Updated: Former employees of Rex, reportedly in debt for $500 million, have vented their frustration by attacking an effigy of John Sharp, chairman or the airline, days after they found out they had no job.
In a video obtained by Seven, a mob of former staff can be seen angrily pulling apart the effigy which had an image of Sharp’s face on it.
The footage was reportedly filmed on Friday, 2 August, following the announcement that hundreds of employees no longer had a job after the airline was placed into administration.
In the clip from Seven News, Michale Kaine from the Transport Workers Unions, explained that staff are “angry” and “uncertain” about their future.
This was exasperated by the news that the outgoing CEO – Neville Howell – was “lining his pockets” Kaine said.
Howell is currently paid an annual salary of $352,600 as stipulated in his employment terms when he took up the position of CEO on 5 June.
An update to his employment terms just days before the surprise trading halt means that Howell is entitled to 12 months’ salary even if there are changes to his contract.
https://www.travelweekly.com.au/article/rex-ceo-entitled-to-352600-pay-out-after-his-employment-terms-were-updated-just-days-before-trading-halt/
Rex later confirmed that they wanted to ensure Howell was present for the 12 months following the airline going into administration.
Hundreds of Rex employees were reportedly axed just 48 hours after the airline went into administration.
They were informed that 610 jobs were at risk including 360 from its capital city operations and 250 from its regional business.
Administrators say the company is half a billion dollars in debt.
The first creditors meeting, held by administrators from consultancy giant Ernst & Young (EY) on Friday, heard that Rex’s debts totalled $500 million, owed to 4,800 creditors, including former employees.
One devastated air hostess took to Facebook to share the sad reality of the situation after she lost her job. In response to a post from a Rex customer complaining her flight had been cancelled Layla Rackley said: “I know this is so frustrating but the Rex staff, including myself, have lost our jobs very unexpectedly and we are all heartbroken.”
Earlier this week, Travel Weekly asked whether Rex’s failure was the result of structural problems within the Australian aviation industry or whether it can be attributed to Rex’s management.
https://www.travelweekly.com.au/article/travel-weekly-take-was-rex-failure-the-result-of-a-market-duopoly-or-internal-politics/
