Transport Workers Union demands Qantas board shake-up
The TWU wants the chief executive position removed from the Qantas board, and a worker representative appointed.
The Transport Workers Union has called for a major shake-up of the Qantas board, including the resignation of chairman Richard Goyder, the removal of the chief executive position from the board, and the appointment of a workers representative.
The TWU alleges Qantas is in breach of its governance code of conduct and ethics, which say “the key principle underpinning the code is compliance with laws, regulations and ethical standards.”
It said a board overhaul was needed given the High Court ruling that Qantas was responsible for the “largest case of illegal sackings in Australian corporate history”, an unprecedented prosecution from the NSW safety regulator, a class action from angry customers, and $250m in penalties being sought by the competition watchdog.
TWU national secretary Michael Kaine said “there’s no time like the present for a full shake-up of a board which is in breach of its own code for unprecedented illegal behaviour”.
Mr Goyder, elected for at least three years in 2022, indicated last week he did not intend to resign.
The Qantas code of conduct and ethics says “compliance with the law means observing the letter and spirit of the law as well as managing the business of the Qantas Group so that the group and its personnel are recognised as ‘good corporate citizens’ at all times …”
The Qantas Board Charter also states “the board is responsible for ensuring that Qantas management recognises Qantas’ legal and other obligations to all legitimate stakeholders” which are “groups… likely to sustain a social, environmental, economic or financial impact from Qantas’ actions. They include shareholders, customers, suppliers, employees, governments, regulators and members of the communities where Qantas operates,” it says.
Mr Goyder has said management and the board “only take a course of action if they believe it’s lawful. However, we also accept there must be accountability where those actions are found to be otherwise, and we will work through these and other issues with relevant stakeholders.”
Mr Kaine said Australian Institute of Company Directors guidelines state the responsibilities of a board include holding the CEO to account for performance outcomes. He said the board rubber-stamped poor decisions by former CEO Alan Joyce.
“To ensure the accountability necessary to get the national carrier back on track, there is a good case to be made for the board to operate independently of the CEO,” he said.
“Richard Goyder is completely out of touch with reality. He maintains Qantas outsourced for ‘sound commercial reasons’ despite four Federal Court and seven High Court judges finding it was unlawful conduct which prevented workers accessing their rights under the Fair Work Act.
“The prohibited reason was, by definition, unsound – it was illegal. Qantas must reverse its destructive business model.”
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