The Australian Services Union accused the airline of pay discrimination, saying members working frontline jobs were having shifts changed so the carrier could avoid paying penalties.

Linda White, the ASU assistant national secretary, said the payouts revealed yesterday in the carrier’s annual report, showed there were two classes of people at Qantas — “very first-class and the rest”.

“What’s happened is an outrage and is breathtakingly arrogant,” Ms White declared, noting that Mr Dixon’s departure package included a $3 million payment because directors determined he would be taxed and “significantly disadvantaged” due to retrospective changes to Australian superannuation law.

The report also shows the next highest payouts went to former executive general manager John Borghetti, who got $4.93 million in salary, superannuation and various non-cash benefits, and former executive director and chief financial officer Peter Gregg, who got a total of $4.88 million.

Ten of the 11 directors also got a $783,495 pay rise in a year when Qantas’ profit slumped 88 per cent and shareholders were not paid a final dividend.

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From Page 31

The Australian Shareholders’ Association flagged that it was likely to vote against the Qantas board’s remuneration report at the company’s October annual meeting.

Mr Dixon ended his eight-year tenure as chief executive last November 28, handing the controls to then Jetstar boss Alan Joyce, and served for another four months as a company consultant.

His total payout, comprising cash and non-cash benefits for the five months he worked full-time and those he got when he left four months later, amounted to $2.06 million, down from the $5.4 million he got in the previous full year.

But his departure package was boosted by $3.17 million in share-based payments, the $3 million superannuation deal, $1.72 million in annual leave payments and a $657,500 termination payment.

His “golden handshake” was the highest of any Qantas paid three departing directors and five members of its key executive committee who resigned during 2008-09.

Five others shared $10.2 million, with former industrial relations chief Kevin Brown getting $3.37 million; David Cox, who was head of engineering receiving $2.87 million; and Curtis Davis, executive manager services, $2.18 million.

New CEO Mr Joyce received $3.66 million in salary and benefits.

He and other newly-appointed executives received less than their predecessors, with the other salaries ranging up to $1.18 million.

Chairman Leigh Clifford received salary, non-cash benefits, superannuation and travel entitlements amounting to $612,507 compared with $411,947 the previous year, when he was a director for three months and chairman for seven-and-a-half months.

 

$31 MILLION IN FAREWELLS

$10.7m to former CEO Geoff Dixon

$4.93m to former executive general manager John Borghetti

$4.88m to former executive CFO Peter Gregg

PLUS Five others share $10.2m

this article sources from http://www.heraldsun.com.au/business/terry-mccranns-column