Qantas executives line their pockets at the expense of the rank and file

QANTAS faces a tough battle convincing thousands of workers to accept pay rises of just 3 per cent after this week unveiling big jumps in executive salaries and a plan to boost directors’ fees by up to 66 per cent.

Unions warned yesterday that workers were unlikely to accept arguments that they had to tighten their belts given the generous increases awarded to executives.

They are considering lobbying shareholders to vote against the rise in directors’ fees.

Qantas chief executive Geoff Dixon became one of the higher paid airline executives when a $1.59 million bonus and $354,077 in “non cash” benefits doubled his primary pay from $1.64 million to $3.59 million.

That put him ahead of Singapore Airlines boss Chew Choon Seng’s 2003-04 compensation of $S2-2.25 million ($1.69-1.9 million) and well in front of British Airways’ Rod Eddington, whose basic salary, fees and benefits totalled pound stg. 584,000 ($1.5 million).

The airline also wants to increase the money available for directors’ fees from $1.5 million to $2.5 million, despite a 36 per cent increase in 2002.

The airline’s biggest union, the Australian Services Union, is negotiating a new enterprise agreement and is unhappy with the Qantas offer of 3 per cent a year.

ASU assistant national secretary Linda White said the offer was below the private sector average and Virgin Blue’s offer.

She said the bonus paid to Mr Dixon showed the airline was going well, but it was still telling staff that industry uncertainties and competition from government-backed airlines meant it could not afford to pay more.

“This crap about it not performing well is just not true,” she said.

“I think the thing that hits home to people is that one set of performance measures for these executives nets them piles of money and yet (workers) don’t get any of it.

“It’s a matter that people are going to react to significantly.”

The international division of the Flight Attendants Association of Australia, already threatening Christmas strike action about plans to move jobs offshore, said the increases would raise anger and scepticism.

FAAA international division secretary Michael Mijatov said the lack of restraint was offensive.

“It’s total hypocrisy in action,” he said.

“They’re feathering their own conditions like there’s no tomorrow and at the same time they’re just ruthlessly, in relation to international cabin crew, ruthless sending jobs overseas and treating their employees here with utter contempt.”

Meanwhile, Mr Dixon has detailed tensions between Qantas and British Airways. He said there had been increasing tension as Qantas sought to expand at London’s Heathrow Airport.