AFAP Narrow Body EA Update No 27
12 DDO Position and Opt-in Highline
Since our last Update, the AFAP has met with Virgin and the TWU on two further occasions to continue negotiations following the no vote.
AFAP position
As per our previous Update, the focus of the meetings for the AFAP has been on negotiating a package that includes retention of the 12 DDOs in line with the feedback from our survey post no-vote.
In addition, the AFAP and TWU jointly put a REM package forward that rolled the DTA and retention payments into base salary (as we had proposed during the pause prior to the no vote) with a 69 hour MCG.
We have reinforced that our survey data demonstrates the common element across both “yes” and “no” voters is retention of 12 DDOs and an improved and simplified remuneration package. From the AFAP perspective these are the core items to be resolved to achieve a yes vote.
Other issues with the rejected offer have been discussed such as annual leave, infringement payments, standby and part-time. However the initial discussions have been focused on resolving the core elements of base salary, hourly rates, minimum days off and MCG.
Virgin Response
Virgin’s response was to present a 12 DDO package that reduced significantly the base salary, hourly rates and MCG/ credit hour trigger. While it is open to DTA being rolled into base salary, it wants to retain a retention payment as part of its pay structure.
Virgin stated categorically that the direction from the Executive Leadership Team (ELT) is the cost envelope is to remain the same. As such, Virgin’s proposed package for 12 DDOs is the same overall cost as the first EA package but redistributed across more pilots.
Virgin advised that the lower base salary/MCG on offer for a 12 DDO package is predicated on the additional headcount it will require to operate the higher block hours it is targeting in peak periods. In simple terms, by having to roster 12 DDOs in these peak roster periods, Virgin has less duty days per pilot and needs to hire more pilots.
To mitigate this additional headcount in off peak rosters where Virgin targets less block hours, Virgin proposes lowering the MCG which results in pilots receiving a lower guaranteed base salary.
AFAP Response
The AFAP responded and advised that Virgin’s initial package for 12 DDOs was unacceptable and well outside the bargaining arena. Virgin is reviewing its position prior to next week’s meeting.
We have also written requesting a breakdown of the headcount data it is using to underpin its costing of the proposal. This will allow us to understand how having all pilots on a 12 DDO package impacts headcount and to enable you to fully consider this position.
TWU Highline Proposal
The TWU has separately proposed an opt-in highline system, whereby all pilots have a baseline of 12 DDOs/ 69 MCG but can opt in to two highline roster options:
- HL1 - 11 DDOs in 6 RPs (12 DDOs in 7 RPs), 74 MCG; or
- HL2 - 10 DDOs in 6 RPs (12 DDOs in 7 RPs), 79 MCG
Pilots would receive a higher MCG/ base salary for each of the above HL options to create an incentive to roster higher hours to pilots on highline.
The AFAP has supported the TWU proposal, on the basis it is an opt-in model on top of the proposed core package with 12 DDOs/ 69MCG.
Virgin has presented a number of modelling scenarios in response to the TWU’s highline proposal. These scenarios identify the impact on the MCG and guaranteed base salary Virgin could offer based on various percentages of each Resource Group opting-in for 11/12 DDOs (with the remainder on 12 DDOs per RP). Virgin also presented modelling scenarios which reduced leave to a 4% minimum which was flat out rejected by the AFAP.
From these discussions, it was clear the core issue is that Virgin needs to be assured of the percentage of pilots that opt in so it can have certainty of its headcount. Both the AFAP and TWU will not support a model that is not opt-in.
Further even if it can be assured of the percentage that opt-in, Virgin’s position is that any model of highline reduces the package from that offered (and voted down) for 11/12 days off again as it increases headcount. Under a Highline system instead of increasing MCG it has proposed lowering it depending on the percentage of pilots who opt-in.
As per the above, we have similarly sought further headcount data underpinning the highline proposals.
Virgin Position
Virgin has maintained that its preference would be to return to the previous offer with 11/12 days off as this maximises the guaranteed income for pilots. Virgin wants to identify areas with the parties to improve the package without impacting the overall costs. It believes there are a number of areas that can be addressed around part-time, standby and simplification of the REM package within this approach.
Virgin believes this is the best approach to have a document out to vote again as quickly as possible,
The AFAP will continue to be guided by members’ wishes which at this stage is to negotiate a package retaining 12 DDOs.
Next Steps
We meet again next week in which Virgin will provide a response to our 12 DDO position and we will review the headcount data underpinning its costings.
Questions
For any general enquiries regarding this update or other matters at Virgin please contact the elected representatives directly, or AFAP legal industrial team of Senior Legal/ Industrial Officer Pat Larkins (patrick@afap.org.au) and AFAP Senior Legal/ Industrial Officer Deanna Cain (deanna@afap.org.au), or alternatively post on the AFAP Forum (https://afapvpf.discussioncommunity.com) 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
Captain Ben Raby
Captain Brad Wilson
Captain Mark Bannister