Business

Bad blood at Qantas: when the blarney turns to stone

Danny John
October 30, 2011

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Qantas ultimatum: Planes stay on the ground

Qantas planes will not fly unless Fair Work Australia orders the termination of all industrial action, says CEO Alan Joyce.

In his efforts to win friends in the business community and influence the travelling public and the federal government with his hardline attack on the unions, Qantas chief executive Alan Joyce has swiftly become a polarising force within Australian society.

As genial and entertaining as he can be in private, Joyce has been uncompromising in public, particularly with his own workforce and especially with the union leaders who represent his employees.

Qantas chief Alan Joyce has reportedly earned $5 million this year.

Qantas chief Alan Joyce has reportedly earned $5 million this year. Photo: Reuters

There was already a fair amount of suspicion about Joyce's agenda and his motives when he took over from the long-serving Geoff Dixon, having set up the low-cost offshoot, Jetstar, which not only undercut Qantas' rivals but also the long term position of its parent airline.

While the success of Jetstar earnt Joyce plaudits at the highest levels of Qantas and secured him the top job, it has come at the expense of a warm working relationship within the company.

His efforts to first take his employees with him, then cajole them and now force them has only gone to reinforce attitudes that Joyce has little understanding for the Australian sense of fair play and partnership.

Qantas planes sit grounded at Sydney International Airport on October 30, 2011 a day after the country's national carrier grounded its entire fleet due to a bitter industrial row. Photo by AFP Click for more photos

Qantas fleet grounded

Qantas planes sit grounded at Sydney International Airport on October 30, 2011 a day after the country's national carrier grounded its entire fleet due to a bitter industrial row. Photo by AFP

  • Qantas planes sit grounded at Sydney International Airport on October 30, 2011 a day after the country's national carrier grounded its entire fleet due to a bitter industrial row. Photo by AFP
  • At Sydney Airport, passengers Ann and Claudio Vasconcelos were caught up in the fiasco of the Qantas dispute while trying get to Brisbane and manged to get a flight only to Gold Coast with Jetstar.
  • A distraught German tourist who would not give her name is caught up in the Qantas dispute at Sydney Airport.
  • Long queues are seen at the Virgin Australia Domestic Terminal in Sydney on Sunday, after Qantas suspends flights.
  • Qantas Airways personnel talk with passengers at Los Angeles International Airport (LAX).
  • The Qantas check in area is seen empty at Sydney International Airport on Sunday.
  • Beds are prepared for stranded Qantas Airlines passengers inside the ballroom of Regal Airport Hotel in Hong Kong October 30, 2011. Photo by Reuters
  • A woman reads her book at the check-in lines of a Johannesburg-bound Qantas flight at Perth international airport October 30, 2011. Photo by Reuters
  • Qantas workers walk from an Airbus A380 jet at Sydney International Airport.
  • A passenger leaves the Qantas Domestic Terminal in Sydney.
  • A departures screen shows all Qantas flights as cancelled on October 29,  2011 in Melbourne, Australia. Photo by Getty Images
  • Qantas aircraft sit parked at the terminal on October 29, 2011 in Melbourne, Australia. Photo by Getty Images
  • Qantas grounds worldwide fleet. Pictures show Sydney Domestic Airport. Three year old Nevaeh Fetoai and mum Rebecca Morrison from Brisbane are stranded with no where to go. Photo by Steve Lunam
  • Passengers in Los Angeles who have been asked to disembark from their Qantas flight on the 19th of October.
  • A protestor holds a sign stating
  • Alan Joyce,  CEO of Qantas on October 18th at the University of Sydney.
  • Qantas shareholder Jack Tilburn arrives at the Qantas AGM at the Sir John Clancy Auditorium, University of NSW,  Sydney on the 28th October, 2011. Photo by Kate Geraghty
  • Qantas board members Brett Johnson (left), Qantas CEO Alan Joyce(centre) and Paul Rayner (right) at the Qantas AGM at the Sir John Clancy Auditorium, University of NSW, Sydney on the 28th October, 2011. Photo by Kate Geraghty
  • Qantas shareholders during  the Qantas AGM at the Sir John Clancy Auditorium, University of NSW, Sydney on the 28th of October, 2011. Photo by Kate Geraghty
  • ALAEA (Australian Licenced Aircraft Engineers Association) Federal Secretary Steve Purvinas speaks to the media outside the venue before the start of the Qantas annual general meeting at the University of NSW in Sydney on October 28, 2011 as protesters hold up placards. Photo by AFP
  • Protestors outside Qantas AGM at the Sir John Clancy Auditorium, University of NSW, Sydney on the 28th of October, 2011. Photo by Kate Geraghty
  • Tony Sheldon the National Secretary of the Transport Workers Union outside the Qantas AGM at the Sir John Clancy Auditorium, University of NSW, Sydney. 28th October, 2011. Photo by Kate Geraghty

Given his Irish background and Australia's deep cultural links with his home country, that may seem surprising to many but Joyce has never been one for emotion or, for that matter, dwelling on the past.

To that end, his willingness to play hardball with the future of the most iconic of Australian companies has been interpreted as a sign that he doesn't fully appreciate or truly understand what Qantas means to the country: that is an institution, part of Australia's fabric, rather than just another company.

Joyce would hotly dispute that view and has argued that if Qantas is to survive and retain its affectionate place in Australian society the airline has to be dramatically changed from within.

From Joyce's perspective that means saving Qantas from itself but to his opponents both inside and outside of the company the chief executive is being seen as more of a destroyer rather than a saviour.

Such polarised positions do not, therefore, bode well for the future of the Flying Kangaroo but given the increasingly ill-tempered nature of this dispute nobody should be surprised that it has come to this.

Danny John is the Herald's Business Editor

 

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