Virgin Narrow Body EA Update #4 - Company Updated REM Proposal
As per our summary in the last AIC update, the Company cancelled the scheduled EA meetings on both 25 and 26 October where they were to respond to our pay position, having considered our blunt feedback from the meeting in early October in which we:
- outlined the shortcomings of Virgin’s High-Line/ Low-Line proposal with regards to both remuneration level and rostering complexity;
- rejected the Virgin Wages Policy as inappropriate in the current economic climate; and
- reinforced that our position is the REM package as outlined in our previous Update.
Virgin had cancelled the meetings to have an opportunity for the ELT to approve an updated REM position for our meeting last week.
We met again last Thursday and present from the Company was Alex Scamps (General Manager (Flight Operations & Chief Pilot), Evert Meyer (General Manager, Strategy and Planning), Jo Glynn (General Manager, Workplace Relations), Tessa Merrick (Head of Workplace Relations), Chris Schomberg (Senior Business Partner), Adam Wall (Manager, Workforce Planning Strategy), Kieren Wragge (Manager, Workforce Planning Flight Crew), Nev Spencer (Deputy Chief Pilot (Acting)), Clair Chevalier (Senior Manager, Strategy and Planning), Ash Ford (Manager, Crew Tracking), Kylie Laukis Clements (Specialist, Flight Crew Tracking), and David Tay (Senior Manager, Strategy and Planning).
Representing the AFAP were First Officer Steve Hungerford (VPF Chair), First Officer Shaun Rudduck (VPF Vice-Chair), Captain Ben Raby, Captain Brad Wilson, Deanna Cain (AFAP Senior Legal/ Industrial Officer) and Patrick Larkins (AFAP Senior Legal/ Industrial Officer).
Summary of the Updated Company Proposal
The Company presented the following updated proposal:
Check and Training Pilots
The AFAP asked for a response on our REM proposal for Check and Training Pilots. The Company response was it wanted to resolve the core package for line Pilots before putting forward a pay proposal for Check and Training Pilots.
Work Rules
Virgin provided further detail on the work rule changes it was seeking, to improve productivity and remove restrictions on the earning potential of pilots. The primary changes being sought were:
FDPs
Virgin proposed moving to the CAO48.1 Appendix 2 table (this is the same table that is in EA21). The below table compares the current FDP table to the proposed CAO48.1 table (current FDP has had the 15-minute sign off added for direct comparison).
As you can see this table provides significant additional flexibility for duties commencing between 0500-0759 that are 3 sectors and greater.
DDO buffers
The Company proposed moving to the Local Night from CAO48.1 being a period of 8 consecutive hours which includes the hours between 2200 and 0500 local time.
The Company proposed applying the following DDO buffers:
- For 1-2 DDOs – local night protection + 10 hours additional buffer
- For 3 or more DDOs – local night protection with no additional buffers
The proposal would mean around 2 DDOs a pilot could sign-off at 2200 before a DDO (rather than current 0000) and have 58 hours off, 2 hours less than current practice signing on at 0800.
For 3 DDOs a pilot would only have Local Night protection which would mean that a pilot can sign-off at 2200 and back on at 0500 providing 79 hours off (down from 84 hours under the current work rules).
Min Home Base Rest
Virgin proposed reducing the minimum home base rest to 14 hours. The Company advised this would provide improved productivity for rostering of day trips.
Early Starts
The Company stated it wanted to remove the 1500 sign-off limit that applies to day 4 and 5 after 3 consecutive early starts (regardless as to whether day 4 and 5 are an early start).
Flying Hour Limit
The Company proposed increasing the 900 hours annual flight limit to 1000 hours. The Company ruled out the possibility of either a pilot “opt-in” system or a limit based on flight hours at roster publish.
The Company advised that with 6 weeks leave and minimum days off the extension to 1000 hours would effectively be opt-in, as a pilot would need to not take any leave and work on DDOs to get over the current 900 hours.
Instead, the Company feels removing the 900 hours limit is a mechanism for allowing those pilots who want to earn more to pick up additional flying, noting that an additional 100 hours is worth $34,223 for a Captain and $22,226 for a First Officer.
Initial Feedback
The AFAP acknowledged that Virgin had taken on board feedback from the AFAP regarding the complexity of highline and lowline MCGs of 65 and 69 (along with REM benefits that applied only to highline pilots) from its previous proposal. This would have had pilots within the same Resource Groups working the same hours for different pay.
Having said that we noted that the updated proposal with a variable MCG and DDOs in a peak (69 hours and 10 DDOs) and non-peak (65 hours and 12 DDOs) effectively values work less in a peak period and seemed counter-intuitive. This is on the basis that a pilot on 69 hours on an off-peak would be paid 4 hours of productivity in contrast to a peak where this would be at the base hourly rate.
Virgin responded by stating it was recognising that pilots valued the Company purchasing upfront a higher number of hours than under the current system of a low MCG and if it was asking for a greater number of duty days it needed to guarantee more hours for that RP.
While we recognised Virgin has made a significant improvement on its previous REM proposal, the AFAP highlighted that it still falls short of the initial AFAP base salary proposal.
We also emphasised that the trade-off for pilots were areas of critical importance, being minimum days off and minimum leave during peak periods. We further advised we did not have member support from our survey for a minimum of 10 days off (even if limited to 6 peak RPs).
Further the claim for more duty days as well as reduced DDO buffers and significantly expanded FDPs would increase time at work.
To better understand the value the Company has placed on reducing to 10 DDOs in peak RPs, we have asked for Virgin to provide what its REM position would be if the days off were as per 2018 EA (min 11 in 7 RPs and 12 in 6 RPs).
Next Steps
From here the AFAP will consider the Company proposal in more detail and present a comprehensive response at our meeting next week.
As always members should contact the elected representatives directly, or alternatively post on the AFAP Forum or email virginNBEBA@afap.org.au should you have any questions or feedback regarding EA negotiations.
Alternatively, email general industrial queries to virginAIC@afap.org.au, safety and technical matters to technical@afap.org.au, and HOTAC issues/ reports to HOTAC@afap.org.au.
Regards,
AFAP 2024 EA Negotiating Team
First Officer Steve Hungerford – Chair
First Officer Shaun Rudduck – Vice-Chair
Captain Ben Raby
Captain Brad Wilson
Captain Mark Bannister
Pat Larkins – AFAP Senior Industrial/ Legal Officer
Deanna Cain – AFAP Senior Industrial/ Legal Officer