Qantas to introduce AWA'a
Originally Posted by Wirraway
"The pilots' AWAs have pay rates and conditions in line with industry standards for freighter pilots," he said.
Some of the highest paid pilots in the world work in Freight!! I guess what Geoff means is that it will be comparable to industry standard in China. But of course his salary is comparable to the CEO of Fedex.Some quick calculations reveal that the "industry standard" is at Jetstar/Virgin Levels by about the 4th year in a company!! Good luck to those going in for their AWA negotiations. Might want to arm yourselves with some figures before you negotiate.
Last edited by neville_nobody; 17th Aug 2006 at 08:43.
The truly worrying thing is that Dixon IS nearly earning as much as the CEO of FEDEX - which is especially concerning if you compare & contrast the time periods that they have been at the helm, as well as the growth of the company during that time; not to forget the respective holdings each of them have in their company, and the final straw - Frederick Smith CREATED Fedex!!!
From Forbes.com CEO Compensation:
It's also worth noting that Fred Smith has over US$2Bn worth of Fedex shares - and has been the company founder/CEO for the last 35 years
From Forbes.com CEO Compensation:
Frederick W Smith
Total Compensation
$8.67 mil (#164)
5-Year Compensation Total
$54.22 mil
Frederick W Smith has been CEO of FedEx (FDX) for 35 years. Mr. Smith has been with the company for 35 years and is the company's founder.The 61 year old executive ranks 4 within Transportation
Education
College: Yale BA '66
Graduate School: NA
Total Compensation
$8.67 mil (#164)
5-Year Compensation Total
$54.22 mil
Frederick W Smith has been CEO of FedEx (FDX) for 35 years. Mr. Smith has been with the company for 35 years and is the company's founder.The 61 year old executive ranks 4 within Transportation
Education
College: Yale BA '66
Graduate School: NA
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Love Little Johnny
Introduction of AWAs...wages go down
Interest rates up.....disposable income goes down(Because of ill timed tax cuts..inflationary)
Petrol goes up(Govt Tax)disposable income comes down.
Surprise surprise consumer confidence experiences the biggest downward slide in 17 years.
All this stuff is anti cyclical.
Consumers drive the economy.
Rattle them and consumption goes down and axiomatically inventories increase and then so does unemployment.
Then comes ....you guessed..... it a recession
Thank you Lying little Johnny you are my hero.
If there is a hell for rectums I hope Dixon and Howard keep each other company in it.
They both should employ food tasters/testers.
Interest rates up.....disposable income goes down(Because of ill timed tax cuts..inflationary)
Petrol goes up(Govt Tax)disposable income comes down.
Surprise surprise consumer confidence experiences the biggest downward slide in 17 years.
All this stuff is anti cyclical.
Consumers drive the economy.
Rattle them and consumption goes down and axiomatically inventories increase and then so does unemployment.
Then comes ....you guessed..... it a recession
Thank you Lying little Johnny you are my hero.
If there is a hell for rectums I hope Dixon and Howard keep each other company in it.
They both should employ food tasters/testers.
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Well....
but what I really want to hear is... how much is the 733 freighter AWA worth? And I note there was no (stated) requirement for a type rating. Will existing 727 crew have to pay for their 733 rating if they follow the parcels over to the twin?
What I want to know is, given all this hype of "business segmentation"...
How much is Express Freighters paying Qantas for the lease/purchase of these aircraft? In a simlilar vein, what is Jetstar paying for the 2 year lease of the four A330-200s?
How much is Express Freighters paying Qantas for the lease/purchase of these aircraft? In a simlilar vein, what is Jetstar paying for the 2 year lease of the four A330-200s?
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How's this for a bit of bar room banter.
I think it actually may have some legs, god help us.
In just about every forum you care to name Old Geoff ,2 secretaries pregnant, Dixon has stated that the company must achieve a 12% return on capital in order to survive.
Well how's this for a bummer concept.
If you thought the JetStar Agreement was the low tide mark for staff, think again.
On average JetStar is paying 20% less than Qantas.
Qantas' wage bill is appx $3.4 Billion.
So 20% of that is some $680 Million dollars straight onto the bottom line if Dixon and his merry band of Judas' can get us onto JetStar type conditions.
Still does not add up to a 12% return, so where does the remaining savings come from?
Well the cupboards are quite bare now ,so you guessed it,JetStar terms and conditions will not stay as the "low tide " mark.
I guess worse may be expected.
Where's the number for that trucking firm Mav?
Here's some more food for thought
Qantas and Jetstar don't mix
Elizabeth Knight
August 9, 2006
IF GEOFF DIXON at Qantas really wants to gouge the costs out of his business and maintain growth, he is going to have to devise a plan to split the company in two: Qantas and Jetstar.
In order to achieve his expansion ambitions, both airline brands will need to be housed separately - in two stockmarket vehicles.
There will need to be some affiliation through some common ownership - maybe via a parent company which retains a controlling stake in Jetstar - so synergies can be maintained and Dixon can retain his job as puppeteer.
While the Qantas board might view this as far too radical a move, the fact is higher fuel prices are here to stay and the company needs restructuring.
Cost-cutting alone does not ensure growth and spinning off Jetstar would provide the company with some handy extra capital for future expansion, most probably into freight.
Indeed, Qantas's chief financial officer, Peter Gregg, and its chairwoman, Margaret Jackson, have both been on the hustings in the past couple of weeks highlighting the financial challenges Qantas faces in this new environment of high fuel costs.
Gregg went so far as to say that the company has identified $1.2 billion of savings on top of what had already been planned. He outlined a series of strategies such as Jetstar's international expansion, changes in engineering maintenance, restructuring of catering, international fare simplification and online bookings.
It's a good start but it's not enough to offset the fuel price rise that Jackson predicted would be $3.9 billion more in 2006-07 than in 2002-03.
Dixon has done a mammoth job cutting costs during this period. Whether you view this as a good or a bad thing depends on whether you are a shareholder or an employee.
Much of the work has been done through industrial relations. To achieve such a large change in wage rates and work practices, the business has had to develop a new low-cost airline with a low-cost base, Jetstar.
This may have cannibalised its mainline Qantas domestic airline but that was the plan. Transferring the low-fare-paying travellers to an airline with a cheaper operating structure seemed like a radical way to overcome a wage and work practices problem. It was.
Qantas is now extending this model to its international business. Cheap Jetstar flights to offshore destinations make just as much sense, as long as they are executed effectively.
But all these strategies have been factored into the original cost-savings estimates.
Further migration to Jetstar has to be achieved and structural separation is one way to get the outcome.
Meanwhile, Qantas has already made it clear that expanding its freight business will be one leg of its growth strategy. And, as we are on the verge of a major upheaval in this market as a result of the successful takeover by Toll Holdings of Patrick Corp, it is only a matter of time before Qantas makes it clear how it is going to feature in these strategic developments.
Next week Qantas will announce its full-year earnings and, hopefully, provide some clarity on how it's going to tackle the huge challenge of maintaining or improving its earnings.
Right now the company does not meet its cost of capital and, although successful when compared with other airlines, it is not the sort of investment that can be favourably compared with many Australian industrial companies. But these non-airline companies are the ones with which Qantas is competing for capital.
Qantas has staged a highly successful political campaign to protect the lucrative international routes it dominates but it can't rely on this kind of nationalism forever.
The cost of fuel is disabling the business and it needs CPR (cardiopulmonary resuscitation). Shifting maintenance and improving catering won't do it, nor will moving more heavily into the freight business. Qantas has to take big steps to address a structural change in its cost base.
The management and board have shown themselves willing to take large steps in the past to address the issue of legacy costs and perhaps next week we may see if they still have the nerve.
Further migration to Jetstar has to be achieved and structural separation is one way to get the outcome.
Meanwhile, Qantas has already made it clear that expanding its freight business will be one leg of its growth strategy. And, as we are on the verge of a major upheaval in this market as a result of the successful takeover by Toll Holdings of Patrick Corp, it is only a matter of time before Qantas makes it clear how it is going to feature in these strategic developments.
I think it actually may have some legs, god help us.
In just about every forum you care to name Old Geoff ,2 secretaries pregnant, Dixon has stated that the company must achieve a 12% return on capital in order to survive.
Well how's this for a bummer concept.
If you thought the JetStar Agreement was the low tide mark for staff, think again.
On average JetStar is paying 20% less than Qantas.
Qantas' wage bill is appx $3.4 Billion.
So 20% of that is some $680 Million dollars straight onto the bottom line if Dixon and his merry band of Judas' can get us onto JetStar type conditions.
Still does not add up to a 12% return, so where does the remaining savings come from?
Well the cupboards are quite bare now ,so you guessed it,JetStar terms and conditions will not stay as the "low tide " mark.
I guess worse may be expected.
Where's the number for that trucking firm Mav?
Here's some more food for thought
Qantas and Jetstar don't mix
Elizabeth Knight
August 9, 2006
IF GEOFF DIXON at Qantas really wants to gouge the costs out of his business and maintain growth, he is going to have to devise a plan to split the company in two: Qantas and Jetstar.
In order to achieve his expansion ambitions, both airline brands will need to be housed separately - in two stockmarket vehicles.
There will need to be some affiliation through some common ownership - maybe via a parent company which retains a controlling stake in Jetstar - so synergies can be maintained and Dixon can retain his job as puppeteer.
While the Qantas board might view this as far too radical a move, the fact is higher fuel prices are here to stay and the company needs restructuring.
Cost-cutting alone does not ensure growth and spinning off Jetstar would provide the company with some handy extra capital for future expansion, most probably into freight.
Indeed, Qantas's chief financial officer, Peter Gregg, and its chairwoman, Margaret Jackson, have both been on the hustings in the past couple of weeks highlighting the financial challenges Qantas faces in this new environment of high fuel costs.
Gregg went so far as to say that the company has identified $1.2 billion of savings on top of what had already been planned. He outlined a series of strategies such as Jetstar's international expansion, changes in engineering maintenance, restructuring of catering, international fare simplification and online bookings.
It's a good start but it's not enough to offset the fuel price rise that Jackson predicted would be $3.9 billion more in 2006-07 than in 2002-03.
Dixon has done a mammoth job cutting costs during this period. Whether you view this as a good or a bad thing depends on whether you are a shareholder or an employee.
Much of the work has been done through industrial relations. To achieve such a large change in wage rates and work practices, the business has had to develop a new low-cost airline with a low-cost base, Jetstar.
This may have cannibalised its mainline Qantas domestic airline but that was the plan. Transferring the low-fare-paying travellers to an airline with a cheaper operating structure seemed like a radical way to overcome a wage and work practices problem. It was.
Qantas is now extending this model to its international business. Cheap Jetstar flights to offshore destinations make just as much sense, as long as they are executed effectively.
But all these strategies have been factored into the original cost-savings estimates.
Further migration to Jetstar has to be achieved and structural separation is one way to get the outcome.
Meanwhile, Qantas has already made it clear that expanding its freight business will be one leg of its growth strategy. And, as we are on the verge of a major upheaval in this market as a result of the successful takeover by Toll Holdings of Patrick Corp, it is only a matter of time before Qantas makes it clear how it is going to feature in these strategic developments.
Next week Qantas will announce its full-year earnings and, hopefully, provide some clarity on how it's going to tackle the huge challenge of maintaining or improving its earnings.
Right now the company does not meet its cost of capital and, although successful when compared with other airlines, it is not the sort of investment that can be favourably compared with many Australian industrial companies. But these non-airline companies are the ones with which Qantas is competing for capital.
Qantas has staged a highly successful political campaign to protect the lucrative international routes it dominates but it can't rely on this kind of nationalism forever.
The cost of fuel is disabling the business and it needs CPR (cardiopulmonary resuscitation). Shifting maintenance and improving catering won't do it, nor will moving more heavily into the freight business. Qantas has to take big steps to address a structural change in its cost base.
The management and board have shown themselves willing to take large steps in the past to address the issue of legacy costs and perhaps next week we may see if they still have the nerve.
Further migration to Jetstar has to be achieved and structural separation is one way to get the outcome.
Meanwhile, Qantas has already made it clear that expanding its freight business will be one leg of its growth strategy. And, as we are on the verge of a major upheaval in this market as a result of the successful takeover by Toll Holdings of Patrick Corp, it is only a matter of time before Qantas makes it clear how it is going to feature in these strategic developments.
Last edited by max autobrakes; 22nd Aug 2006 at 17:31.
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Qantas profit dives – but Airbus helps the bottom line
Michael Pascoe writes:
Never mind expanding the freight business, Qantas was saved from an even sharper profit plunge by its ability to make money out of Airbus running late on delivering the A380.
Ravaged by an $1.1 billion jump in its fuel bill (partly offset by $282 million in hedging profit), the Roo's net profit was down 30% to $480 million. But that was after picking up $104 million in liquidated damages from Airbus. If the French knew how to build a plane on time, the Qantas net profit would have been down about 40%. (If only they had ordered more than 12 A380s... wonder if they could get the same sort of deal if they put their name down for some of those joint strike fighters…)
The commentary from CEO Dixon was more of the same – more cost cutting, more fuel bill increases, more jobs to go, more rationalisation, AWAs where they'll help etc. The management and support staff class will be feeling particularly nervous with 1,000 of them scheduled to disappear. Qantas's total workforce is about 38,000.
As always when such big management cleanouts are announced, one is left wondering if those 1,000 had been doing anything of value. If not, Dixon and top management should surrender all their previous bonuses. If they had been adding value though, one is left wondering how their jobs will be without them, or what will go missing from Qantas when they depart.
There's still no hint of dealing with Qantas's biggest percentage cost disadvantage compared with its main competitors – the pay packets of the CEO, CFO and a few other top executives
Never mind expanding the freight business, Qantas was saved from an even sharper profit plunge by its ability to make money out of Airbus running late on delivering the A380.
Ravaged by an $1.1 billion jump in its fuel bill (partly offset by $282 million in hedging profit), the Roo's net profit was down 30% to $480 million. But that was after picking up $104 million in liquidated damages from Airbus. If the French knew how to build a plane on time, the Qantas net profit would have been down about 40%. (If only they had ordered more than 12 A380s... wonder if they could get the same sort of deal if they put their name down for some of those joint strike fighters…)
The commentary from CEO Dixon was more of the same – more cost cutting, more fuel bill increases, more jobs to go, more rationalisation, AWAs where they'll help etc. The management and support staff class will be feeling particularly nervous with 1,000 of them scheduled to disappear. Qantas's total workforce is about 38,000.
As always when such big management cleanouts are announced, one is left wondering if those 1,000 had been doing anything of value. If not, Dixon and top management should surrender all their previous bonuses. If they had been adding value though, one is left wondering how their jobs will be without them, or what will go missing from Qantas when they depart.
There's still no hint of dealing with Qantas's biggest percentage cost disadvantage compared with its main competitors – the pay packets of the CEO, CFO and a few other top executives
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Can someone explain what is an AWA?Is it along the lines of a easier way to have a watered down contracts with no real protection etc?Sorry I have been away for a while now.
Cheers,
Cheers,
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Directanywhere, I'm not an industrial expert, so my knowledge is limited to what I have read.
AWA - you can and should employ a bargaining agent to work with you once offered employment under an AWA to "negotiate" your terms and conditions of employment.
Industrial coverage - I was of the belief that an industrial organization can (and should??) seek coverage of workers employed under an AWA should that be the wish of the employees?? Hence the AWA is no more??
AWA - you can and should employ a bargaining agent to work with you once offered employment under an AWA to "negotiate" your terms and conditions of employment.
Industrial coverage - I was of the belief that an industrial organization can (and should??) seek coverage of workers employed under an AWA should that be the wish of the employees?? Hence the AWA is no more??
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DA and Rescue
Thank you for spelling out and providing links to this EXTREME legislation. One question i have is that, does the 38 hours of work mean that it is per week and not spread over a period of say a fortnight or a month? So a pilots duty time can be modified to suit the legislation and likewise an engineers work time can be modified to suit turnarounds and quiet times. Just a thought that's all.
Thank you for spelling out and providing links to this EXTREME legislation. One question i have is that, does the 38 hours of work mean that it is per week and not spread over a period of say a fortnight or a month? So a pilots duty time can be modified to suit the legislation and likewise an engineers work time can be modified to suit turnarounds and quiet times. Just a thought that's all.
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It's interesting discussing this issue on overnights as to how many one eyed Liberal voters that have never voted Labor before will be next time around. If this is a reflection on how the conservative voters in society are thinking, I think the Liberal's may well have a major problem.
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Direct anywhere & Argus.moon - with you all the way. Very interesting bit about the US industrial specialists - Mr Boeing I do so very much you are right
I am deeply concerned for my childrens future. And yet what does the Labour party do to capitalise on this - sweet FA really. The fact that not a word about the new IR laws not going far enough from the Business council of Aust should also start alarm bells ringing, does the average Joe mug aussie punter have any real idea - alas no I would suggest
. One hopes a special spot in hell is reserved for lil johnny and his cronies in big business, and all the other liberal party mates, like reith who started off with EBAs years ago, moore-wilton, smarmy abbott, et all. one can not bring ones self to post their names with capitals, tis only fitting given the contempt with which they treat us.
I am deeply concerned for my childrens future. And yet what does the Labour party do to capitalise on this - sweet FA really. The fact that not a word about the new IR laws not going far enough from the Business council of Aust should also start alarm bells ringing, does the average Joe mug aussie punter have any real idea - alas no I would suggest
. One hopes a special spot in hell is reserved for lil johnny and his cronies in big business, and all the other liberal party mates, like reith who started off with EBAs years ago, moore-wilton, smarmy abbott, et all. one can not bring ones self to post their names with capitals, tis only fitting given the contempt with which they treat us.
Evertonian
Okay. Hand up time. I'm one of those "never voted Labour" types too. Whilst there was certainly room for reform, the reform should only have levelled out the playing field. This legislation has skewed it in the opposite direction.
During a time when we see huge financial incentives for CEO's who can squeeze the $$$ out of the workforce, there is a need for balance, otherwise we will see the rise of an "Us & Them" mentality. It already exists in the USA and, after seeing how people at the lower end of the food chain struggle there, we do not want that here!
If Beasley can get his act together & string some coherent policies up, he can have my vote. Otherwise, I'll be looking for an independant. (Greens, Democrats? I'd sooner vote for Krusty the clown!)
During a time when we see huge financial incentives for CEO's who can squeeze the $$$ out of the workforce, there is a need for balance, otherwise we will see the rise of an "Us & Them" mentality. It already exists in the USA and, after seeing how people at the lower end of the food chain struggle there, we do not want that here!
If Beasley can get his act together & string some coherent policies up, he can have my vote. Otherwise, I'll be looking for an independant. (Greens, Democrats? I'd sooner vote for Krusty the clown!)
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I wonder if winston howard would have the ticker to take a good long hard look at what this legislation will do for our prosperity.
The ever growing gulf between the haves and have nots.
The imposition of a lack of choice in how you can negotiate with your employer. I really do feel for those too timid to stick up for themselves and are forbidden to have representation.
To quote another doyen of conservatism. Mao se Thatcher vs Neil Kinnock.
" Of course the honourable gentleman does not like choice he is a socialist, a krypto communist"
The ever growing gulf between the haves and have nots.
The imposition of a lack of choice in how you can negotiate with your employer. I really do feel for those too timid to stick up for themselves and are forbidden to have representation.
To quote another doyen of conservatism. Mao se Thatcher vs Neil Kinnock.
" Of course the honourable gentleman does not like choice he is a socialist, a krypto communist"
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And something else that may slip past, Beasley could well say he'll tear up the legislation, not if the senate reamins the same!! - yet does this message get through. If you have not already guessed johnny will not get mine (vote) but these Labour galahs, how many would big Kim like to lose, get some policies together, and give that Rudd fellow a go, he seems very well articulated and genuine
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If this is a reflection on how the conservative voters in society are thinking, I think the Liberal's may well have a major problem.
Last edited by ausflying; 24th Aug 2018 at 03:11. Reason: old
