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Pandemic-hit Qantas weighs new pay structure to keep key executives

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Pandemic-hit Qantas weighs new pay structure to keep key executives

Old 17th Sep 2021, 05:44
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Pandemic-hit Qantas weighs new pay structure to keep key executives

Pandemic-hit Qantas weighs new pay structure to keep key executives

SYDNEY, Sept 17 (Reuters) - Qantas Airways Ltd (QAN.AX) said on Friday it was considering new ways to structure pay to ensure it could retain key executives as it enters the third financial year affected by the pandemic-driven slowdown in travel.

Qantas Chairman Richard Goyder said executives had faced a high workload with no annual bonuses for the last two years, and a continued wage freeze at a time when attrition was rising across the airline.

"Our executive cohorts are talented and in increasing demand across a range of industries, many of which, unlike aviation and tourism, are experiencing high rates of growth and activity, with financial rewards to match," he said in the airline's annual report.

In the case of CEO Alan Joyce and executive management, any incentive plan would take the place of the traditional annual bonus plan, Goyder said, adding that a decision was expected in the second half of the financial year.

Joyce's total annual pay rose to A$1.97 million ($1.44 million) in the 12 months ended June 30, up 13% from a year earlier, when he had taken a period of zero base pay, but his pay remained 80% below pre-COVID levels.

Joyce has said he expected to stay in his role until at least July 2023 to complete a three-year recovery plan designed to cut ongoing annual costs by A$1 billion.

In a separate note to staff seen by Reuters, Goyder said the company would look to reward all employees if the recovery plan is completed successfully by that date.

"Nothing is finalised but we look forward to sharing more detail in the first quarter of next year," he said.
https://www.reuters.com/business/aer...es-2021-09-17/
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Old 17th Sep 2021, 07:33
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I can barely contain my excitement. Stood down for 12-24 months, 2 year wage freeze and then 2% pay rises and we’ll probably get a staff travel bonus in 2 years time.
Meanwhile the execs are positioning themselves for a multi million dollar payday.
Sounds fair to me.
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Old 17th Sep 2021, 07:38
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Fair or not, its nothing more than market forces. Other industries have been going gangbusters and unlike pilots, executives aren't idiots who implement dumber than mud 'seniority' systems, giving them leverage in the labour market.

They'll walk out the door if they can get more money elsewhere, and they probably can. So its either this, or bring in worse managers and the outcomes that flow on from that.



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Old 17th Sep 2021, 08:13
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Please pass the tissues, thanks.

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Old 17th Sep 2021, 09:32
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Originally Posted by das Uber Soldat View Post
Fair or not, its nothing more than market forces. Other industries have been going gangbusters and unlike pilots, executives aren't idiots who implement dumber than mud 'seniority' systems, giving them leverage in the labour market.

They'll walk out the door if they can get more money elsewhere, and they probably can. So its either this, or bring in worse managers and the outcomes that flow on from that.
Funniest thing I have read in ages.
Can’t wait to see the talent leaving. Honestly if you believe that you are delusional.
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Old 17th Sep 2021, 09:40
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Originally Posted by das Uber Soldat View Post

They'll walk out the door if they can get more money elsewhere, and they probably can. So its either this, or bring in worse managers and the outcomes that flow on from that.
So by inference the present management is as good as one can get according to dUS?

Amazing - a satisfied employee.
Should be stuffed and mounted outside QF HQ just to prove the unicorn does exist!
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Old 17th Sep 2021, 10:56
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Very Australian at "Exec" level - or whatever it is called here
Aussie execs highest paid in the world & running relatively small entities
They are just copy/paste a line that banks were using to justify a few years back "lock in the exec talent"
- our people are such legends they will go elsewhere as such mega legend talent is always be sought after
Anyone believe a word of it ?
Got very similar in Uni sector with VCs at our top Unis earning twice/three their Canadian counterparts , whose Unis ranked UBD, UT ranked way higher (in 20s/30s)
Think RMIT VC was pulling 1.5 mill - ranking of 200 or more like 250 at best worldwide, UBC(ranked 30) guy was on 0.6
$4 million bonus , that is about a bonus of $1mill for every 1 Billion lost , the QF staff should ask to see his contract - answer - "get back in your box you pleb"

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Old 17th Sep 2021, 11:16
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Qantas has in the past been able to get away with paying below market wages for corporate staff -the opposite of a tobacco company. Staff travel was a massive perk for these people, other perks like a non-CBD head office, somewhat relaxed company culture and the undeniable prestige. Time to cough up and pay people what they’re worth.

Plenty made redundant in the last 2 years are making a lot more money now which no doubt filters back.
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Old 17th Sep 2021, 11:21
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Originally Posted by galdian View Post
So by inference the present management is as good as one can get according to dUS?

Amazing - a satisfied employee.
Should be stuffed and mounted outside QF HQ just to prove the unicorn does exist!
He isn’t wrong. Qantas management have done an incredible job keeping the company going during the pandemic. Shareholders seem, for the most part, very happy with how things are tracking. Management have been able to restructure their business, increase the rate of outsourcing of the workforce and have secured billions of dollars of federal and state government funding.

They’ve let their aircrew workforce suffer to achieve this, but we are our own worst enemies for letting them. How many ‘flexibilities’ are we providing to the contract at the moment? What will we do when they call us back and offer pay freezes and 2% p.a. increases thereafter? We’ll all rush back no questions asked.

We pilots are exceedingly compliant and AIPA is more of a survey company than a Trade Union these days. Is it any wonder that the company dictate terms when we have let them do it repeatedly over the last two decades?
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Old 17th Sep 2021, 12:13
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What a stitch up. I'm sure if they advertised for senior management roles worldwide they would be inundated with suitable applicants all whom would happily work for less. If there is ever a real pilot shortage in Australia QF will be off to Canberra to make sure they can get work visas for anyone they want to hire from overseas.

However management and the board will never actually allow market pressure be applied to their jobs whilst simultaneously declaring "market forces" on everyone else. At the upper levels everyone has everyone elses back when it comes to renumeration.
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Old 17th Sep 2021, 12:19
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Don’t forget, they don’t care about us, just themselves
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Old 17th Sep 2021, 13:20
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I bet waiting line with unemployed airline executives is slightly shorter then the queue with unemployed pilots.
That's pretty much it.

&
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Old 17th Sep 2021, 21:55
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What a laughable comment from the Board. The narcissists are definitely in charge of the asylum. There is always somebody ‘better’ out there. Alan and his executive team are part of an interchangeable C-suite collective, and there is plenty of people within that group to pick and choose from. People like Joyce and Gissing have been there way too long and a fresh perspective is long overdue. Joyce continuously recycles Gerry Turner throughout the Qantas group. Again, the Qantas group would function nicely without Turner. There are better choices out there. It’s a club for mates, not a club for true executive talent.

As for the belief that Joyce is some kind of CEO messiah, his latest move to stem the flow of blood is to sell half a billion dollars worth of SYD property that QF have owned since the 60’s. Wow, what a strategist. That decision makes him the best of the best? Hardly. Any half-brained C-suite numpty could have come up with that manoeuvre. It’s going to be an interesting looking Qantas by the time the leprechaun bails in 18 months.
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Old 17th Sep 2021, 22:17
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Originally Posted by What The View Post
Funniest thing I have read in ages.
Can’t wait to see the talent leaving. Honestly if you believe that you are delusional.
True. Lets bring Borghetti on then, they're all the same right?

Originally Posted by galdian
So by inference the present management is as good as one can get according to dUS?

That's only true if there was absolutely no correlation between pay and competency on a macro level. That'd be a difficult case to prove, though I'd not be suprised if the average pilot with their room temperature IQ gave it the good ole college try.

If experienced managers leave the company because they can get better money elsewhere, they're either replaced by people within the company, who by your logic wouldn't be any better, or are replaced by external hires. Those external hires being the same ones who failed to be competitive for the higher paid positions elsewhere, taken by the leaving managers.

Do you assert that situation would serve to improve the quality of management at Qantas?

Originally Posted by galdian
Amazing - a satisfied employee.
Not at all. Just not just a blithering idiot clouded by emotion, wielding financial illiteracy like babies favorite toy. I've been as bent over as any in the Qantas group by self serving management decisions, but I can at least recognize that I don't have to like them to understand the implications of market forces here. If you think 'management can't get any worse' then perhaps you need to have a word with those working for Virgin or Tiger. Or Rex of late.


If you really think you know better and the management of the company is a disaster, then short the stock and post the confirmation for all to see. Think of the killing you'd make! Maybe we could stuff and mount you outside the ASX headquarters as the first pilot to make a successful market call?
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Old 17th Sep 2021, 23:38
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Originally Posted by patty50 View Post
Qantas has in the past been able to get away with paying below market wages for corporate staff -the opposite of a tobacco company. Staff travel was a massive perk for these people, other perks like a non-CBD head office, somewhat relaxed company culture and the undeniable prestige. Time to cough up and pay people what they’re worth.

Plenty made redundant in the last 2 years are making a lot more money now which no doubt filters back.
Agree. If you take the emotion out of blindly hating management, this is correct. Many of these people have generic transferrable skills (eg "Change Management", "Wellbeing Advisor" "Transformational Lead") and no often no real passion for aviation. I'm sure many were happy to take a lower salary packet in exchange for that higher onload category. Not so helpful in the current times..
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Old 18th Sep 2021, 00:30
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Well said Das.

Pilots are the best executives in the world, just ask them. But don’t ask them to prove it, then they’ll come up with every excuse under the sun.

If you all really think they’re so bad at their jobs and you can do better, then off you go, try it.
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Old 18th Sep 2021, 01:57
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Pilots cannot run airlines. Don’t even get me started on that one.
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Old 18th Sep 2021, 02:02
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Pretty hard to square these two statements from management 4 months apart:
This financial year, we’re facing a statutory loss of more than $2 billion, which follows on from the $2.7 billion loss in 2020.Given the amount of repair required, we have determined that a two-year wage freeze will apply to any new agreements offered in the Group. After that, the Group wages position will be two per cent per annum.
Then…
The Board is considering how best to structure the Remuneration Framework for 2021/22 to retain the critical talent required to set the Qantas Group on a course for prosperity beyond the COVID-19 crisis. As such, the Board is considering remuneration initiatives that are designed to reward and incentivise all employees in setting up Qantas for post-pandemic success.
So the cupboard is bare and no pay rise for anyone, then suddenly it’s super important we dream up a special new structure to reward and incentivise the management team.

Granted, they did say “all employees” but when you are stood down unpaid now and promised a wage freeze from 2023-2026, I can’t see this making up the difference.

It is a pretty loud statement that, a) We are NOT “all in this together”, and b) Management believe that they alone are responsible for the success/survival of the company and no thanks to the tens of thousand of employees beneath them.
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Old 18th Sep 2021, 02:15
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If you take the emotion out of blindly hating management, this is correct. Many of these people have generic transferrable skills (eg "Change Management", "Wellbeing Advisor" "Transformational Lead") and no often no real passion for aviation. I'm sure many were happy to take a lower salary packet in exchange for that higher onload category. Not so helpful in the current times..
Well those people can go and leave and I am sure they can recruit many suitable candidates. I find it amusing that the narrative is that there is a oversupply of highly specialised highly trained pilots ( whose qualifications in the current market would cost you $120K+ to actually get then 5 years experience at least) but always an undersupply of people where all you need is a business related degree and some relevant experience and you're qualified to apply. Then if they run out of local candidates you then have the entire planet to recruit from.

I'm sorry but you are not "special" just because you work in management. Generally most people can easily be replaced there are actually very few positions where this is not the case and most of those are usually highly specialised, highly skilled/qualified. And no pilots do not fall into that category.
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Old 18th Sep 2021, 02:35
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Originally Posted by das Uber Soldat View Post
Fair or not, its nothing more than market forces. Other industries have been going gangbusters and unlike pilots, executives aren't idiots who implement dumber than mud 'seniority' systems, giving them leverage in the labour market.

They'll walk out the door if they can get more money elsewhere, and they probably can. So its either this, or bring in worse managers and the outcomes that flow on from that.
At least we now know AJ's handle on here..... Great work boss!
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