Case Studies

Question 1

I: Stakeholders

Answer 1

Stakeholders: Qantas has a highly unionized workforce 16 different unions e.g. Australian Service Union - Against pay cuts, outsourcing, casualisation of work

Question 2

I: Legal:

Answer 2

Work choices substantially amended the workplace relations act in 2006, providing Qantas with more flexibility in staffing, allowing Qantas to reduce its labour costs

• Allowed Qantas to write their own workplace agreements for Jet star
• Agreements now only need to meet the minimum award classification of wages set by fair pay commission

WHS:
Qantas WHS program has increased safety awareness and lead to an 80% reduction injury since 2001
-Includes safety management systems
-Fatigue Risk management
-Employee recognition and reward for outstanding safety
EEO:
Qantas abides by the Equal employment Opportunity Workplace Act and has taken measures to increase female participation
- in 2017. women in senior positions have increased to 35%

Question 3

I: Technology

Answer 3

To main competitiveness Qantas had introduced new technology:

• New planes such as Dream Liner and A380
• New inflight entertainment systems
• Online check in
• Self Serve Checkouts

Question 4

I: Social

Answer 4

Now more part time and casual employees at Qantas (25% of workforce) due to needs to cut costs and maintain competitiveness - Allows flexibility during peaks + troughs

Qantas has cut costs by $8 Billion in last 14 years - mostly reforming HR Practices.

Question 5

P: Maintanence

Answer 5

Flexible Working conditions:

• Qantas had implemented a number of flexible working initiatives to assist in work life balance and family life. These include:
• -Increasing opportunities for part time and flexible employment
• -A ‘keep in touch’ program for staff on maternity leave
• -New childcare facilities in Sydney, Melbourne and Brisbane

Question 6

P: Separation

Answer 6

Due to the GFC, increasing competition, technological change and falls in profitability. Qantas:

• forced to downsize 5000 staff between 2014-2016
• involuntary redundancy (retrenchment)

Question 7

S: Leadership style

Answer 7

Under government ownership, Qantas adopted an authoritarian leadership style, however in 1995 when Qantas was privatized, they adopted a participative style where employees now much more input into decision making.

Question 8

S: Training and Development

Answer 8

Qantas invests more than $275 Million a year in training and development - to maintain a sustainable competitive advantage

The ongoing training is crucial due to the airline’s rapid technological change and global competition

Recently Qantas has implemented training programs in:

• leadership and culture
• Customer Service
• People and Safety

Qantas Pilots do more than 48 000 hours of annual training in aircraft simulators to ensure best service and safety.

Qantas uses online learning (Qantas College online) to train its staff. - Allows Qantas to quickly, economically and effectively upgrade and maintain the skills and knowledge of its workforce

Question 9

S: Rewards

Answer 9

Qantas uses it rewards to Attract, Retain and Motivate its employees
in 2018, as a result of Qantas’s record profitability. A Cash bonus of $2500 for full time and $2000 for part time staff was given to employees who had agreed on an 18-month wage freeze.

Question 10

S: Workplace disputes

Answer 10

On October 29, 2011. CEO Alan Joyce made the decision to lock out employees associated with the bargaining for new EA (Engineers, Pilots, Bagging Carriers) after months of ongoing disputes, therefore ‘grounding’ the Qantas Fleet globally. - Causing global shock and a quick response from the FWC

In the early hours of October 31st, 2011, Fair Work Australia ordered that industrial action taken by Qantas and all involving unions be terminated immediately in fear that an extended period of grounding would cause significant damage to the natural economy (mostly regarding tourism)

For the Pilots, disputes entered binding Arbitration over a new EBA before Fair Work Australia, right after the grounding period, included a 4.5% pay rise and an additional 3% rise every year for 2 years.

For the Engineers, in December 2011, both parties reached an agreement following Arbitration over a new EBA, which included 3% annual pay rises and changes to work practices.

Question 11

E: Staff Turnover

Answer 11

Qantas Staff turnover decreased in 2018 to 4.8% from 15% in 2011, indicating improved HR effectiveness

Question 12

E: Absenteeism

Answer 12

Absenteeism rates have decreased in recent years and average 9 days in 2018 from 11 days in 2017

Question 13

E: Levels of Disputations

Answer 13

Recent Action by Qantas to 
-Axe jobs (5000 jobs between 2014-2016)
-Introduce more part-time and casual employees (25%)
- Outsource jobs
Have caused Industrial tension

Question 14

E: Accidents

Answer 14

2018 shows the lowest injury frequency rate of 20 compared to 30 accidents in 2016, indicating improvements in training and development (evident in online training and aircraft simulators)

Question 15

E: Workers Satisfaction

Answer 15

in 2018, group engagement remained steady at 80%, compared to 40% in 2011, indicating high levels of worker satisfaction and effective HR management / strategies (job design, rewards).