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In the wake of Qantas’ record full-year profit, announced last week, three big unions representing the airline’s workers have expressed outrage at conditions attached to bonuses. The Australian Council of Trade Unions (ACTU) called an urgent meeting over the issue yesterday and is working to finalise a plan of action.

Highlights of the Qantas result are:

  • Underlying Profit Before Tax: AUD 1.6 billion (up 14%)
  • Statutory Profit Before Tax: AUD 1.4 billion (up 18%)
  • Statutory Earnings Per Share: 56c (up 21%)
  • Return On Invested Capital: 22%
  • Net free cash flow: AUD 1,442 million (up 10%)
  • Shareholder return of up to AUD 500 million: 10 cents per share ordinary franked dividend, plus an on-market buyback of up to AUD 332 million
  • Bonus for 27,000 non-executive employees, worth a total of AUD 67 million
  • Extension of global lounge improvement program –– six additional ports to be upgraded
  • Commitment to create a second pilot academy facility in regional Australia.

Qantas chief executive Alan Joyce said the record profit reflected a strong market as well as the benefits of ongoing work to improve the business and build long-term shareholder value.

“These numbers show a company that’s delivering across the board,” he said.

Qantas International increased its earnings by 7% to AUD 399 million and maintained its margin in the face of strong competition and higher fuel prices.

Jetstar International posted a strong profit after managing an AUD 11 million impact from Bali ash clouds and start-up of new routes like Melbourne-Ho Chi Minh.

Qantas Loyalty achieved a record result of AUD 372 million, up 1% from the prior year.

Unions, however, were horrified to read the small print attached to bonuses for their members.

The Australian Services Union (ASU) told its members: “Qantas management are now holding the bonuses … to ransom by saying they cannot be accessed by ASU EBA [Enterprise Bargaining Agreement] covered staff until after a new EBA is agreed post 30 June 2020 (i.e. when the existing agreement expires).

“But wait there is more – Qantas management are also saying that you only get the bonus if you do not take any industrial action to get that new EBA in 2020!

“So if you thought you would be getting a AUD 2000 bonus for full timers and a AUD 1500 for part timers – it ain’t happening now – if you want it you are bound to stay at Qantas for 2-3 more years.

“If you think that is unfair – spare a thought for the QCatering staff whose business has been sold off to dnata – they are not getting the bonus either, they will never see it as the sale date and transfer is later this year. Heartless, unfair and unprecedented are all words to describe this decision… oh and saving money….

“Interestingly the high paid executives not on EBAs have no conditions on their bonuses – they get them in September.

“This stupid decision effects all union EBA covered staff across Qantas – so everyone is unhappy except the executives of course who are smiling all the way to the bank.”

Transport Workers Union (TWU) National Secretary Michael Kaine said: “This is a joke. Qantas is trying to appear to be sharing its bumper profits with its workforce but that is far from the facts. In Qantas Catering, 60% of staff are employed through labour hire firms and they so won’t get the bonus at all, despite being with the company for up to 12 years.

“Qantas short-haul cabin crew 2020 won’t get paid the bonus until 2020 and Qantas long-hour cabin crew until 2021, when their agreements expire. In Qantas Ground Services almost all employees are on forced part-time hours, and struggle to support their families. This is an industry ripping off workers while pocketing the profits.”

The Australian Licenced Aircraft Engineers Association (ALAEA), which represents hundreds of Qantas engineers, issued a statement signed by Federal Secretary Steve Purvinas, headed: QANTAS SINKS TO NEW LOW

“We were initially surprised that the Qantas Executives, who will receive their multi-million dollar bonuses immediately, could share so little after the record profit,” ALAEA said.

“After some reflection we realised that this contemptuous offering, which is little more than a bribe to accept further substandard Enterprise Agreements, was a declaration of war on 30,000 Qantas Group employees.

“That sentiment has been shared across many social media platforms in the previous 24 hours and it is clear that this unethical move by Alan Joyce will only strengthen the resolve between all unions and non-management Qantas Group workers.”

ALAEA concluded: “The Qantas founders would be ashamed of their airline today.”

Written by Peter Needham