Joyce under pressure from public, unions
Qantas chief executive Alan Joyce came under intense pressure to resign yesterday, with analysts saying the 5000 job cuts he announced on Thursday are not enough and unions said there was no strategy for the future.
The airline also refused to rule out more cuts at talks with union leaders yesterday, which prompted ACTU secretary Dave Oliver to call for an independent audit to find savings and efficiencies instead of slashing jobs.
"We're not suggesting strike action at this stage, but what we are saying is we will be fighting for every job," Mr Oliver said.
Qantas Domestic chief executive Lyell Strambi conceded the unions were not happy.
"It's fair to say the unions don't support the level of jobs that will have to go in order to protect as many jobs as possible," Mr Strambi said.
Responding to a Sunrise viewer poll that showed 94 per cent of respondents thought he should resign, Mr Joyce defended his leadership, claiming to be "the right man" for overseeing the tough measures needed to return the airline to profit.
However, Centre for Aviation chairman Peter Harbison warned that Qantas would face much more intense competition.
"New airlines from Indonesia will enter the Australian market next year and they have aggressive expansion plans," he said.
Transport Workers Union national secretary Tony Sheldon claimed Qantas "hasn't got the executive capacity to turn around" the airline.
He claimed the Qantas board and executive had an 82 per cent wage increase since 2010.
"They have paid no money back in dividends to shareholders, slashed jobs and more jobs and haven't got a strategy for the future," Mr Sheldon said.
Mr Harbison said the cuts should have been made 10 to 15 years ago and Mr Joyce was under enormous pressure. "This is his greatest test," he said.
He said Qantas had a domestic business class monopoly after Ansett collapsed which masked the need for efficiencies.
