The unions representing Qantas workers have reacted incredulously to the news outgoing CEO Alan Joyce has pocketed more than $10m in shares for meeting the company’s Covid-19 goals.
On Friday Qantas announced to the ASX that Joyce had received 1.74m shares, valued at just over $10m, under the company’s long-term incentive and Covid recovery retention plans. Chief financial officer Vanessa Hudson, Joyce’s likely successor, also took home $2m worth.
The announcement came just hours after the consumer watchdog said it hopes Qantas will be dealt a record fine for a consumer law breach if allegations about the airline selling cancelled tickets prove correct.
The ACCC this week launched federal court action claiming the troubled airline had engaged in false, misleading or deceptive conduct after continuing to sell thousands of tickets for flights that were already cancelled.
Meanwhile, the company backflipped to remove the expiry dates on $570m worth of Covid travel credits after Joyce faced a bruising grilling in the Senate on Monday.
Qantas has also faced scrutiny recently over its lobbying of the government to reject a bid by Qatar Airways to increase the number of flights it operates into Australia.
On Saturday, TWU national secretary Michael Kaine said Joyce was “finally facing the public scrutiny he deserves”.
“Only at Qantas can a company facing three unprecedented court challenges from workers, a safety regulator, and the consumer watchdog, as well as a class action from furious customers, pay the CEO a $10m bonus – topping up his pay packet to an expected $24m,” Kain said.
“This, alongside a $2.5bn record profit after $2.7bn in taxpayer handouts, is one of the biggest swindles this country has ever known.”
Joyce’s bonuses included incentives deferred over the past three years during Covid. Kaine said during this time the airline had fired thousands of workers, suppressing wages for the ones that it kept.
“Qantas and aviation need a total reset. Good, secure jobs and quality standards need to be brought back,” he said. “For that, we need an ideological do-over at Qantas and a safe and secure skies commission to set appropriate standards for workers and the travelling public.”
Assistant national secretary of the Australian Services Union, Emeline Gaske, said workers were “shocked and disappointed” to see such bonuses awarded for a period when there was mass layoffs, jobs were sent off-shore and wages were frozen.
“It is poor practice to reward management for short-term thinking and cost cutting that has placed enormous stress on customer service staff and diminished the travel experiences of thousands of Australians,” Gaske said.
The company declined to respond to the union’s comments but pointed Guardian Australia to previous comments from Joyce made after the company revealed its underlying profit before tax was $2.47bn for the last financial year.
“Our people have been absolutely critical to our recovery – and it hasn’t been an easy road for them,” Joyce said. “Mid-crisis, we mapped out two bonuses to say ‘thank you’ and to help retain the talent we needed when times were tough.
“With the recovery now formally complete, more than 21,000 of our people will share in around $340m.”
Joyce said most staff members would receive a bonus worth $11,000, including 1,000 Qantas shares and $500 staff credit.
After 15 years in charge of the airline, Joyce is stepping down as CEO of Qantas in November.
Australian Associated Press contributed to this report
