VIPA, which was set up in 2007 after a secessionist group of Virgin pilots expressed displeasure with an agreement between the airline and the Australian Air Pilots Federation, represented around 500 Virgin pilots in December. Qantas makes no secret of the fact that if Virgin cuts the salaries and conditions of its pilots, it will go to the unions to compensate for its competitive disadvantage. Virgin pilots should expect lower wages and conditions. Credit: AP On Monday, July 16, 2018, the Fair Work Commission approved your new enterprise agreement. This means that it will come into force on Monday, July 23, 2018. In the end, pilots have little or no leverage to negotiate payment and terms. Qantas signed a collective agreement for long-haul pilots in the months leading up to the outbreak of the coronavirus pandemic, and its short-haul contract still has a few years to come. Creditors and shareholders took a haircut under virgin`s government, and now it`s the pilot`s turn. They are faced with changes in pay and conditions that could be equated with significant reductions among the new owners, Bain Capital. Virgin has already given virgin`s pilots` union the big brushstrokes of the pay and conditioning issues it wants to address, but few quantitative details, as negotiations for a new enterprise deal are still in the works. The airline has new owners, a Boston-based investment company. It seems that they want to introduce certain working conditions into Australian airspace, following the model of the United States.
There are allegations that pilots are only paid for the hours they fly. In the cabin, cabin crew would work directly up to 3 p.m. Ros days will be abolished as part of the new agreement. This will be based on the roll-roll cycle, which will begin on October 8, 2018. Instead of working on ROS days, full-time employees work 18h50min per 6-day cycle. It remains to be seen how this could be achieved in the existing business negotiation, but Qantas CEO Alan Joyce is legendary when it comes to playing hardball in labour relations. Insiders say the new agreement makes them effective about AUD 40,000 a year for 70 hours a month at 135 hours per 28 days for the same salary, or about AUD 24,000 per year or about 25 AUD per hour. There are many moving parts as drivers are paid.
But Virgin`s management proposal calls for a reduction in hourly wages, an increase in hours and a reduction in the number of days off. The objective of the exercise is to significantly increase pilot productivity. According to a report published in Thursday`s issue of The Australian, the proposed new agreements could involve a radical restructuring of the newly launched airline`s working conditions. If Virgin Australia sought clean air after the sale and reissue, disgruntled employees could pay the price. Virgin Australia sells to negotiate new enterprise agreements. But workers and their unions are not satisfied with what the airline is offering. On Wednesday, the unions made their displeasure public. But hundreds of pilots have been laid off since then, according to estimates, the total number of pilots at Virgin has fallen to 1000.