Qantas CEO Alan Joyce defends laying off 20,000 staff and says COVID-19 worst crisis to hit industry

Qantas chief executive Alan Joyce says the coronavirus outbreak will hit Australia’s economy harder than the global financial crisis – as he defends laying off 20,000 staff.

The national carrier announced on Thursday it will be suspending all international flights and standing down two-thirds of its workforce in the face of the escalating COVID-19 pandemic.

‘This is the worst crisis the aviation industry has gone through,’ Mr Joyce told ABC’s 7.30 program.

‘I know for the economy it’s probably going to be a lot worse than the GFC. 

 

Qantas CEO Alan Joyce has defended the company’s decision to dismiss 20,000 of their 30,000 staff as the COVID-19 outbreak has become the biggest crisis ever to hit the airline industry 

Qantas announced it will suspend all international flights and standing down two-thirds of its 30,000 workers in the face of the escalating COVID-19 pandemic and to try and future proof the company

Qantas announced it will suspend all international flights and standing down two-thirds of its 30,000 workers in the face of the escalating COVID-19 pandemic and to try and future proof the company

‘With the government saying Australians shouldn’t travel overseas and demand coming in dried up because people don’t want to go into quarantine for 14 days.’  

Mr Joyce defended the decision to stand down 20,000 workers.

‘At the end of the day, we’re protecting these jobs,’ he said.

‘We’re not making people redundant and we’re trying this mechanism to make sure we can get through and survive and they have a job at the end of the day.’

Mr Joyce said Qantas was allowing the staff to use up their leave and long service leave. 

‘Some people have months of leave so will be paid for months,’ Mr Joyce said. 

‘Some people have very little leave and what we are allowing people also to do is take up net four weeks of negative leave. 

‘We will pay for that and that gives them the next four weeks.’  

In the 2019 financial year Qantas made $891 million in profit but, like its competitors, has been decimated by the spread of the virus and escalating lockdown measures

In the 2019 financial year Qantas made $891 million in profit but, like its competitors, has been decimated by the spread of the virus and escalating lockdown measures

He told Leigh Sales he had been speaking to Woolworths CEO Brad Banducci about transferring some of Qantas’ workers to the supermarket. 

‘He (Mr Banducci) thinks Qantas employees are ideal employees to have in loading shelves,’ Mr Joyce said.

The company has also frozen the pay of senior executives and board members.

In the 2019 financial year Qantas made $891 million in profit but, like its competitors, has been decimated by the spread of the virus and escalating lockdown measures.

CORONAVIRUS CASES IN AUSTRALIA: 710

New South Wales: 307

Victoria: 150

Queensland: 144

Western Australia: 52 

South Australia: 42 

Tasmania: 10

Australian Capital Territory: 4 

Northern Territory: 1  

TOTAL CASES:  710

DEAD: 6

‘This is every stakeholder in Qantas sharing the pain in order the company can come out of this strong and the company can survive into the future,’ Mr Joyce said.

My Joyce also made direct mention of Australian ex-pats overseas who are looking to return home. 

‘There could be some international operations that will go past the end of March’ he said. 

‘We’re just going through those details with the government at the moment.’ 

Sales directly asked Mr Joyce if the domestic fleet was also at risk of being grounded. 

‘You never say never because it depends on what restrictions are put on people travelling,’ Mr Joyce said.  

Foreigners could be banned from coming to Australia for SIX MONTHS in a move that may cripple the tourism industry – as coronavirus cases rise to 710 and PM says 80% came from abroad

From 9pm on Friday night, only Australian residents and citizens will be allowed to enter. Pictured: Scott Morrison (right) and Treasurer Josh Frydenberg today

From 9pm on Friday night, only Australian residents and citizens will be allowed to enter. Pictured: Scott Morrison (right) and Treasurer Josh Frydenberg today

Australia’s tourism industry has been dealt another crushing blow with Treasurer Josh Frydenberg warning non-residents could be banned from the country for six months – ‘maybe longer’.

The drastic move to shut Australia’s borders from 9pm on Friday came as local cases surged to over 700, with about 80 per cent of those coming in from overseas. 

Only Australian permanent residents and citizens will be allowed to enter the country after Friday’s deadline.   

Mr Frydenberg could not confirm how long the ban would be in place, but suggested the borders would be shut for ‘six months or more’. 

The restrictions would only be lifted once it is ‘safe to do so’ or when there is a vaccine for COVID-19, he told ABC Radio on Thursday night.   

Speaking to Patricia Karvelas on Thursday afternoon, Mr Frydenberg said it would be ‘very hard to avoid’ a recession and a lot of people would likely lose their jobs.

The treasurer said the coronavirus crisis was keeping him up at night.

‘To be honest I don’t sleep at night,’ he told Karvelas.

‘I am up at night worrying about my kids. They are going to school, as they should, and I want them to continue to do so.

‘And like every listener, I’m worried about the state of the economy, about people’s health. I’m particularly worried about family members and friends who may be older, and about those with particular vulnerabilities.’

Bur Mr Frydenberg said ‘it’s not about me’, adding that he has a responsibility to look after the Australian community. 

‘These are unprecedented times but I know that I can’t lose my head, because as the Treasurer of Australia I have a responsibility to help steer the economy through,’ he said.

‘It’s about all 25million Australians pulling together at this difficult time to look after us, and to not whack each other in the mouth at the local supermarket.

‘It’s about letting them get through their mortgage payments and keep them in a job where it’s possible to do so. We all need to hang together at this time.’

AUSTRALIA CLOSES ITS BORDERS – SCOTT MORRISON’S FULL STATEMENT

Prime Minister Scott Morrison announced tough new border restrictions coming into effect at 9pm on Friday March 20:

‘Australia is closing its borders to all non-citizens and non-residents.

The entry ban takes effect from 9pm Friday, 20 March 2020, with exemptions only for Australian citizens, permanent residents and their immediate family, including spouses, legal guardians and dependents.

New Zealand citizens who live in Australia as Australian residents are also exempt, as are New Zealanders transiting to New Zealand. Exemptions for Pacific Islanders transiting to their home countries will continue to apply.

Australian citizens and permanent residents and those exempt from our entry restrictions will continue to be subject to a strict 14 days self-isolation.

Our number one priority is to slow the spread of coronavirus to save lives.

Our government has taken this unprecedented step because around 80 per cent of coronavirus cases in Australia are people who caught the virus overseas before entering Australia, or people who have had a direct contact with someone who has returned from overseas.

Our previous travel and entry restrictions have already meant that daily travel to Australia by non-citizens has been reduced to about one third of what it was this time last year.

We also strongly urge Australians looking to return home to do so as soon as possible. This follows our upgraded travel advice for all Australians not to travel overseas, at all.

The Department of Foreign Affairs and Trade will provide consular advice and assistance, but the capacity for DFAT to provide consular services may be limited by local restrictions on movement, as well as the full scale of the challenges posed by coronavirus.

Australians who cannot, or do not want to, return home should follow the advice of local authorities and minimise their risk of coronavirus exposure by self-isolating.

The government is in discussions with airlines about the continuance of some international flights for the purpose of bringing Australians home and continuing the movement of goods and freight.

These challenges vary and the situation is changing rapidly.

Our government will continue to act on the best available information to keep Australians safe.’

There were more than 700 confirmed cases of coronavirus in Australia by Thursday afternoon

There were more than 700 confirmed cases of coronavirus in Australia by Thursday afternoon

The ban is likely to cause chaos for thousands of temporary residents who live and work in Australia, such as people on skilled work visas. 

The ban does not apply to direct family members of permanent residents and citizens. 

Announcing the ban, the Prime Minister said: ‘We will be resolving to move to a position where a travel ban will be placed on all non-residents, non-Australian citizens coming to Australia, and that will be in place from 9pm tomorrow evening. 

‘For Australians, of course, they will be able to return and they will be subject, as they already are, to 14 days of isolation upon arrival back in Australia.’ 

Explaining the move, the Prime Minister said: ‘About 80 per cent of the cases we have in Australia are someone who has contracted the virus overseas or someone who has had direct contact with someone who has returned from overseas. 

‘So, the overwhelming proportion of cases in Australia have been imported.’ 

Mr Morrison said the world-wide travel ban was an extension of existing bans on people coming from Italy, South Korea, Iran and China. 

‘Measures we have put in place have obviously put an impact on that and this is a further measure now that that can be further enhanced,’ he said.

New Zealand has made the same move, also shutting the border to non-residents. 

Prime Minister Jacinda Arden urged more than 600,000 New Zealanders living in Australia not to go home because that may increase the spread of the virus.

Ms Ardern and Mr Morrison consulted each other before agreeing to shut the borders. 

After Virgin Australia cancelled all international flights, Mr Morrison said national carrier Qantas would continue to repatriate Australians. 

‘I want to thank Qantas also, who are offering to work with us to make sure they maintain flights from particular parts of the world that can assist Australians to return to Australia and we will be working closely with them, and those Australians who are overseas, we have been encouraging them to return to Australia. 

A Qantas employee attends to customers at the check in area at Sydney International Airport on Thursday

A Qantas employee attends to customers at the check in area at Sydney International Airport on Thursday

Passengers wait to check-in at the departures hall at the international airport in Sydney on March 18

Passengers wait to check-in at the departures hall at the international airport in Sydney on March 18

‘Those in remote parts of the world, that can prove challenging but for those in other places, it is our intention to ensure we can maintain flights to enable them to come home as soon as possible.’

Mr Morrison also slammed food hoarders for the second time in two days.

‘I also want to say to Australians that there are no issues with Australians’ food supply. What there is an issue with is the behaviour of Australians at supermarkets. 

‘Frankly there are some Australians not giving Australia a very good name at the moment with their behaviour. 

‘I understand they’re anxious. But for the next six months we need to work together,’ he said.

 

 

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