Qantas Human Resources

Vocabulary flashcards summarising major HR, safety, industrial relations and operational facts from the Qantas lecture notes.

Human Resource Management (HRM)

Human Resource Management (HRM) is the strategic approach to managing an organization's most valuable assets—its employees—throughout their entire tenure, from recruitment and hiring to training, development, compensation, and retention, ultimately aiming to maximize employee performance in service of an employer's strategic objectives.

Staff Reduction (2018-2024)

Between 2018 and 2024, Qantas implemented a significant staff reduction, decreasing its full-time employee count by 6,000 , moving from 33,000 to 27,000 staff members, reflecting efforts to streamline operations or respond to market changes.

COVID-19 Stand-downs

During the COVID-19 pandemic, Qantas temporarily stood down approximately 25,000 of its employees, a measure taken to manage the severe downturn in air travel and associated revenue losses.

Ground-handling Outsourcing (2021)

In 2021, Qantas undertook a controversial decision to outsource its ground-handling operations, resulting in the transfer of approximately 2,000 ground-handling jobs from internal staff to external third-party contractors.

Share Program Eligibility

As part of a retention strategy, Qantas offered 1,000 Qantas shares each to 20,000 eligible staff members, which represented about 90 % of its workforce, intending to encourage loyalty and reward employees.

Voluntary Staff Turnover Rate

The Voluntary Staff Turnover Rate represents the percentage of employees who voluntarily leave their employment. At Qantas, this rate peaked at 11.2 % in 2021, indicating a period of high employee departures, but subsequently improved to 6.3 % by 2024, suggesting better retention.

Tech Department Turnover

The Tech Department at Qantas experienced the highest employee turnover among all departments, reaching a significant 30 % in 2022, highlighting potential challenges in retaining technology talent within the company.

Hybrid Working

Hybrid Working refers to a post-COVID work model adopted by many corporate employees where they split their time between working from the office and working remotely from other locations, offering flexibility and adapting to new work preferences.

Cross-functional Teams

Cross-functional Teams are agile organizational structures that combine employees from different functional departments (e.g., marketing, engineering, finance) to work together on specific projects or tasks, aiming to improve collaboration, efficiency, and flexibility.

Digital Skills Recruitment

Digital Skills Recruitment is a strategic hiring focus by Qantas on acquiring candidates who possess strong technology competencies and digital literacy, essential for supporting the company's ongoing business transformation and digital initiatives.

Total Recordable Injury Frequency Rate (TRIFR)

The Total Recordable Injury Frequency Rate (TRIFR) is a safety metric that measures the number of recordable injuries per million hours worked. Qantas saw an improvement in its TRIFR from 24.4 in 2019 to 21.3 in 2024, representing a 13 % decrease, indicating enhanced safety performance.

Lost Work Case Frequency Rate (LWCFR)

The Lost Work Case Frequency Rate (LWCFR) is a safety metric that tracks the number of injuries that result in lost time from work per million hours worked. Qantas's LWCFR rose from 9.3 in 2019 to 11.2 in 2024, a 20 % increase, which has been linked to the impact of outsourcing activities.

Just Culture

Just Culture is an organizational approach to safety management that encourages employees to report safety concerns and incidents openly, including honest mistakes, without fear of punitive action. Qantas aims to foster this by encouraging 13,000 annual safety reports.

Work Health and Safety (WHS) Compliance

Work Health and Safety (WHS) Compliance refers to the legal requirement for organizations to adhere to all relevant workplace safety laws and regulations. Qantas has received multiple improvement notices from regulatory bodies regarding its WHS practices, indicating areas needing rectification.

Allan Joyce

Allan Joyce was the CEO of Qantas who gained notable attention for his compensation, receiving AU 24 million in 2018, making him Australia’s highest-paid chief executive in that year.

Executive Salary Measures (COVID)

During the COVID-19 pandemic, Qantas implemented temporary financial measures that included cuts to management pay and bonuses for its executives, as part of broader efforts to reduce costs and navigate the economic challenges of the crisis.

Frozen Recruitment

Frozen Recruitment refers to a strategic decision by Qantas to suspend non-essential hiring and new staff intake during the period of COVID-19 recovery, focusing on financial stability and resource optimization.

WHS Discrimination Fine

Qantas faced a significant legal consequence in the form of an AU 250,000 fine for WHS Discrimination, specifically for unlawfully firing a safety representative, highlighting issues with its workplace safety practices and employee treatment.

Transport Workers Union Settlement

Qantas reached a settlement with the Transport Workers Union (TWU), agreeing to pay AU 120 million in compensation to approximately 1,800 workers who were unlawfully outsourced from their ground-handling jobs.

Fair Work Act Compliance Costs

Fair Work Act Compliance Costs refers to additional expenses incurred by Qantas, totaling AU 60 million, primarily due to mandated wage increases for its labour-hire employees to ensure compliance with the Fair Work Act.

Union Penalty Claim

The Transport Workers Union (TWU) is seeking a substantial AU 121 million penalty claim against Qantas, alleging that the company engaged in the largest illegal sacking case in Australian corporate history due to its outsourcing decisions.

Annual Training Expenditure

Qantas's Annual Training Expenditure amounts to AU 275 million spent yearly across various critical areas including security protocols, engineering and maintenance skills, leadership development programs, and initiatives to enhance organizational culture.

Future Aviation Investment

Qantas has committed significant Future Aviation Investment, allocating over AU 40 million towards developing a new safety academy, enhancing existing training facilities, and doubling the number of scholarships available for future aviation professionals.

Engineering Academy (2023)

The Engineering Academy, established by Qantas in 2023, is a dedicated facility designed to provide training for up to 300 engineering trainees annually, developing crucial skills for the airline's maintenance and technical operations.

Flight Training Centre (Sydney, 2024)

The Flight Training Centre in Sydney, slated to open in 2024, is a state-of-the-art facility capable of providing comprehensive training for up to 4,500 pilots and cabin crew members each year, supporting the airline's operational needs.

Australian Workers Union (AWU)

The Australian Workers Union (AWU) is one of 14 distinct trade unions that actively represent the diverse workforce employees of Qantas, advocating for their rights and interests.

Transport Workers Union (TWU)

The Transport Workers Union (TWU) is a key union representing ground staff and baggage handlers at Qantas, and it has been prominently involved in various major industrial disputes and legal challenges with the airline.

Enterprise Bargaining Agreement (EBA)

An Enterprise Bargaining Agreement (EBA) is a collective agreement reached between an employer and its employees (or their union representatives) regarding terms and conditions of employment. At Qantas, seven such negotiations collapsed between 2019 and 2020, indicating significant industrial relations challenges.

Industrial Action

Industrial Action refers to organized activities by employees, such as strikes or work stoppages, that are threatened or taken against an employer to achieve specific demands, often related to pay or working conditions. At Qantas, such actions have been threatened by pilots, engineers, cabin crew, and ground staff.

Pay Increase Target

Qantas management's Pay Increase Target is to cap annual wage rises for employees at 3 % per year, reflecting a strategy to control labour costs amidst various industrial negotiations.

2010 Engineer Dispute

The 2010 Engineer Dispute was a significant industrial conflict at Qantas involving its engineers, which escalated to the point where CEO Alan Joyce made the unprecedented decision to ground the entire airline's fleet to resolve the dispute.

Fair Work Commission Appeal (2022)

In 2022, Qantas lodged a Fair Work Commission Appeal, seeking to terminate an existing Enterprise Bargaining Agreement (EBA) that covered approximately 2,500 long-haul flight attendants, aiming to introduce more flexible or cost-effective employment terms.

Boeing 787-9 Order

The Boeing 787-9 Order represents Qantas's decision to purchase four long-range Dreamliner aircraft from Boeing, contributing to its fleet modernization and expansion plans.

Boeing 787-10 Order

The Boeing 787-10 Order signifies Qantas's acquisition of eight larger-capacity Dreamliners from Boeing, further enhancing its long-haul capabilities and passenger capacity.

Airbus A350-1000 Order

The Airbus A350-1000 Order involves Qantas's purchase of 12 ultra-long-range aircraft from Airbus, bringing the total new aircraft ordered for fleet expansion to 28 planes, aimed at supporting new routes and increasing capacity.

Data Centre Outsourcing

Data Centre Outsourcing refers to Qantas's strategy of contracting its IT infrastructure and data management to IBM, a third-party provider, primarily for reasons of cost efficiency and specialized expertise.

Amadeus Reservation System

The Amadeus Reservation System is a global booking platform used by Qantas, provided by a Munich-based company, which manages the airline's worldwide flight reservations, ticketing, and other related services.

Jetstar Call Centre Outsourcing

Jetstar Call Centre Outsourcing describes the domestic outsourcing of customer service operations for Qantas's low-cost subsidiary, Jetstar, to an external operator based in Melbourne, aiming to streamline support services.

Global Subcontracting

Global Subcontracting at Qantas involves outsourcing various operations to offshore locations, including maintaining a flight-attendant base in London and utilizing IT support services in India, to leverage international cost efficiencies and specialized labor pools.

Indeed Employee Rating

The Indeed Employee Rating for Qantas is an average score of 3.9/5 based on 564 employee reviews on the Indeed platform, providing an indication of overall employee satisfaction and sentiment towards working at Qantas.

Creating Great Program

The Creating Great Program is a company-wide cultural initiative launched by Qantas designed to enhance employee engagement, foster a positive workplace environment, and align staff with the company's values and objectives.

Employee Survey Frequency

Qantas conducts Employee Survey Frequency at multiple touchpoints throughout an employee's journey, including onboarding, role changes, work anniversaries, return from parental leave, and additionally, twice a year for broader organizational feedback.

Recovery and Retention Program (2022)

The Recovery and Retention Program launched by Qantas in 2022 offered 1,000 shares to employees who remained with the company until August 2023, as a strategic measure to stabilize and retain its workforce during a critical recovery phase.

AIAO Membership

AIAO Membership signifies Qantas's affiliation with the Australian International Airlines Operations Group, suggesting involvement in industry collaborations, standards, or advocacy within the Australian aviation sector.

Workers Compensation Legislation

Workers Compensation Legislation refers to the legal framework and statutes that govern the compensation provided to employees who suffer injuries or illnesses as a result of their employment, ensuring their rights to medical care and financial support.

Work Health and Safety Act

The Work Health and Safety Act is the primary Australian legislation that sets out the legal obligations for employers to ensure a healthy and safe workplace for their employees, aiming to prevent workplace injuries, illnesses, and fatalities.

Absentee Rate 83 %

An Absentee Rate of 83 % was recorded on some shifts at Qantas in 2023, which is an extremely high figure, often cited as evidence of very low staff morale and significant challenges in workforce engagement and attendance.

Human Resources Case Study Value

The Human Resources Case Study Value for Qantas emphasizes that the airline's substantial size and operational complexity make it an ideal and prime example for in-depth analysis of Human Resource Management (HRM) effectiveness, challenges, and strategies in a large corporate setting.