COMP NEWS – Qantas Group, of the Australian-based Qantas Airways airline, announced that it would be giving nearly 20,000 employees a one-time bonus of AU$5,000.

Around 19,000 EBA-covered Qantas Group employees will be offered a one-off boost of AU$5,000 as the national carrier shares the benefits of its recovery.

The Group today released a market update showing its net debt – which rose to more than $6.4 billion as the company borrowed heavily to survive the pandemic – had fallen well below pre-COVID levels to around $4.0 billion. Travel demand remains strong and the Group is on track to return to profit in FY23.

The one-time bonus comes paired with a 2% salary increase.

The one-off recovery boost is in addition to permanent wage increases of two per cent[1] currently being negotiated across the Group, which follow a two-year wage freeze for all personnel.

This payment also comes on top of 1,000 share rights awarded to non-executive employees – worth around $4,500 per person at today’s share price – as part of a Recovery and Retention program announced earlier this year. These shares will vest in August 2023 if key conditions are met.

The recovery boost will be made to employees after a new enterprise agreement is finalised; nine agreements covering around 4,000 employees have been finalised already and they will receive the recovery boost shortly. Consistent with previous discretionary payments, eligibility conditions will apply.

Qantas Group CEO, Alan Joyce, offered some comments on the incoming employee bonus, clarifying that the company’s recent financial losses – lingering from the COVID-19 pandemic – have prevented the company from giving substantial raises. However, Joyce said that the one-time payment was vital to boosting employee retention and happiness until Qantas Group could financially recover from the strain of the pandemic.

“We can’t afford to permanently increase salaries beyond the two per cent threshold we’ve set, but we can afford to make this one-off payment on top of the Qantas share rights we’ve already given.

“Getting our permanent cost base right is how we’re able to reinvest, which ultimately means more opportunity for our people.

“The structure of our business means many of our people see their salary increase significantly as their careers progress. That progression often relies on the business growing, so the recent investments we’ve announced in new aircraft and new ventures will see employees share in the benefit as the national carrier enters a new phase,” added Mr Joyce.

To read more about Qantas Group’s one-time employee bonus, click here.

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