VARA EA Update - Job Security Provisions
Below we have outlined the provisions contained in the final document released to vote regarding job security. This has been a primary focus of bargaining following the announcement of the exit of the A320, in addition to the prior announcement of the F100 exit.
As we outlined previously our approach, in conjunction with SALPA and the TWU, was to focus on negotiating terms in a new EA that mitigate the impact of the fleet exits as far as possible for VARA pilots.
We recognise the significant impact that the exit of the A320 fleet has had on pilots and the importance of providing as much certainty as possible in the proposed EA.
The Unions and SALPA have therefore focused on providing clear choices for VARA pilots, to allow pilots then determine if their preferred position is on the E2, the B737 or is a voluntary redundancy. We have also negotiated financial risk for the business if a VARA pilot is unable to achieve a position in rank on their preferred fleet.
Job Security Changes
The proposed agreement contains a number of changes negotiated to achieve the above aims.
As pilots are aware Virgin categorically ruled out reserved B737 positions in rank and base being offered to A320 pilots. The basis for this position is that this would require a change to the VAA Narrow Body EA to accommodate positions being awarded outside of the normal bid import process. The AFAP agrees that from a legal standpoint a variation to the VAA EA would be required.
Given the relative GDOJ of VARA pilots is in line with access to Perth VAA B737 commands, the parties agreed that our energy was better spent on supporting VARA pilots access to B737 positions through the bid import system. This requires only that VARA pilot utilise their existing EA rights to integration as negotiated by the AFAP for VARA pilots in 2014.
Key Changes
The following key changes from the current VARA EA are included the final document to be voted on by VARA pilots:
- Removal of clause 24 – withdrawal or reduction in establishment of aircraft type
- Removal of the 10% cap limiting movements for current A320/ F100 to the B737 while those fleets remain in operation (noting VARA can delay the release of a pilot to an awarded B737 position to support the operation of the A320/ F100 fleets until exit date)
- For an A320 pilot bidding voluntarily for an E2 position, this will meet the requirements for adequate alternate employment and no redundancy payments will apply.
- For A320 pilots bidding for the B737 only, VARA can offer an E2 position after the exit date of the A320 fleet if they have not been awarded a B737 position. Provided the position offered is in rank this will meet the requirement for adequate alternate employment. However, pilots in this circumstance will have no cap or freeze when on the E2 and can move as soon as a B737 position becomes available.
- In the event that an A320 pilot is not offered either a B737 or E2 position in rank then the full compulsory redundancy payments would apply (3 weeks per year of service up to 52 weeks, notice of termination), and a pilot will have a right of re-employment in accordance with the EA for up to 2 years.
- If compulsory redundancy payments are made, these will be calculated at the full A320 salaries not the transitional salaries for A320 pilots moving to the E2.
A summary of these options is in the following diagram attached here.
A320 Pilots Bidding only for B737
The AFAP, SALPA and the TWU have created financial risk for VARA in the worst case scenario of there being no available B737 position in rank for an A320 pilot using their GDOJ as either:
- training an A320 pilot onto the E2 only for them to move to the B737 a short time later; or
- paying a full redundancy payment (3 weeks per year of service up to 52 weeks) only to have to rehire the pilot within 2 years.
VARA want to avoid the above scenario, and have committed to it on the basis they expect to be able to satisfy the choice of A320 pilots to move in rank to the B737, E2 or volunteer for redundancy. In order to have access to these protections, an A320 pilot must submit a bid for an B737 position in rank/ base by no later than 19 January 2026.
VARA expect 737 positions to be available before the exit date of the A320 to allow A320 pilots who want to transfer in rank using their GDOJ. VARA will have the flexibility to delay the release of A320 pilots to the 737 to maintain A320 operations until the fleet exits.
Bidding Process
The parties have agreed on a fixed date of January 19, 2026 by which pilots need to bid to set their preference for alternate roles or to volunteer for redundancy. This date will coincide with the bid import dates for the end of the re-employment policy (see below).
Voluntary Redundancy
The voluntary redundancy payment will be $90,000 as compensation for the pilot saving VARA the training costs of the pilot moving to a new position on either the E2 or B737. Pilot considering this option should discuss the taxation treatment of the above payment with their account or other tax professional.
B737 Positions – Resource Plan
As VARA pilots will recall, the resource plan released by VAA earlier this year forecast 4 Captain and 12 First Officer B737 positions across the whole operation for the next 12 months.
VARA pilots will have seen that Virgin has now updated the resource plan as follows:
Forecast Period: RP09/25 to RP08/26
Based on the current forecast projections, Virgin Australia anticipates recruitment for B737 Captains and First Officers in the forecast period.
The following information is current as at the date of issue:
Resource Group - Recruitment Required*
B737 CPT VAA - 20
B737 FO VAA - 10
*Subject to change; Assumes 103 airframes
The resource plan is based on assumptions and is subject to variability. A revised plan will be issued every 6 months, or in the event of any material change in Flight Crew resourcing requirements.
It is important to also note:
- The above numbers are in addition to any positions awarded prior to the 1 Sept 25 bid import.
- Excludes positions assigned to VARA F100 Pilots transferring to the B737.
- Bid Imports occur at 0700 Local (AEST) on the first Monday of each RP.
Re-Employment Policy – End Date
The Re-Employment Policy has an end date of 4 April 2026, at which time any inactive pilots not re-employed into the VA Group will be removed from the GDOJ and put on a hold file (see details below).
Virgin has now clarified that the 4 April 2026 end date is the date an inactive pilot must have commenced employment in the VA Group (in other words day 1 induction must be before 4 April 2026) to retain their GDOJ.
This will necessitate an inactive pilot being awarded by the January import (19 January 2026) to allow time for the commencement of a role as the last induction course prior to the expiry date is scheduled for 30 March 2026. The timeline is:
- Bid import conducted 19 Jan 26.
- In accordance with the Re-Employment Policy, the Company shall publish awarded positions within 21 days of the bid import.
- Inactive Pilots will have 2 weeks to accept or decline the awarded position.
- Latest date of acceptance of an awarded position is therefore 22 Feb 26.
- This will leave sufficient time to backfill awards from the following 16 Feb 26 bid import and for pilots to commence employment prior to the expiry date.
Transition to the Hold File
Inactive pilots who have not been re-employed by 4 April 2026 will be removed from the GDOJ list. However, those bidding for 8 consecutive RPs will be added to a Hold File and offered positions ahead of other external pilots. While the Hold File order is based on GDOJ, even if a pilot is re-employed from the Hold File this will not reactivate their original GDOJ date.
Summary
We understand the above will give rise to further questions. Please contact AFAP Senior industrial/ Legal Officer Pat Larkins by email at patrick@afap.org.au or by calling (03) 9928 5737.
Regards,
Paul Alexander – AFAP VARA Pilot Representative
Pat Larkins – Senior Legal/ Industrial Officer