New Qantas CEO Vanessa Hudson ordered to sit down with union leader, lawyers for mediation

New Qantas CEO Vanessa Hudson ordered to sit down with union leader, lawyers for mediation

Mediation Session: CEO and Union Leader Required

In a bid to resolve the issue of nearly 1,700 workers who were illegally dismissed, the Australian High Court has ordered both Qantas CEO Vanessa Hudson and Transport Workers’ Union national secretary Michael Kaine to attend a mediation meeting. The court’s unanimous ruling in favor of the dismissed employees has resulted in this meeting, which aims to expedite a resolution to the matter that had been significantly delayed due to appeals.

The focus of the mediation session will be on compensation for the dismissed employees. Despite attempts by the airline’s barrister to replace the CEO with the company’s general counsel Andrew Finch, Justice Michael Lee insisted that both the CEO and the union leader be present. He also approved the request for representatives of Qantas Airways and Qantas Ground Services employees to be present at the meeting.

Reputational Damage and Legal Challenges

Qantas’ decision to outsource the jobs of ground workers in 2020, amidst a time when the airline was losing billions of dollars due to the pandemic, has contributed to the company’s reputational damage. The airline is also facing legal challenges from the consumer watchdog, which is seeking a $250 million fine for allegedly selling customers tickets on flights that had already been cancelled, further tarnishing the company’s image.

Financial Performance and Government Subsidies

Despite these challenges, Qantas reported an underlying profit of $2.5 billion for the 2022/23 financial year. Intriguingly, this figure is nearly equal to the $2.7 billion in government subsidies the airline received during the pandemic. This has sparked criticisms that the airline, which was privatised in the 1990s, remains too close to the government. One senator has gone as far as accusing the government of running a “protection racket” for Qantas.

Blocked Bid and Tourism Revenue

The airline is also under scrutiny following claims by its former chief economist that blocking Qatar Airways’ bid for more flights could have brought in up to $1 billion in inbound tourism. Assessing the potential impact of this decision on Australia’s tourism industry and the airline’s revenue will be crucial in the ongoing investigations.

CEO’s Early Retirement Amid Legal Challenges

Amid the legal challenges and alleged illicit practices, Qantas’ CEO Alan Joyce stepped down from his post earlier than scheduled. Vanessa Hudson replaced him, assuming the role of managing director and CEO of Qantas Group. However, Qantas shareholders will still have to approve Hudson as the new managing director at the group’s Annual General Meeting (AGM) in November 2023.

Consumer Law Violation Allegations

The Australian Competition Consumer Commission (ACCC) has also sued Qantas, alleging that the airline had sold tickets for more than 8,000 flights that had already been cancelled. The ACCC claimed that between May and July 2022, the airline cancelled more than 10,000 flights without informing customers about the changes for an average of 18 days, in some cases leaving passengers in the dark for up to 48 days.

Conclusion

The issues surrounding Qantas’ decision to outsource jobs, the subsequent dismissal of workers, and the allegations of consumer law violations have painted a challenging picture for the airline. The upcoming mediation meeting ordered by the Australian High Court represents a significant step towards resolving these issues. However, the outcome of this situation could have far-reaching implications for the airline’s reputation, financial performance, and relationship with the government.