Pilots, Joyce Clash Over CEO Remarks on Qantas Grounding
Despite the labor dispute between Qantas and the unions being under Fair Work Australia for arbitration, a word war erupted between Qantas Chief Executive Alan Joyce and the pilots union.
The new dispute was over a remark by Mr Joyce that his unilateral decision to ground the fleet in October 2011 for 48 hours was positive for the brand.
"In the few months up to the grounding we were being massively disrupted by the unions. We were finding it hard to have a reliable schedule and the business community had left Qantas," The Australian quoted Mr Joyce.
"But after we brought the dispute to a head... we saw an immediate and rapid response of forward booking because certainty was brought back. The days after the grounding I was inundated with emails, 90 per cent of them were positive," he added.
However, the pilots union said Mr Joyce's comments were bizarre and worrying.
"Any polling and basic common sense will tell you that when a Qantas CEO spontaneously grounds the entire fleet without good reason... it is going to hurt Qantas's reputation," the Australian and International Pilots Association (AIPA) President Captain Barry Jackson said.
The Australian newspaper appeared to have backed Mr Joyce's decision since it named the Qantas chief executive as the most influential business person in Australia ahead of BHP Billiton Chief Executive Marius Kloppers and ANZ Bank Chief Mike Smith.
"Mr Joyce seems to genuinely believe that the back-slapping he's received from some other CEOs is somehow representative of the flying public. He is completely wrong," Mr Jackson countered.
Prior to the grounding, the pilots, ground crew and aircraft engineers of Qantas frequently held work stoppages to protest the air carrier's plan to launch hubs in Asia and outsource jobs to improve profit.
To defend the plans to open hubs in Asia and outsource jobs, Mr Joyce accused the unions of bullying. He warned that protectionist move by labour groups could result in more company failures and job losses.
"Some of the union movement in this country do not realise how open the world has become, how global we've become, how competitive it's become," Mr Joyce told The Australian.
He pointed out that in a fiercely competitive industry such as aviation, companies that are not fit, capable and competitive will not survive.
"There was a feeling that somebody needed to stand up to the bullying and what was taking place with the union movement," he added.
However, Workplace Relations Minister Bill Shorten said it is wrong for Qantas to respond to the challenges it faces by axing jobs in Australia. He said the air carrier could not afford to lose skills and urged the air carrier to take a long-term view of the situation.
"If you cut too much you then lose skills that are never coming back and there will be a time when you need the skilled engineers," Mr Shorten told Fairfax Radio Station.
AIPA insisted that Qantas must focus on repairing the damage caused by Mr Joyce's grounding of the fleet, which cost the flag carrier $208 million.
"In order to do so we need a new leader who is in touch with passengers and not just business leaders," Mr Jackson said.
Qantas is schedule to release its half yearly profit results on Thursday.