Qantas Group Capitulates to Union Demands

[kangarooflyer88]

Spotted this juicy article on independent journalist Michael West's website earlier today, which revealed that Uncle Alan's stockings were filled with Christmas cheer this year, awarding maintenance staff a 33% pay rise over five years with JetStar pilots being offered a 21% increase over the next 6 years:

Alan Joyce relents to more than double pay-deal in its fight with Qantas engineers union - Michael West

Union-brawling Qantas chief Alan Joyce has capitulated to pay rises of up to 33% in a deal with the Aircraft Engineers' Association

michaelwest.com.au

Given the holiday cheer Uncle Alan is in, one wonders whether Qantas will settle with domestic flight attendants to stop a potential strike that could disrupt holiday travel for many Australians. At the same time us fellow elites wonder if Uncle Alan will spread that holiday cheer to upgrading the facilities Qantas provides us such as their flagship Qantas lounge at Hobart's international airport.

-RooFlyer88

 

[RooFlyer]

God knows their profit will be healthy enough.

 

[kangarooflyer88]

God knows their profit will be healthy enough.

Are you referring to their deal with the unions, the possibility of a refurbishment to the Hobart lounge or both?

 

[SYD]

Pretty sloppy journalism but how long before someone does the math and works out those rises are below CPI… Who outplayed who?

 

[kangarooflyer88]

Pretty sloppy journalism but how long before someone does the math and works out those rises are below CPI… Who outplayed who?

That's open for debate as we aren't sure what future inflation will look like. It could very well be that we're back at the healthy 1-2% inflation figure within a year, particularly if the RBA keeps interest rates high whilst we enter a recession. At the same time, many people simply won't accept higher prices so they'll just end up pocketing the 33% pay rise. Remember we all have a choice when we go out to shop: accept the higher prices or go elsewhere!

 

[SYD]

That's open for debate as we aren't sure what future inflation will look like. It could very well be that we're back at the healthy 1-2% inflation figure within a year, particularly if the RBA keeps interest rates high whilst we enter a recession. At the same time, many people simply won't accept higher prices so they'll just end up pocketing the 33% pay rise. Remember we all have a choice when we go out to shop: accept the higher prices or go elsewhere!

Exactly, so when airfares rise by a further 30%….

But CPI could fall or just keeps going up for now. No one knows when it will fall or whether it hits double digits again. So QF amortising 30% over 7 yrs is actually a sensible risk mitigation strategy.

How many peeps didn’t locked their mortgages at 4% 6 mths ago and are now facing fixed rates of 6 or 7% and rising?