Workers have blasted the “sickening” decision to hand Qantas executives million-dollar bonuses during flight cancellations and lost baggage.
Unions have slammed Qantas for handing out millions of dollars in bonuses to executives while the airline is plagued by flight cancellations, delays and baggage losses.
In a statement to the ASX in June, the company announced it would reward four executives with shares worth more than $4m despite the ongoing commuter chaos.
The announcement comes as Qantas attracts heavy criticism for its flagging performance, which resulted in aviation analytics site OAG ranking Qantas 92nd out of 130 airlines for on-time performance.
OAG data reveals the national airline had more than one in three flights delayed in June, and more than 7 per cent of the flights were cancelled in May.
Australian Licensed Aircraft Engineers’ Association federal secretary Steve Purvinas said the executives didn’t deserve bonuses after Qantas’s poor performance.
“The airline is being destroyed by these people,” he said.
“They should not be receiving a bonus at all. They should be sacked.”
Mr Purvinas laid the blame for the disruption on the shoulders of the executives, whom he blamed for the ongoing passenger and staffing issues.
“I have spoken to Qantas staff today and the fury on the shop floor is building by the hour,” he said.
“There will be no Qantas if their mismanagement continues.”
If they meet performance targets, Qantas chief financial officer Vanessa Hudson would be eligible for $1.15m in shares, Jetstar chief executive Gareth Evans would receive $1.22m, Qantas domestic and international chief executive Andrew David would get $1.15m, and Qantas Loyalty chief executive Olivia Wirth would be given stocks worth $985,000.
The bonuses would be paid in August 2023, although Mr Evans has since resigned.
The company will also reward around 20,000 eligible non-executive employees with shares worth an estimated $5000.
Executive bonuses were paused over the past two years of the pandemic, during which Qantas received $2bn in government funding to remain afloat.
The airline, led by chief executive Alan Joyce, stood down thousands of workers in a widely condemned move that was found to be illegal. In May, Qantas lost an appeal to the Federal Court, which upheld the decision that outsourcing the 2000 roles had breached the Fair Work Act.
Transport Workers’ Union national secretary Michael Kaine said the bonuses “rubs salt into the deep wounds” of former staff.
“This is a sickening betrayal to illegally sacked workers, disrupted passengers, and Australian taxpayers whose support propped up the airline while executives made cruel decisions that destroyed lives,” he said.
“Qantas executives have turned a once cherished airline into a national disgrace, and Alan Joyce is paying out rewards.”
Mr Kaine said the multimillion-dollar bonuses were a “bribe” to force executives to pressure workers into accepting “substandard conditions”.
A Qantas spokesperson defended the bonuses and said all employees shared in the company’s success.
“These are outrageous statements from the unions and completely ignore the fact that we intend to reward the contribution of all Qantas and Jetstar employees if the Group successfully delivers its Covid-recovery program,” they said in a statement.
“These unions know that since 2015 we have paid out more than $300m in bonuses to our frontline staff.”
However, Mr Purvinas rubbished the response by arguing bonuses have historically been announced but not paid out.
“A $2000 bonus was announced (in) 2018. It still hasn’t been paid to licenced aircraft engineers four years after it was announced,” he said.
Originally published as ‘Sickening betrayal’: Unions slam Qantas executive bonuses
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