A Case Study of Qantas Airline: the Grounded Kangaroo

1957 Words Sep 12th, 2013 8 Pages
Assessment 3: A case study of Qantas Airline: The grounded kangaroo

EXECUTIVE SUMMARY

Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills.

Table of contents

INTRODUCTION 1-2
PROBLEM IDENTIFICATION2-3
PROBLEM ANALYSIS AND
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On the other side, this labour disputes and stoppages occurred because that the low wages of stuff comparing with the high level leaderships and what the Unions fear is a plan which would lay off about 1000 “redundant” jobs (The Economist 2011, p75). This essay is to find and discuss the problem of Qantas in managing the labour disputes and international plans, possible solutions and recommendations will be included depends on the management theories, which Industrial relations and globalization strategy theories will be used.

PROBLEM IDENTIFICATION
Firstly, in the provided case “The grounded kangaroo”, the cause of such problem is that the chief executive proposed a 71% increase in his salary package. In 2010/2011 fiscal year of Qantas, it reported that the net profit before tax was up to $250 million AUD (about $265 million USD), which is a 115% growth from previous fiscal year (Qantas Annual Report 2011, p. 8). There is already a big gap between the income of staff and high level managers. In this case, CEO wanted to put numbers of annual income into his own pocket is quite individualism and it must intensify the conflicts between workers and employers. Otherwise, a five-year strategic plan was based on cutting cost to reduce expenses, including cut 1000 staff from its 33600 workforces, which may be the reason why unions against this plan…

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