lower labor costs are one of the few ways in which airlines can gain competitve advantage. Pilots alone, maybe not. However QF are saddled with high labor costs in all departments and yes labor costs when viewed as a whole part of the business do drive where resources are allocated.
And not duplicating management positions is another. Do airlines in Australia really need numerous AOC's to run one brand with all the multiples of bureaucracy that come with it?
It's funny that airlines of all colours seem to think it's OK to fatten up management with duplicated roles yet are always running around looking for 'savings' from the staff.