As reported earlier today, Qantas Airways Limited (ASX: QAN) has been forced to temporarily stand down two-thirds of its employees due to the COVID-19 pandemic. Up to 20,000 Qantas workers will be temporarily stood down without pay as the national carrier faces an unprecedented crisis.
Despite the disheartening news, supermarket giant Woolworths Group Ltd (ASX: WOW) and other retailers have offered short-term jobs to the displaced Qantas staff.
What has Woolworths offered?
According to an article in The Australian Financial Review (AFR), Qantas CEO Alan Joyce received an email from Woolworths chief executive Brad Banducci, offering the airliner a helping hand. Unlike the detrimental impact COVID-19 has had on the airline and tourism industry, supermarkets like Woolworths have experienced unprecedented demand.
Woolworth is reportedly offering the displaced workers flexible contract and casual roles in order to meet the needs of customers. Many workers from Qantas have similar skills that can be applied to the retail industry such as customer service and labour jobs.
The offer from Woolworths to hire Qantas employees comes after Coles Group Ltd (ASX: COL) reported that it would be hiring 5,000 casuals to meet the surge in consumer demand.
What feedback have Qantas and Woolworths received?
Although some Qanats staff were placed on annual or long service leave, many employees will not have access to entitlements. Following the latest travel advice from the government, Qantas has suspended international flights from March, which has put tremendous pressure on the airliner. According to the AFR, the Australian Council of Trade Unions slammed the airliner's decision to cut jobs, a day after the airline industry received a $715 million taxpayer bailout.
On the contrary, Woolworths has experienced a surge in consumer demand on the back of the COVID-19 pandemic. In addition, the retailer, which has a casual workforce of around 55,000 workers, has offered to help those who are not entitled to leave, should they require time-off.
Foolish takeaway
The interaction between Qantas and Woolworths represents the dichotomy that the COVID-19 pandemic has offered. This contrast has been strongly reflected in the share prices of both companies.
The Qantas share price has plunged more than 70% since the start of the year and is currently trading at multi-year lows. On the contrary, the Woolworths share price has managed to stabilise and is currently 7% higher for the year.
Despite the doom and gloom, the interaction between Qantas and Woolworths should be a sign of optimism to investors and serve as a reminder that the market will always present opportunities.
