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QFinsider
19th Dec 2005, 21:13
Despairing of late, I have began asking myself why the management of the company is so outwardly aggressive to staff.

Being a person who has been employed in a variety of professional capacities before this, I cannot fathom the aggressiveness.

nothing I have seen before explains it, my own experieince wearing management shoes didn't prepare me for this, nor has anything I ever learned at university.....

Is sad that an icon is being destroyed...Morale is horrendous all over..Doesn't matter the department doesn't matter the employment. Everything is aggressive. Why?

:ugh:

wayne_king
19th Dec 2005, 21:26
Because Geoff Dixon makes Pol Pot look like a people person and the rest of the management think he's leading by example. Sad isn't it.:ouch:

captainrats
19th Dec 2005, 22:53
Its simple...... they are largely dysfunctional individuals who have risen to their own level of incompetence.
They are either tall women in comfortable shoes or short men in shoes that are way too big.
Have a conversation with anyone in management you will quickly find that they have zero personality.
They are just not people people.
Many came from TAA with no skill set to run an international airline
Evidence the plastic tubing on water boilers.What a crock.
When you have no skills and you are in a position that requires them, you are aggressive to anyone and everyone to keep them at a distance less they discover your dirty little secret
ie.that you are incompetent.
A drover's dog could run QF and still make a tidy profit.
Hope VDD retires early and takes a few(a lot)of his self serving cronies with him.

Beech Boy
19th Dec 2005, 23:30
Attack is the best form of defence by the sounds of it.

numbskull
20th Dec 2005, 00:49
Its simple really.

Their tactic is to make everyone so disgruntled that employees will want to leave of their own volition(this will save them heaps in redundancies).They can then hire new starters in Jetstar under vastly cheaper contracts.

Those that can't afford to leave because they have mortgage,school fees etc, have no choice but to cop whatever management dish up and everyone knows it.

Either way QF management is a winner and its obviously easier to be aggressive and simply take the stance "Well thats the way its going to be and if you don't like it , then leave" (as per the sentiments of GD and MJ)

sys 4
20th Dec 2005, 01:07
it would be cheaper for Qantas to retrench me ruther than piss me of as they do,because these days i do next to no work.
It's a case of lets see how little i can get away with doing today,it's a great little game we've got going with them.
Would of been cheaper to retrench me a couple of yrs ago.

oh yeah there seems to be more and more people playing the game ever day.
It's very popular.





And I assume you get this warm, fuzzy feeling all over every pay day knowing you are reaping the benfits of other's labours?

With your philosophy, people skills, superior ability and managerial skills I'm very surprised you are not Board Chairman or at least CEO of a major and highly profitable aircraft engineering organisation?

Or do you feel some frustration with your inferiority complex?

Woomera

kiwiman
20th Dec 2005, 01:59
Sorry sys 4 - who were you saying is dysfunctional?

Animalclub
20th Dec 2005, 05:34
sys4 ... perhaps you can see why GD has to be the way he appears to be. If everyone pulled their weight there may be no need to export jobs overseas. (No I'm not having a go at engineers... isn't there some talk of call centre and admin jobs going overseas?)

Apophis
20th Dec 2005, 06:42
SYS 4 thats the same game we play at avalon because if you try to work faster and better you get s#%t on from those above so now many do as little as we can and even get praised for the job we are doing those above are clueless as to whats going on.

Turbo 5B
20th Dec 2005, 08:58
Perhaps if QF didn't spend so much time and money trying to erode my conditions and wages then I wouldn't spend so much time resisting them and my actual productivity would be much higher.
Look after your workers and they'll look after your business!

numbskull
20th Dec 2005, 10:29
What has got me buggered is how anyone thinks that I am going to be more productive when these new IR laws come in.

Costello says the Australian workforce will be more productive but the unions say it will reduce pay for shift workers 15-20%.

As far as I am aware, once my EBA expires then only 5 things are guaranteed(and it is the same for everyone in Australia-no more awards!!!)

1 minimum hourly rate(same for everyone approx $12 p/hour)

2 2 weeks annual leave

3 12 months unpaid maternity/paternal leave

4 10 days sick leave(with certicate)

5 ?- can't remember the last one

Please don't tell me QF won't take advantage of these laws to my detriment.

Every couple of months GD threatens to sell off its engineering capability. Getting very sick of him crying wolf- wish he'd just shut up and do it.

As much as I despise the attitude that sys 4 has I am beginning to lose hope and maybe that's the only way to stay sane!!???

More productive???? I don't think so!!!!!

sys 4
20th Dec 2005, 11:56
i must say when i first arrived at QF i was one of the hardest workers in engineering,but management have taken that away pretty quickly,with their F*CKEN constant hammering at our wages,stafftravel,super,etc,etc.
F*ck them.Treat me like a C@NT,and i will act like a C@NT.




Simple solution. Move on and make the dollars you believe you are entitled to and worth.

Or do you lack the intestinal fortitude?????

People with your attitude really haven't done much to build Australia, have they?

Thank God there are some real people left in Australia!

Woomera

Blue-Footed Boobie
20th Dec 2005, 18:09
It seems aviation in Australia brings out the best in poeple eh!

BFB

captainrats
20th Dec 2005, 21:00
If Aviation was managed properly it WOULD bring out the best in people.
This is definitely not the case.

Mr.Buzzy
20th Dec 2005, 21:12
Finally! We dont seem to be blaming pilots at QF or VB or Jet*! We now have a common cause (IR) and maybe now some good labour solidarity may prevail.
Most workers, regardless of industry are tired of working harder for less pay and conditions!
Less workers, having to work harder and paying ridiculous levels of tax to support the growing number of hard luck, bludging f*ckers that are being shown how to "work the system" by our very own government.
Just wait til Dicko and the rest of his money grabbing corporate mates realise how easy little Johhny is making the importation of labour.
Make sure you leave your kids a good wad of money, a PC and a good background in playing the stockmarket, cos if this rot continues they can forget about working in this country.

The cycle is coming and revolution is nigh!!!!!


bbbbbbzzz...where's my valium...bzbzbzbzbzzzzzzzzz

sys 4
20th Dec 2005, 21:15
Woomera i'm also surprised that i'm not chairman of the board,because any half arsed monkey could do the job, and no i don't have an inferiority complex i'm just waiting for a package.then i will be on my merry way to a much more forfilling carrer,riding donkeys.


One last question would those real people that are left in Australia, be the managers and Politicians that are running Australian families down,telling them to take pay cuts(on already low wages) to stay competetive with China,are these your real people,are these the people that you look up to.


The people that are telling as to take pay cuts while appointing themselves massive wage increases.



Is a good days work trying to screw the people that work for you,by trying to reduce their wages by 20 %

HI'er
20th Dec 2005, 22:38
Woomera, I'm quite surprised to see a comment by YOU, tacked on to the end of another poster's comments.

The title of the thread is quite clear, and from many posts here, it appears that QF management (like many other "New Age" airline management), are forcing their employees into a smaller and smaller corner, whilst the Government removes the teeth of the employees ability to effectively retaliate, by amending the IR laws.

sys4's response was, in essence, the "I am an army of one" type.
Your (Woomera's) criticism of his post, wherein he stated that he joined QF, and worked diligently (as a "real Australian"), and as per his contracted conditions, only to later have his conditions abused, is seen by me as taking sides in this debate - which you obviously ARE entitled to do.
But NOT as a moderator.
Fair comment?

Turbo 5B
21st Dec 2005, 00:08
I agree 100% with the last post.
If woomera feels that he/she needs to make a personal comment on SYS 4's feelings then he/she should log on as an independant poster and make those comment's, not make them in their capacity as an independant moderator.
p.s Any one would think that woomera was trustee 1,sorry fed treasurer of the alaea with comments like that.

sling load
21st Dec 2005, 01:12
Qantas aims to fly further, faster
21 December 2005
By ALAN JURY
Australian Financial Review

With the record A$24 billion (NZ$25.9 billion) order for up to 115 new Boeing aircraft, Qantas chief executive Geoff Dixon has cemented his legacy as one of the most successful and dynamic airline bosses in the world.


Playing on a field that is tilted in favour of many of its international competitors, Australia's national airline has emerged as one of the most efficient and best managed companies in an industry better known for its corporate failures.

Qantas has flourished under Mr Dixon's stewardship. It is one of only two airlines in the world to carry an investment grade credit rating from Standard and Poor's and is the only international carrier to do so.

Earnings before interest and tax have compounded by 12.5 per cent a year even though revenue growth has been only about 5.5 per cent a year. Thus earnings before interest and tax margins have risen from 6.8 per cent in 2001 to 8.9 per cent last year.

Qantas has almost 4000 more fulltime employees and 10.5 million more customers than it did when Mr Dixon took over in March, 2001.

Qantas shareholders have not shared in the largesse. According to a Bloomberg analysis, Qantas returned 61 per cent to investors (share price gain plus dividends) during this period, or 10.4 per cent a year. This is about 1 per cent a year less than the comparable return on the ASX 200 index.

One of the main reasons Qantas was able to report record profits last year was its success in containing costs, especially fuel which represented 17 to 19 per cent of total costs, up from 13 to 15 per cent in 2004. In other words, fuel as a proportion of total costs rose about 25 per cent.

"This compared to a 51 per cent increase in the average price of jet fuel during the year, with Qantas' fuel-hedging strategies, other cost reductions and a stronger Australian dollar limiting the impact of fuel prices on its financial performance," Standard and Poor's says. "Although Qantas remains fairly well hedged, management has indicated its fuel costs could rise to about 30 per cent of its operating costs in fiscal 2006 and if prices are sustained at high levels the airline's earnings are likely to fall, despite further reforms to improve its cost structure."

A key ingredient in Qantas' performance has been the successful introduction of Jetstar. The low-cost domestic subsidiary gives the airline a strong competitive position in the high-volume, price-sensitive leisure segment and has helped protect yields and consolidate its domestic market share at about 66 per cent.

More flexible work practices in Jetstar have allowed Qantas to remove costs from its full-service businesses while still competing head-to-head on high-volume routes with Virgin Blue.

Qantas is planning to export that model (as is Virgin Blue) and the new Boeing Dreamliner planes will be an important component.

Composed of lighter composite materials and filled with new technology, the Dreamliners claim up to 20 per cent better fuel efficiency and up to 25 per cent lower cost per available seat kilometre than the Boeing 767s they will replace. Put simply, they can fly further faster and for less money – making them a key component in Qantas' cost reduction plan.

AdvertisementAdvertisementBut they are going to cost a lot, even with the price discounts that Qantas will undoubtedly get from Boeing for effectively becoming its biggest customer, taking one in every five Dreamliners to roll off the production line.

The 65 planes committed (45 firm orders and 20 options) will cost about A$9.5 billion, according to Citigroup analyst Jason Smith. This compares with a list price of A$12.6 billion. But this cost doesn't include any engines, with Qantas due to decide between Rolls-Royce and General Electric next year. The engines could add another A$1.5 billion to A$2 billion to the cost of the planes. This is on top of the A$2.5 billion Qantas is spending on Airbus A380s. And if Qantas decides to take up its rights to another 50 Dreamliners, that's likely to add A$7.5 billion.

The result, according to Morgan Stanley aviation analyst Chin Lim, is that Qantas' capital spending will remain high for a longer period, absorbing most of its operating cash flow and leaving a very low level of underlying cash flow for investors. The only way to avoid this would be for Qantas to lift gearing beyond the 50 per cent it has targeted to protect its investment-grade credit rating.

"We believe that if Qantas was to maintain an approximately stable proportion of leased capacity, and so place most new aircraft on the balance sheet, `underlying' free cash flow would remain near zero through 2009. We estimate therefore that it may be difficult for Qantas to lift dividends, so we think it may elect to increase the proportion of capacity that is leased so as to improve the `perceived' free cash flow."

The market is certainly warming to the story. Qantas shares were up more than 6 per cent last week and are trading at their highest in three years. Even so, they still offer a fully franked dividend yield of slightly more than 5 per cent.

If the government decides to relax the foreign ownership restrictions for institutional investors, demand from overseas investors with a greater ability to compare Qantas' achievements with those of other carriers might push the shares toward previous records around A$5.

Angle of Attack
21st Dec 2005, 01:47
Yeah SYS4 has his right to a point of view. Its a two way street out there, if your being shafted why not shaft back?? Every right to IMHO. He doesnt need intestinal fortitude to go overseas because he's doing minimal work for the salary!! Good on him.

If being a real Australian means consistently lowering salary and working the same or more for it well, thats news to me, oh yeah, I forgot being a real Australian means becoming more like the yanks, or thats what what we are supposed to believe judging by the words of our esteemed leader, with a bucket-load of propoganda from the "independant" media here in OZ, umm did I say Media or big business? oh forgot..

Seriously people dont get bitter and twisted like SYS4 unless there is a reason for it, which seems to be, the subject of this thread, Agressive management...( in my opinion its being supported and encouraged by this present government/media) Comments?

kiwiman
21st Dec 2005, 02:20
Sys 4 does have the right to act as s/he sees fit. However, when you act like s/he is you, lose the right to take the righteous high moral ground.

There appears to be a conflict in what people are saying - on the one hand, they have tried working hard only to be pounded down by management - on the other, the management is trying to get more efficiency into the business. Something doesn't tie up here.

Senior management will always seek to maximise profit. It seems to me that it is not the senior management that are causing the issues for the people on the ground, rather it is the middle management. These are the guys that are meant to keep motivating the workers and balance the profit focus of senior management. Qantas middle management has swelled in recent time - it is within these ranks that people have been promoted to the level of their incompetence and it is within this level that people are giving away efficiency on the ground in order to protect their jobs.

Every employee claims they can do a better job than the senior management or the board - perhaps that's why there is a high evel of dysfunctionality in the ranks.

Sunfish
21st Dec 2005, 03:39
Sys 4, with great respect, you would not last one meeting as a Director of a public company of Qantas's size, and neither would I, because I don't have the stomach for it.

The trouble with the "lean and mean" approach to business is that it has completely reversed both the responsibility levels, rewards and time horizons of management and the workforce.

IE:

1. Geoff Dixon does something wrong.

(a) Ten years down the track, QF becomes aware it made a wrong decision.

(b) The consequences appear ten years down the track. GD doesn't care. He is retired by then.


2. A LAME does something wrong.

(a) Within days or months, something fails.

(b) The consequences might be that people get killed. The LAME has to wear this.

Yet, GD and his ilk are rewarded by an ANNUAL bonus. And LAMES have to go cap in hand to get anything at all every three years or so.

So you have people who should be making LONG TERM decisions rewarded for SHORT TERM performance.

And the people who should be making the effective SHORT TERM decisions are rewarded (if that is the correct word) on a LONG TERM basis.

Net result: The long term thinkers start thinking short term. The short term thinkers try and think long term, give up and voila! You have an attitude like sys4 replicated throughout the system.

And in case you think that this is irrelevent, look at the thread on BA's maintenance woes in rumours and news.

Since GD will be gone from QF long before his 787's arrive, all he really cares about is telling a good story to the market.

robair
21st Dec 2005, 03:51
Because they are pricks:}

captainrats
21st Dec 2005, 08:02
In a recent article in the Fin Review,the new Business Council of Australia President (Michael Chaney)indicated that....
"any sensible businessman or woman understands that in order to succeed in your enterprise you need to have a motivated,committed workforce and any slash an burn policies would be short term and counterproductive."
.......ergo Dixon is not sensible

Mr Qantas
22nd Dec 2005, 01:30
Sys4- Is it any wonder that management neeed to cut the wages by 20 % when with attitudes like yours you are a disgrace to engineering.

Agresive management may just be what we need to survive in these troubled times. How do you expect we compete with Asian mro's when idiots like sys 4 earn over 100k per year to dodge as much work as posible. We need to weed out the fools and take a good hard look at what each of us can do to keep the ship afloat. If that needs a wage cut then so be it.

Uncommon Sense
22nd Dec 2005, 01:36
If Mr Qantas really is one of the captains of the ship, then we had best start writing the eulogy for what was once a fine airline.

There seems to be a suicidal determination amongst it's leaders - if not for their own fate, but certainly for the fate of QANTAS.

Sunfish
22nd Dec 2005, 01:55
I assume Mr. Qantas, that you will volunteer yourself for a 20% paycut, or are you like the rest of us that are quite prepared to believe that we are indispensable, God's gift to the company, and look on everyone else as bludgers who don't deserve their pay?

The reality is, as SyS4 observes, is that he can sit back and do SFA and not only won't management know about it, they are still paying his wages.

This is at the root of my contention that the lowly paid workers on the line have more impact on immediate profitability than a thousand "Managers" and therefore the wellbeing of the workers is more important than the well being of the management in a well run company.

WHat do you think will happen if the poor staff think they are all going to lose their jobs overseas? Do you think they will still do their jobs to the best of their abilities until the company tells them to piss off?

Do you actually think that anyone today would dare to use the "L" word - "Loyalty"?

What happens when a mechanic says "ah stuff it" instead of replacing the fastner he has just accidently cross threaded five minutes before end of shift?

What happens when a flight attendant or check in person decides they are no longer interested in giving "exceptional" service and start telling customers where to get off?

How do you manage that from head office???? The answer is you can't.

Furthermore, the damage caused by the bullying and bull**** is cumulative and it takes years to appear.

To put it another way, how is Qantas going to make a profit with its new A380's and 787's if they are operated by a sullen and incompetent crew, serving crap food, and with minimal seat pitch?

Oh Yes, QF has the ear of Government doesn't it? That should keep the aircraft filled.

sys 4
22nd Dec 2005, 02:35
again MR Qantas you idiot i'm not on 100k p/a,try half that you fool.maybe your on 100k p/a due to your ability to suck management c0ck.
and you have miss the point i don't want to compete in these bumper times with Asian MRO's my employer does just fine,i think they made something like 1 BILLION DOLLARS this year,and for this they want to cut our wages by 20 %.
your a MOORON Mr Qantas


Sys 4 is taking a well earned rest until New Year, whilst he studies his PPRuNe manual on couth and culture!

:mad:

Woomera

soldier of fortune
22nd Dec 2005, 02:45
mr qantas you stupid old c..t--as usual it doesn't take long for the f..kwits to come out of the hole and throw bull**** around.
-only a handfull of super level12+ ma rated globe trotting alaea and management c..k sucking lame f..ksticks are on 100k + the rest of us have to eat **** and have to enjoy it -the ones in heavy have to eat theirs with cream on top -because they are getting their hard fought conditions taken away with the alaea blessing.
so go any bury your head in the sand and shut up idiot

to wommera you will proberly moderate me - i am sorry but mr qantas is a ********


Yes - how perceptive you are!! :mad:

Soldier of Furtune is taking a well earned rest until New Year, whilst he too studies his PPRuNe manual on couth and culture!

:mad:

Woomera

Pass-A-Frozo
22nd Dec 2005, 02:48
Sounds like it's the employee's who are getting aggressive, not management . :E

soldier of fortune
22nd Dec 2005, 02:52
same goes to you too. ***MAN A FROZO or maybe change your name to PLEASE INSERT THAT ROD IN MY ***HOLE A FROZO.
----YOU STOOGE----

Pass-A-Frozo
22nd Dec 2005, 03:10
The prosecution rests...:ok:

I suspect somebody has been having Thursday afternoon drinks.

soldier of fortune
22nd Dec 2005, 03:34
yeah -pass a frozo will you:ok:

rammel
22nd Dec 2005, 05:35
Now why should anyone take a pay cut. The goodwill at QF by the staff was immediatly after Sep 11 with their pay freeze. Since then GD and his pals have tried to cut, or if our wages have risen it has been less than inflation.

The only way QF will cost the same as the asian mros is if we agree to work for $10 a day if that and a bowl of rice. Till that happens our costs are always going to be higher. Another thing that makes our costs higher are all the workcover/safety costs. I'm not saying we need to work unsafe or cut corners, but these departments in every area just seem to keep growing. End of rant for now.

lowerlobe
22nd Dec 2005, 05:36
What annoys me apart from people like Mr Qantas who think it is ok for other people to have a 20% pay cut and don’t put themselves in that group is the upper managers and board members who get huge bonus’s not to increase market share or develop new products but to slash employees pay in other words taking the easy path.

This is one reason why our share price has not increased because the market knows that our profit is more to do with slashing costs and not spending money on plant and equipment and developing our product and routes.

GD keeps on saying that sourcing maintenance and other services overseas can save 20% but I’m sure we could find managers and board members overseas a lot cheaper than that.

Mr.Buzzy
22nd Dec 2005, 05:40
Too true, I'm sure there is a Kiwi CEO somewhere just itching to get a slice of the QF pie!

bbbbbbbbbbbbbbbbbzzzzzzzzzzzzzzzzzzzzzzzzzz

domo
22nd Dec 2005, 06:43
Whats all this about a 20% pay drop.the company is talking a shift change this means that you will not get shift allowance any more the basic pay is still the same.

no need to get excited and abuse people who dont agree with you why did you not take redundacy when it was offered

This new tough line is to make people leave

Qantas love it or leave it

sys 4
22nd Dec 2005, 07:41
domo have you had a look at the AME's offer from the company,before you make comment ensure you are informed

Turbo 5B
22nd Dec 2005, 20:15
My average shift allowance has been 28% for 15yrs. It increases my gross wage from 52K to 70k aprox.
I live within my means, but my means includes a shift allowance that I have had for over a decade.(or am I supposed to put that money aside each week in cases of a rainy day)
If QF makes a serious inrode into that allowance it will drastically affect how I manage my life. To have to find an extra 10k to 20k a year with out spending many extra hours a week at work (at single dollars soon I imagine) would be a very difficult thing to do.
Domo...I don't mind the job, but it is hard to love something that keeps trying to bite you and calls you uncompetitive and tries to take your money.
Mr Qantas...You deserve a place on the Alaea executive.

sys 4
23rd Dec 2005, 03:16
i'm starting to think Mr Qantas is some sort of computer that spits out company rhetoric whenever there is a negative comment or word said about Qantas,i'm shore microsoft have software for that

BHMvictim
23rd Dec 2005, 10:22
Howards' a smart man huh!

If my pay drops 20%, I shall have to reduce my spending. Likewise, all other Aussies in the same predicament. This means I buy less things. This means less sales and less profit for businesses. This means less of a requirement for jobs in sales. This means more unemplyment. More unemployment means more poor and more poor means less people able to spend. Viscious cycle!

I may not be a smart man, (I STILL work for Qantas), but I think the outlook is fairy clear.

Uncommon Sense
24th Dec 2005, 01:27
Mr QANTAS,

If you are firm in your beliefs why not post your name, address and phone number so that those who take a slightly different approach can contact you for some tea and bikkies?

lowerlobe
24th Dec 2005, 11:32
Domo and master Qantas of the kirribili young liberal party,

I’m sure that GD is not going to relinquish or reduce his bonus to help the company’s bottom line so why would you expect other people to be happy with an offer of doing the same job for less..why don’t you take a redundancy package as you yourself has suggested if you think it is easy to find a job elsewhere especially if you have a family and committments

relax737
24th Dec 2005, 22:47
QF insider, topic starter; why is Dixon so aggressive??? It's difficult to screw somebody nicely, so you do it nastily.

It's easier to intimidate the staff and they're less likely to want to comeback for another go. Think about it; if somebody snaps your head off over something, you're more likely to shut your neck and wonder where you went wrong than take him on over it.

That's what QF management is doing to the staff, and at the top is the head R sole, Geoff himself.

Simon Templar
25th Dec 2005, 03:12
Branson seems to have mastered the art.
Doesn't pay well, but gee morale is fantastic

lowerlobe
25th Dec 2005, 04:50
Yeah I agree that on the surface Branson is all PR and fun and he hires a certain type but I remember last easter when the ground staff in sydney had to wear easter bunny ears , it looked ridiculous and some of them looked as though they knew it.

What is the attrition rate and by that I mean morale for VB and VA?

It would be interesting to find out.


Dixon treats customers like he treats employees and that is a necessary evil in order to achieve his yearly bonus

The Professor
28th Dec 2005, 17:05
The leaders of countries such as Australia, UK, US, and those of Western Europe are well aware that global economic power is gradually moving toward countries such as China and India and their partners. The west desperately needs to reduce labor costs and improve productivity and flexibility in order to even attempt to effectively compete with these sleeping giants.

This is gradually impacting labor across all industries as companies squeeze pay and conditions, reduce benefits, employ new workers in short term, part time and casual positions. The manufacturing industry especially is constantly moving production offshore. New IR laws, although painful to many, will at least give Australia a slight short term edge. Alterations to the system of gauging unemployment levels in Australia has assisted in masking the true extent to which the labor force has changed.

The rationalization of the airline industry in Australia has been rapid. The switch from Ansett to Virgin Blue as second fiddle to QF has put a serious dent in the future of organized labor within the airline industry. For sure, the old days are gone but following deregulation, the failure of a highly unionized Ansett (providing Dixon with leverage to bypass the unions holding QF to ransom), increasing liberalization of the global airline market and oil at $60/barrel, did anybody expect anything different?

Pinky the pilot
28th Dec 2005, 23:57
Professor; Thank you for your erudite posts. I have no tertiary qualifications at all and not a little of most discussions on economics is beyond my comprehension.
However, one thing does concern me in all of this; would any of the cost cutting/wage and condition slashing be any more palatable if the upper echelons did the same to their own packages?:confused:

You only live twice. Once when
you're born. Once when
you've looked death in the face.

lowerlobe
29th Dec 2005, 02:06
Professor,

I’m not quite sure what your point is but it sounds as though you are telling us that the move to an American IR system is inevitable and correct.

I agree that the labour costs in some parts of the world are lower however as in Japan’s case that will change as they are modernized and advance .I don’t think that China and India will be a challenge economically as they are only making money while their wages are lower and that won’t be forever and if they take all of our jobs then there will be no one here with jobs to pay for those goods and services .These countries also need a lot of goods and services for their own population. They might be a threat militarily and that certainly is a concern however I don’t see a threat to Qantas from either country.

Qantas is making record profits and is arguably the most profitable airline operating at present. The basis for outsourcing work to 3rd world countries is more about ensuring profit through cost cutting rather than the harder option of designing new products and markets or in QF’s case new routes.

When SARS was rampant QF should have taken the opportunity to get new markets so that when people were flying again they would have increased market share. The management at the time though took the easy way out and instead of purchasing new aircraft or placing orders just kept up their slash and burn routine.

I’m sure QF could save money by out sourcing jobs to other countries but at what cost and I’m sure we could out source management and save tens of millions as well but instead of that think of what an airline it could be if the management and employees worked together instead conflicting with each other.

It was not only the work practices and unions that took Ansett down as QF has a large union workforce as well but management practice as well or mis-management by those paid a considerable amount of money to do the opposite. Will the introduction of the new IR laws prevent the examples of corporate disasters and fraud that we have seen with Ansett, HIH etc…..I doubt it...