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Union plans to haul Joyce and board over coals at AGM

October 9, 2014 Corporate, Headline News 1 Comment Email Email

egtmedia59The Australian Services Union (ASU), the largest union in Qantas and the airline industry in Australia, is preparing to send representatives to the Qantas AGM to ask hard questions.

“We don’t expect to be the only ones, given the record loss Qantas has sustained,” a union spokesperson said yesterday. “We expect many shareholders will question how CEO Alan Joyce and the board can hold their jobs.”

This year the Qantas Annual General Meeting is being held on Friday 24 October 2014 at 11am in Plenary 3 at the Melbourne Convention and Exhibition Centre. http://www.oasisspa.net/

Meeting notices and proxy forms have been sent to shareholders.

“Once again shareholders are being asked to vote on the re-election of directors, the remuneration report, the long term incentive plan for Alan Joyce and constitutional changes,” an ASU statement said.

“Over a number of years the ASU has recommended voting against the remuneration report – nothing we have seen this year changes our mind on this course of action.

“While we agree with the board decision to freeze executive pay and incentives we think the long term incentives plan that is proposed for senior executive and now for the broader management population is too generous and unfairly rewards those at the top who have ripped the heart out of the airline and whose strategies have resulted in this massive loss.”

The long term incentive plan for Alan Joyce is to be voted on as well, the ASU points out.

“This is about awarding Alan Joyce rights to 3,248,000 rights, each of which equals one fully paid Qantas share, if Qantas makes certain performance targets (the share rights are valued at $0.785 each or AUD 2,549,680 in total).

“This generous share grant for reaching performance targets seems over the top. We do not see why Alan Joyce should be rewarded for offshoring jobs and making staff redundant freezing salaries and damaging the Qantas Brand.”

Two of the existing directors are up for re-election: Richard Goodmanson and Barbara Ward. They have been directors since 2008.

“While both have airline experience they, like the rest of the directors, must be held to account for the company’s very poor performance,” the ASU contends.

“Rewarding those at the top while making 5000 staff redundant and offshoring work is not in our view in the best long term interest for Qantas – it is time for a change.

The ASU has recommend its members vote in favour of the constitutional changes proposed to ensure consistency with the Qantas Sale Act and ASX process – but to vote against most of the resolutions.

Large institutional shareholders tend to go along with anything the board suggests at the Qantas AGM but this year’s should be interesting.

Written by : Peter Needham

Currently there is "1 comment" on this Article:

  1. stingforever says:

    …do you really think qantas will change it’s course if joyce goes?…no chance…joyce’s remedy would be implemented no matter what… the union refused to admit it’s not joyce…it’s the competition…it’s the reality that qantas made money in the past because of non-competition…the union is blind to that fact…their hatred for joyce is personal…cutting jobs hurts workers but it’s a bitter pill for everyone to swallow if qantas has to survive…stop this ”rock the boat” acts of the union but instead work together with the management to bring the company back to profitability…this sour graping will only further the suffering of the business more so the workers….

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