Qantas

Network EA - In Principle Agreement Summary

Network EA Update – In Principle Agreement Reached after FWC Conferences
Thank you to all the AFAP members who have supported us throughout the process. This update is a realistic snapshot of where we currently sit in the process. Hopefully some of this information presented will help guide us towards an outcome for this EA.

Last week we held intensive discussions with Network management and the other bargaining representatives in the Fair Work Commission (FWC) in Perth. These conferences were held in accordance with the earlier recommendations of Deputy President Binet of the FWC. Attending from the AFAP were your AFAP Network pilot representatives Stephen Maughan, Cameron Mapley and Ben Walmsley along with AFAP Executive Director, Simon Lutton.

As per recent joint communications we can confirm that after four days in the FWC, the parties eventually reached an in principle agreement on the proposed Network Aviation Pilots Enterprise Agreement 2023. The full document is currently being finalised for release, however, we thought it timely to provide you with a snapshot of the changes to the proposed agreement.

To provide some context, the starting point for discussions and the subsequent drafting and changes to clauses was from the previous document which was released by the company in early October and subsequently voted down by greater than 90%. We viewed this as a positive approach in that we were discussing changes from the earlier proposed agreement and not the current expired agreement. The new document was primarily controlled by the Deputy President and her Associate and amended in joint sessions of the bargaining representatives. This was an unusually “hands on” approach from the FWC and we thank the Deputy President for her assistance. The document was literally re-written and expanded from start to finish under the eyes of the FWC.

Prior to this, pilot feedback mandated us to request significant improvements in the proposal, including remuneration, additional roster protections and lifestyle clauses, all set out in the ‘AFAP Revised Log of Claims’. We did not achieve everything we set out for in this new proposal. We did achieve improvements to the previous proposal, enough for us to reach proposal endorsement. We will explain why after providing a summary of the changes and improvements to the earlier proposed agreement.

The most significant improvement to the previous agreement is a new and additional $7,500 allowance for all Captains and $4,875 allowance (65% of the Captain rate) for all First Officers. This allowance, most likely to be called a “Network FIFO Operation Allowance” or similar, is payable fortnightly, will attract superannuation and is indexed to the wage increases for the life of the agreement.

Other changes and improvements to the previous proposal are summarised below in clause order. Please note this is not an exhaustive list. Pilots should await the final document and explanatory information which will be released for the mandatory seven-day access period before a vote in order to determine all changes. A summary of the changes to the previous proposal is as follows:

• Nominal expiry on 14 October 2027 with a commitment to commence bargaining 6 months before this date.
• Inclusion of a new definitions section in the Agreement.
• An improved and strengthened consultation clause, including specific consultation on the introduction of a new aircraft type.
• Inclusion of a provision that a pilot can require all verbal instructions be confirmed in writing.
• New 8 week notice of termination obligation.
• Confirmation that any involuntary redundancies will be by reverse date of join (after an expression of interest in voluntary redundancy process).
• Confirmation that any deductions from pay (including recovering any overpayments) will be by agreement with the pilot.
• Inclusion of a documented selection and promotion process
• Confirmation of reverse date of join to determine any forced transfers or temporary transfers.
• A new/improved accommodation selection process.
• A maximum four day/three night trip length for pilots performing flight duties and new maximum trip lengths for pilots receiving and pilots delivering simulator training.
• Three year fleet freezes.
• Salary table as per the previous proposal with an additional 3% increase payable on 15 October 2026.
• New FIFO Operation Allowance of $7,500 for Captains and $4875 for First Officers indexed over the life of the agreement, paid fortnightly, with superannuation payable (as detailed above).
• New type specification for the salary tables. The previous proposal listed Captain and First Officer “A319/A320” and Captain and First Officer “excluding A319/A320”. The new salary tables now specify the salary for “F100/E190” and “A319/320”. This means that a new salary would need to be agreed for any other aircraft type. While the salary is agreed the new consultation clause on the introduction of a new aircraft type would still apply to other arrangements if an E190 was introduced.
• New wording around the URTI clause that means that the company may require a medical certificate in place of the previous clause which stipulated that a pilot was always required to provide a certificate to access URTI leave.
• A change from a minimum of 9 days off with 3 paired days off per 28 day roster period to a minimum of 9 days off with 4 paired days off per 28 day roster. The requirement of a minimum of one weekend per 28 day roster period remains.
• A new cap of 7 reserve periods in a roster period when previously no cap on the amount of reserves was provided.

This proposal represents greater value than the previously offered and rejected EA. After careful consideration, the improvements achieved are sufficient for us to endorse the proposed agreement, giving the pilots the option for a vote at this time.

To allow AFAP members to vote in full knowledge of the potential of either outcome, we have detailed below the possible alternatives from either a YES or NO vote. We believe we have succeeded in leveraging Network Aviation to the limit of what they are prepared to agree to. With the benefit of FWC presence and influence, no further concessions or improvements were going to be offered by Network/Qantas. We believe this current proposal now represents the ‘end of the line’ for conventional negotiations. This left the only other available option as resuming protected industrial action (PIA) before a likely intractable bargaining determination (IBD).

We know the drive for an improved offer is enormous and the willingness to act is without question. Pilots have spoken loud and clear that they are willing to engage in PIA for the greater good and utilize all aspects of the Fair Work Act (FWA). The AFAP reiterates that we are always prepared to utilize all aspects of the FWA as directed by its members. In line with this consideration is the possible outcome as the result of an IBD. The risks and unknowns of pursuing an IBD strategy were too high not to endorse this improved proposal and make this current proposal available for acceptance. In endorsing this vote, we acknowledge pilots should have a choice at this point in time, and should have the opportunity to decide without decisions being made for them.

Whilst the AFAP has carefully considered this IBD pathway, it is not something the union and therefore the pilots can take lightly due to the following risk factors;

• How long it would take for the FWC to commence, and complete, an IBD is unknown.
• What would happen to any backpay is unknown.
• The eventual result of an IBD is unknown.
• Specialist legal advice indicates it would be naïve to assume the FWC would award a better result than the proposed agreement.
• If a better deal is possible under an IBD, how much better is unknown.
• It remains unknown if the advancements and written limitations made in the current proposal would remain.

One thing is clear, the currently proposed agreement would potentially not be the starting point for any IBD. This has been made clear by an order of the FWC that if the proposed agreement is voted down, neither party can rely on it or the discussion held in conference in any potential IBD. This of course has benefits and risks for both parties.

Had Qantas IR maintained its previous position and refused to improve the previous agreement (just “reshuffle the same deck”) we would have been left with no choice but to pursue more PIA and an IBD. Clearly this agreement has been improved and we believe the benefits vs risks warrants a vote.

We completely understand that not all pilots will share our view on whether the improvements are sufficient. This approaching vote represents a genuinely democratic process on the outcome of this EA. Do we accept the deal or do we ‘roll the dice’? Your negotiating team asks you to carefully consider the following options;

• Accepting this proposal means acknowledging the improvements made. A proposal that can be used to springboard growth in future EAs and represents marked improvement in every aspect of the current EA. This proposal gives us greater options and protections moving forward.
• Rejecting this proposal means your AFAP team will likely engage in new IBD legislation with an unknown end date and an unknown outcome. Whilst there are no guarantees, if AFAP members direct accordingly, this is the direction we will pursue.

Regrettably, one point to mention is the indications from the company of their intent to remove the $5000 (2023) and the previous $2000 (2018) bonuses upon signing. We did explain how detrimental this would be in securing a YES vote from the flight crew as it essentially nullifies the value of the new FIFO Operation allowance almost entirely (at least in the first year). Additionally, it would suggest “tone deafness” to a pilot body who demonstrated a categorical 90% rejection of an inferior previous offer which included the bonuses. This also happened at Jetstar and the AFAP is currently exploring legal avenues to recover these bonuses. Qantas is aware of this and the outcome in this case would also likely apply to Network pilots.

Regardless of your position on the proposed agreement, we want to express our appreciation for the solidarity which all Network AFAP members have shown over this campaign. This result would never have been achieved without your support.

In unity,

Stephen Maughan: smaughan@iinet.net.au
Cameron Mapley: Mappers@gmail.com
Ben Walmsley: ben.walms@gmail.com
In addition, Chris Aikens (AFAP Senior Industrial Officer) can be contacted on chris@afap.org.au and Simon Lutton (AFAP Executive Director) can be contacted on simon@afap.org.au.