Our Qantas is one of the worlds few profitable airlines. We have seen so many big name carriers bite the dust and go into liquidation and the airline business is notoriously difficult to manage.
Qantas intends to remain at the top and has announced a plan to retire older aircraft, re-equip it's fleet with the biggest and best new planes - and reduce it's workforce by retrenching fifteen hundred jobs.
The unions are dismayed ! They see this as a kick in the teeth for the loyal employees who have made Qantas the worlds safest airline. Their argument is that if the airline is profitable - why shed jobs ?
Qantas management is reacting to change that is fast approaching. Fuel prices are set to soar even higher and seat prices will increase to the point where passenger numbers will be significantly lower,
Bigger, more fuel efficient jets will keep Qantas competitive with other airlines, but there is every chance that we are about to enter a shrinking passenger market - and with fewer passengers and fewer planes less people are needed to keep the airline running.
This is the age old battle between unions and management. The only way any employer can maintain a viable business is by trimming or adding to the workforce as market conditions change.
Employees only have a job when trading conditions enable their employer to make profits and be able to pay them. At the same time, that employer must be able to give a return to shareholders who have bankrolled the business. Success is putting aside sufficient to keep the shareholders happy - and at the same time maintaining employee numbers sufficient to keeping the business viable.
Qantas has done both. It is unfortunate that trading conditions make staff reductions necessary - but comparing fifteen hundred jobs with the size of the overall Qantas workforce means that it is a case of sacrificing the few to safeguard the many.
Commercial reality requires management to have the right to hire and fire as conditions change !
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