simongr said:
Just some quick maths - assuming the engineers are on A$85,000 - that additional 2% in the first year alone is a cost of $3,000,000.
Well maybe we should put those figures into context.
Firstly, inflation is running above 4% and may approach 5% (thank you Costello and Howard) so the pay claim is in line with inflation.
Secondly, QF pre-tax profit is up 40% to over a $1 billion (an extra $400 million) so the pay claim is a fraction of extra profit (productivity has effectively gone up without due recompense to the employees).
Thirdly, Geoff Dixon and others at the top are earning HUGE salaries/bonuses, with a take home pay of $1.4 million more than last year out of a total of $6.7 million, despite totally misrepresenting the failed private equity deal.
Directors pay alone is up $2.2 million.
QF has 1700 engineers and is supposed fly willing to pay $100,000 for 6 month contracts to strike busters. It only has to hire 30 strike breakers to blow a $3 million budget over 6 months!
I am assuming fellow readers expect their own pay to have some relationship to CPI and/or employer productivity?!
Sources below
Qantas profit edges towards $1.5 billion | NEWS.com.au Business
Qantas (qan.ASX:
Quote,
News) now expects its pre-tax profit for the 2007/08 year to be about 40 per cent higher than last year's $1.032 billion result, or up by around $400 million dollars.
Crikey - Geoff Dixon, you've got nerve, $2.9 million of it - Geoff Dixon, you've got nerve, $2.9 million of it
"...Mr Dixon, was paid $6.7 million, up on the previous year's amount of $5.3 million. His pay was boosted by a cash bonus of $2.9 million, compared to around $1 million the year before.
That bonus because of the 53% rise in earnings, the 11% higher revenues and 8% rise in costs and from the sharp improvement in passenger numbers.
This is a board and senior management which had to be forced to provide trading updates during the bid which showed clearly the rebound in Qantas' fortunes and it was only an act of greedy stupidity by a New York hedge fund which sunk the offer when it was closing in early May.
The 2007 Qantas annual report reveals that directors have capped the volatile past 12 months (of their own making) by giving themselves a $2.2 million pay rise. That's $13.26 million, or up 21.8% on the pay in 2006...."
Radio New Zealand News : Latest News : Qantas seeks NZ engineering staff to break strike