Joyce on the defence as backlash grows

Updated

Sorry, this video has expired Video: Alan Joyce on why he took the drastic action to ground the entire Qantas fleet (Inside Business)

Qantas CEO Alan Joyce has defended his unprecedented decision to ground the airline's entire fleet, as the backlash from stranded passengers and sidelined workers continues to grow.

The airline announced the grounding of all domestic and international flights on Saturday in response to a protracted industrial dispute with its employees.

Hopes for an early return to the air rest with an industrial tribunal hearing at Fair Work Australia (FWA) currently underway.

The Government is calling for an end to the conflict between the airline and its unions, saying the industrial umpire must make a determination this afternoon.

Mr Joyce says FWA can end the ongoing stoush between the airline and unions this afternoon by ordering workers to terminate their industrial action.

"Either way it's over once that happens, because we know there's certainty to it," he said.

"It only goes on if there's a suspension, and that's the only element if there's uncertainty going forward."

Mr Joyce says the decision to ground the airline was only taken when unions ramped up their rhetoric after shareholders voted to give him a pay rise at Qantas' annual general meeting on Friday.

Unfortunately after the AGM the unions were more aggressive. They were talking about 48-hour stoppages, ramping it up, baking us for a year. Qantas CEO Alan Joyce

"Unfortunately after the AGM the unions were more aggressive. They were talking about 48-hour stoppages, ramping it up, baking us for a year," he told AM.

"I told the board I had made the decision then. We were losing, lost $70 million to date, $15 million a week, and felt that we had no other [option].

He rejects suggestions that Qantas made the move to try to force the Federal Government to get involved in the long-running industrial dispute.

"We've been telling [the Government] the damage that this action has been causing," he said.

"We've been keeping them informed about the impact commercially and operationally on the business."

Qantas situation at a glance: Fair Work Australia (FWA) rules to terminate Qantas industrial action

Qantas to resume flights from mid afternoon on Monday

Backlog could take at least 24 hours to clear

All domestic and international flights were grounded on Saturday

Lockout of staff was to commence Monday morning

Qantas says 68,000 passengers affected worldwide

447 flights were cancelled worldwide

Qantas is organising alternative flights and accommodation for stranded passengers, and refunds for people yet to travel.

The Federal Government was only informed of Qantas' plan hours before it was announced.

Hotline for affected Qantas passengers: 13 13 13

Qantas updating passengers via its website, Facebook and Twitter

QantasLink and Jetstar are continuing to operate flights

But pilots association vice-president Captain Richard Woodward says it is a pre-planned cynical move.

"He held the passengers to ransom while he blackmailed the Government and the people of Australia," he said.

"I feel very strongly for those poor passengers. They're the pawns in a game that's of Qantas' making."

Pre-meditated grounding?

Tony Sheldon from the Transport Workers Union agrees there are serious questions about whether Qantas management secretly planned days ago the grounding of the airline.

The union told yesterday's emergency FWA hearing of a claim from a catering company that knew its services would not be required a week in advance.

The union said that shows the airline's actions were pre-meditated.

He held the passengers to ransom while he blackmailed the Government and the people of Australia. Pilots association vice-president Captain Richard Woodward

"It's quite clear that it's possible that he may have breached his responsibilities under corporations law, and we want to see him in the witness box to be held to account," Mr Sheldon said.

Mr Joyce says Qantas was "of course" prepared for the option of grounding the fleet.

"We always have plans ready for every scenario, we always have plans ready to take the action that we did," he said.

"There is a lot of planning that goes into this, but the airline practices it and implements it multiple times during the year.

"We knew that this was going to be a potential option. We didn't believe it was going to be the main option.

"This was an amazing decision for us to have to make and it wasn't made lightly. It was only made when every single alternative was exhausted to us and there was nowhere for management to go."

Qantas 'damaged'

Mr Woodward says there was nothing submitted to FWA last night that justified Qantas' decision to ground the airline.

"I received a letter this morning by a man beating on my door at 7.15am and it says that they've taken this action because of the fact that we were not wearing ties and making PAs (public announcements)," he said.

"So we don't believe the action is warranted. We think Alan Joyce has done more damage to the Qantas brand in the last 24 hours than any course of industrial action could have done."

The case returns to FWA this afternoon, but thousands of passengers remain stranded and Qantas workers are waiting to find out if they will be locked out tomorrow night.

Representing Qantas yesterday, Frank Parry SC told the FWA hearing that the airline vigorously opposes industrial action being suspended rather than terminated altogether.

He introduced the airline's head of operations, Lyell Strambi, who conducted a risk assessment of the very scenario that unfolded yesterday.

He explained that advance notice of a lockout would make pilots and staff fatigued and distracted, so the immediate grounding of the airline is a safety measure.

Mr Woodward says Qantas pilots are anxious about the situation.

It's safe to say that neither investors nor the public know exactly what's going on and why this shutdown has happened. It' seems excessive and it seems unnecessary. Australian Shareholders Association chief Vas Kolesnikoff

Rival airline Virgin Australia is bringing in extra staff and planes to help move stranded passengers, while budget airline AirAsia X will bring in special rescue fares for affected Qantas passengers.

Coach transport provider Greyhound Australia has also pledged to help clear the backlog of stranded travellers.

Jetstar, QantasLink and Jet Connect are not affected by the Qantas action.

Topics: air-transport, industry, business-economics-and-finance, company-news, industrial-relations, government-and-politics, lifestyle-and-leisure, travel-and-tourism, australia

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