As outlined in our previous update, following two constructive compulsory conciliation conferences conducted as part of the protected action ballot process before Commissioner Redford, the AFAP, AIPA and the TWU have reached an in-principle agreement on a proposed new Enterprise Agreement that all three unions will endorse and recommend to members.
This is an important milestone in the bargaining process and reflects the substantial progress that has now been made towards reaching a new EA. In principle agreement means that the parties will now draft and finalise a document to be put to vote of the pilot group, who will ultimately determine whether the agreement is approved.
Commissioner Redford has since issued a formal Recommendation recording that outcome. The Recommendation sets out the broad nature of the key outstanding matters resolved during the conferences, records the undertakings made by the unions and the Company as part of the in principle agreement, and includes general observations about both the outcome achieved and the alternative path of continued escalation.
A copy of the Recommendation is available here.
As members know, by the time the parties attended the Fair Work Commission, a significant amount of work had already been done over many months of bargaining. A large number of issues had been progressed and agreed through direct negotiations before the conciliation process even began.
The matters that remained outstanding and were ultimately resolved through conciliation included:
- salary levels and transition to the new salary structure;
- changes sought by Jetstar to multi-day re-assignment rules;
- the introduction of a roster stability payment;
- duty travel provisions; and
- the introduction of a new training appendix.
Following extensive discussions across the two conferences, agreement was reached on each of those matters.
The purpose of this update is to set out the key terms of the in-principle agreement reached between the Unions and the Company. This includes:
- improvements and concessions that had already been agreed during bargaining; and
- improvements and concessions arising from the outstanding matters resolved at the conciliation conferences.
It is important that members consider the in-principle agreement in the context of the overall package, and not solely by reference to the matters that were the subject of the conciliation conferences.
Viewed as a whole, the package represents a meaningful step forward and delivers an extensive range of gains across remuneration, lifestyle and roster flexibility.
The Package
Details of each of the key improvements and concessions that form part of the overall package are outlined here.
Protected Action Ballot Result
The protected action ballot closed on Friday 27 March. We can confirm that approximately 93% of AFAP members participated in the ballot, and that more than 50% of those participating voted in favour of each proposed action.
While the support for industrial action was slightly less than the protected action ballot conducted at Jetstar in 2019, and lower than the level of support we would ordinarily expect from a pilot group, a clear majority of participating members nonetheless voted in favour of protected industrial action.
Under the Fair Work Act, the AFAP now has up to 60 days to notify any protected industrial action, should that become necessary in the event the proposed agreement is voted down by the pilot group. However, we note the undertaking given by all unions as part of the in principle agreement that no protected industrial action will be notified before the proposed agreement has been put to a vote of the pilot group.
The ballot has formed an important part of the broader bargaining process that ultimately helped bring the parties to conciliation and secure the in principle agreement now reached.
Undertakings and Observations made as part of the in-principle agreement
It is important to highlight that as part of the in principle agreement:
- each union has agreed that it will endorse and recommend the agreement to members;
- each union has undertaken not to notify protected industrial action before the proposed agreement has been put to a vote of the pilot group
- Jetstar has undertaken that it will not resile from the in principle agreement before it is put to employees for approval.
These undertakings are significant and are formally captured in the Commissioner’s Recommendation. They provide stability and certainty around the process from here and reflect the seriousness of the commitment made by all parties to finalise this agreement, notwithstanding how global geopolitical events may evolve over the next couple of months.
The Commissioner also expressly noted in the Recommendation that the agreement reflects:
“a sensible compromise position reached by the parties to this negotiation to provide significant improvement in the terms and conditions of the employment of Jetstar pilots while maintaining Jetstar’s financial viability and competitive position.”
He further observed that the alternative path was the continuation of the dispute and possible protected industrial action, which would likely have resulted in disruption and financial loss for both Jetstar and pilots. In that context, the Commissioner stated that, given the significant improvements contained in the package and the endorsement of all parties, the agreement should be approved by pilots when it is put to a vote.
That is an important observation and one that reinforces this is not simply an agreement reached for the sake of resolution, but an outcome that delivers genuine value and stands up as a worthwhile package when considered against the realistic alternatives.
What happens next
The next step is for the parties to continue the drafting process. This will involve further discussions and confirmation of a number of other matters of a more incidental nature, and the settling of the final written form of the proposed agreement.
As with all enterprise bargaining, nothing is finally agreed until everything is agreed and reduced into a complete draft document.
We are meeting with Jetstar tomorrow (Wednesday 1st April) to progress those discussions and the drafting process, and to determine an indicative timeline for when drafting will be completed and the final proposed agreement can be put to the pilot group for a vote.
When that occurs, the AFAP, AIPA and TWU will each be recommending that pilots vote in favour of the agreement.
We acknowledge that this outcome involves compromise. That is the nature of any negotiated agreement, particularly one reached after a long bargaining process involving multiple parties and competing interests. However, this is not simply about measuring who moved furthest from their original claims or positions. It is about the overall package, the improvements secured, the commitments given, and the realities of the alternative path.
Having regard to all of those matters, the AFAP Negotiating Team, together with the broader JPF Committee, is satisfied that the in-principle agreement reached represents a strong, fair and worthwhile outcome for Jetstar pilots, and one that we, as your pilot representatives, are confident in recommending to members.
As always, we will ensure members are fully informed when the final proposed agreement is put to a vote, including the uncertainties and potential risks associated with voting no.
If you have any questions, your pilot representatives and AFAP industrial officers Deanna Cain, Pat Larkins or Andrew Molnar are available to assist via jetstar@afap.org.au or call (03) 9928 5737.
Members can also engage constructively with AFAP pilot representatives and industrial staff via the members-only AFAP Telegram forum here.
Regards,
AFAP Jetstar Negotiating Team
Chris Gibson, Dominic Corcoran, Daniel Blakemore, Ben Bollen, Jake Gainger and Paul Hogan