AFAP Narrow Body EA Update No 28
Virgin 12 DDO Pay Offer
The AFAP met with Virgin and the TWU this week to continue negotiations following the no vote.
Virgin pay offer – 12 DDOs
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 the no vote.
In previous meetings Virgin had made two other offers based on 12 DDOs per RP which had lower base salaries than the below. These positions were challenged and rejected by the AFAP.
In the meeting this week, Virgin provided an updated position as follows if pilots retain 12 DDOs per RP:
The above position was proposed on the basis the following changes were made to the EA:
- Annual leave – minimum of 7.5% leave per week as proposed in EA24 that was voted down; and
- Infringement payments – as proposed in EA24 that was voted down.
Consistent with the feedback provided by pilots that the pay system proposed was too complex, the above position removed the retention payment and DTA.
As we outlined in our previous Update, Virgin’s negotiators advised again that the firm 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 and hourly rates on offer for a 12 DDO package is predicated on an additional 64 pilots (32 CPTs/ 32 FOs) it will require to operate the higher block hours it is targeting in peak periods.
AFAP Response
The AFAP responded and advised that based on our feedback from pilots this package will not be accepted by a majority of pilots and we will need to share this proposal with members.
TWU Highline Proposal
As previously discussed, Virgin has presented a number of modelling scenarios in response to the TWU’s highline proposal.
The pay position for a 50% opt-in system:
*includes a 2.3% retention payment, but offer removes DTA.
The above position was proposed on the basis the following changes were made to the EA:
- Annual leave – minimum of 7.5% leave per week as proposed in EA24 that was voted down; and
- Infringement payments – as proposed in EA24 that was voted down.
Virgin stated that the above pay offer would only be made if it could guarantee 50% of pilots were on highline. It confirmed that if not enough pilots in each Resource Group opted in to the highline package then it would require a process to force pilots onto the highline package (such as selecting pilots by reverse seniority).
The TWU stated that if highline was oversubscribed (i.e. above 50%) then Virgin needed to pass on the additional benefits to pilots. Virgin agreed it would need to increase the package for highline pilots if it was oversubscribed, however it would also require the right to cap the number of pilots opting in as it would plan its headcount based on 50% on highline. Again, it would look at a system based on selecting pilots in seniority order if it wanted to cap numbers on highline.
After this discussion, the AFAP and TWU advised the system was unworkable given Virgin’s requirement to have the option to both force pilots onto highline and to cap the number of pilots on highline. Additionally, pilots opting in for 11/12 would be offered a lesser remuneration than in the voted down EA.
Virgin equally stated the complexity of this system was challenging for the business and it did not prefer it as it did not achieve the maximum income benefit for pilots.
The parties have now jointly agreed that highline was not viable and the AFAP and TWU will focus on the 12 DDO package.
Next Steps
As we previously outlined, 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.
The AFAP will continue to negotiate a package retaining 12 DDOs as this is our members’ position. Depending on the progress of discussions over the next meetings the AFAP may need to seek member direction on our next steps.
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