As per our update from December last year (available here), the Company was unable to provide its updated remuneration proposal prior to Christmas due to not having ELT approval.
On 25 January, the AFAP met with Virgin to hear Virgin’s response to our updated pay proposal that we presented on 22 November. 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), Kieren Wragge (Manager, Workforce Planning Flight Crew), Nev Spencer (Deputy Chief Pilot), Clair Chevalier (Senior Manager, Strategy and Planning), Kylie Laukis Clements (Specialist, Flight Crew Tracking), and David Tay (Senior Manager, Strategy and Planning).
Representing the AFAP were First Officer Shaun Rudduck (VPF Vice-Chair), Captain Ben Raby, Captain Brad Wilson, Captain Mark Bannister, Deanna Cain (AFAP Senior Legal/ Industrial Officer) and Patrick Larkins (AFAP Senior Legal/ Industrial Officer) (First Officer Steve Hungerford (VPF Chair) was on leave).
Company Updated Offer
The Company tabled the following updated position on remuneration:
| |
Nov 2023 |
Jan 2024 |
Base Salary |
Commencement (1 July 2024)
CPT - $270,670
FO - $175,759
3% yearly increase on the above |
Commencement (1 July 2024)
CPT - $264,353
FO - $171,830
3% yearly increase on the above |
MCG/Productivity Threshold
|
Variable MCG:
65 - 7 off peak RPs
69 - 6 peak RPs
Productivity Threshold:
In line with the MCG above |
Variable MCG:
65 - 7 off peak RPs
69 - 6 peak RPs
Productivity Threshold:
73 for each RP (base hourly rate applied for hours in between MCG and threshold. Productivity rate does not apply until 73 and above) |
DDOs |
Variable DDOs:
12 DDOs in 7 off peak RPs
10 DDOs in 6 peak RPs
(Total reduction of 12 DDOs PA) |
Variable DDOs:
12 DDOs in 7 off peak RPs
11 DDOs in 6 peak RPs
(Total reduction of 6 DDOs PA) |
Hourly Rate |
Base Hourly Rate
CPT - $311.47
FO - $202.25
Productivity Rate + 10% (above MCG):
CPT - $342.62
FO - $222.48
Increase in line with salary
|
Base Hourly Rate
CPT - $304.20
FO - $197.70
Productivity Rate + 10% (above 73 hrs):
CPT - $334.20
FO - $217.50
Increase in line with salary |
Drafts |
Min 5 credit at base hourly rate
(NB: VA has not confirmed if this is a hard credit) |
Unchanged |
Overnight Allowances |
CPTs move to ATO Table 3 ($203.80)
FOs remain on Table 2 ($186.40)
Convert to Hourly Amount (ATO / 24 hrs) & pay per hour pro-rated away from sign-on to sign-off in Home Base (ODTA) |
Remove higher allowances for CPTs (ATO Table 3)
Retain current system (ATO Table 2) |
| Credit Table |
As per 2018 EA table but with SBY credits (min 4 hours) |
Hybrid of 2018 and 2021 EA Credit Tables but VA did not provide further details |
| RIGs |
Duty RIG remains 50%
No Trip RIG |
Remove Duty RIG
No Trip RIG |
| Annual Leave |
Minimum of 7.5% (down from the current 10%) consistent with the EA21 position. |
Unchanged |
In summary the key changes from the Company’s previous offer were:
- 2.4% reduction in base salary, base hourly rate and productivity rate compared to the previous offer;
- Higher overtime threshold (even higher than 2018 EA and also higher than MCG adding complexity);
- Removal of 50% Duty RIG;
- Removal of higher ATO Table 3 for CPT overnight allowances;
- Additional work rule changes.
To calculate its base hourly rate, the Company has taken the current $280/ $182, increased this by its ‘wages policy’ of 3% and then increased again by ~5.6%. The Company position is the extra 5.6% increase is funded by work rule changes (discussed below) and reducing DDOs by 6 per year (11 in 6 peak RPs and 12 in 7 off peak RPs).
AFAP Initial Feedback
The AFAP stated that we would provide a full response in our next meeting later in February, however we took the opportunity to deliver some direct feedback.
Overall, we advised the package on offer offered no incentive for pilots to move from the current terms and conditions. In fact, when comparing to the 2018 EA final hourly rate of $266.93/ $173.51 (July 2019), the Company offer equates to slightly less than a 3% increase for each year since 2019.
Members will not find this acceptable as it falls short of the increases they deserve. Especially when the Company is also seeking work rule changes, that are effectively being sought for free.
We strongly conveyed our frustration that the Company has not listened and seems to have a distorted view of the benefits of the package on offer. The Company conceded the offer was worse than the remuneration at Jetstar yet felt that was justified because they believe the Jetstar EA is more productive.
Last year, we tabled a concise, simple pay proposal that was endorsed by members and the response from the Company has been a complex pay proposal that is worse than the current EA conditions. The AFAP reiterated that the position of pilots was not to accept a reduction in days off unless the remuneration (and in particular base salary) was acceptable. The Company offer equates to paying 4 hours at the base hourly rate in exchange for a DDO, whilst also seeking work rule efficiencies.
Based on the above the AFAP advised pilots will not be willing to part with the current minimum 12 days off per RP. For the Company to gain the DDO and the pilot to lose the choice of working that DDO, a premium must be paid.
Check and Training Pilots
The AFAP again asked for a response on our remuneration proposal for Check and Training Pilots. The Company advised it would be willing to return to a percentage system for calculating allowances however it did not provide further details.
AFAP Response on Work Rules
The Company provided further details on work rule changes it was seeking to vary or change as outlined in our November Update. At our meeting in January it also outlined a number of further changes it was seeking which included changes to additional work rules for pilots that increase flexibility for Virgin.
We advised that the pursuit of both reduced days off and changes to critical work rules was not going to be supported by the AFAP. Further we noted that the list of work rule changes being pursued includes claims that will trigger no votes in isolation as the rules are important fatigue and lifestyle protections.
We have responded in writing to these claims advising that we reject them and have provided the Company the opportunity to reconsider its position. We will update members on the work rule position once we have a response from Virgin.
Next Steps
The AFAP will be focusing on presenting a full draft document outlining changes to the EA in a number of other areas when we meet again in February. The AFAP see no reason to amend our pay position as previously advised and we will maintain our fair base pay and associated DDO position that members supported through our initial survey questions and open text responses. However we have advised Virgin that as time has passed, and the fact the Company has failed to present an appropriate remuneration package, the window of member support for this initial position is closing.
We recognise members will be angry with the revised offer and will want to see the AFAP acting on this. We note that under s.438 of the Fair Work Act an application for a protected action ballot order must not be made earlier than 30 days before the nominal expiry date of the enterprise agreement (which for this agreement is 30 May 2024).
The AFAP can only hope that the Company ceases to push ahead with its eye wateringly underwhelming remuneration position. When combined with the proposed associated reduction to pilots’ lifestyles and the domestic and international pilot labour market, the pay offer is insulting.
The Company needs to listen to the AFAP negotiating team, as we represent the far majority of Virgin pilots and will always present a majority position void of self-interest. If the Company does not want to recognise this reality, the AFAP will at the right time ask for members support to utilise our rights under the Act.
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