Qantas Globalisation
Qantas Globalisation
Introduction (Introduction to case/Case background)
- In July/August of 2011, three unions, the Transport Worker's Union, Australian and International Pilots Association and the Australian Licensed Aircraft Engineers Association began to take industrial action against Qantas, demanding better pay and conditions for engineers, pilots and groundworkers to account for the rise in the rate of inflation.
- Admist the existing dispute between Qantas and the unions, CEO Alan Joyce announced future plans to relocate the company to Asia which would come at a cost of 1000 Australian jobs.
- On October 29 Alan Joyce announced his decision to ground all Qantas planes.
Body
Management Issue
- Qantas management are dealing with the issue of globalisation.
Issue Analysis
- Even though it will cost Australians employment opportunities, without moving some elements of production to Asia, Qantas will not be able to compete with its international competitors in the global world. Central to this dispute is the question of whether or not Australia and Australian management can cope with globalisation. (Sydney Morning Herald 2011)
- Over 13000 passengers were expecting to fly with Qantas and were very dissapointed with this decision. The negative press surrounding the issue will be extremely damaging to the brand. (Sydney Morning Herald 2011)
- While the decision to ground Qantas airplanes was a costly and brand damaging move, they were ultimatley left with no choice. It is important for a compant to be able to manage itself. “Effectively they are trying to dictate how we run Qantas – whether it is the pilots’ union demanding the right to dictate pilot pay rates in Jetstar, or the licensed engineers demanding a veto on the modernisation of work practices, or the TWU wanting to limit our use of contractors.” (Freebrain 2011)
Alternative Solution
- Qantas could have engaged in bargaining with the unions and tried to reach a somewhat amicable
Introduction (Introduction to case/Case background)
- In July/August of 2011, three unions, the Transport Worker's Union, Australian and International Pilots Association and the Australian Licensed Aircraft Engineers Association began to take industrial action against Qantas, demanding better pay and conditions for engineers, pilots and groundworkers to account for the rise in the rate of inflation.
- Admist the existing dispute between Qantas and the unions, CEO Alan Joyce announced future plans to relocate the company to Asia which would come at a cost of 1000 Australian jobs.
- On October 29 Alan Joyce announced his decision to ground all Qantas planes.
Body
Management Issue
- Qantas management are dealing with the issue of globalisation.
Issue Analysis
- Even though it will cost Australians employment opportunities, without moving some elements of production to Asia, Qantas will not be able to compete with its international competitors in the global world. Central to this dispute is the question of whether or not Australia and Australian management can cope with globalisation. (Sydney Morning Herald 2011)
- Over 13000 passengers were expecting to fly with Qantas and were very dissapointed with this decision. The negative press surrounding the issue will be extremely damaging to the brand. (Sydney Morning Herald 2011)
- While the decision to ground Qantas airplanes was a costly and brand damaging move, they were ultimatley left with no choice. It is important for a compant to be able to manage itself. “Effectively they are trying to dictate how we run Qantas – whether it is the pilots’ union demanding the right to dictate pilot pay rates in Jetstar, or the licensed engineers demanding a veto on the modernisation of work practices, or the TWU wanting to limit our use of contractors.” (Freebrain 2011)
Alternative Solution
- Qantas could have engaged in bargaining with the unions and tried to reach a somewhat amicable