Coalition MPs have been unhappy. One Coalition frontbencher told The Australian recently: "I think everybody was stunned. It sent a terrible message to Qantas staff."
Ms Wirth and Mr Howes revealed their relationship at Melbourne's Spring Racing Carnival last year, sending gossip columnists into a spin. As the airline's chief spokeswoman, Ms Wirth has been the public face of Qantas in recent years as it faced a series of crises. Mr Parker will join Qantas in the newly created role of group executive, government and international affairs.