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We are writing to provide an update specific to Rex Regional (Saab) members, as a number of issues have arisen since the company entered Voluntary Administration. Whilst it has been pleasing to see that the Administrators have been quick to address the issues once they are made aware of them, and appear to be committed to ensuring the regional operation runs as smoothly as possible, we felt it was worth highlighting a few issues to members:
ACCESS TO ACCOMMODATION AND TRANSPORT
The AFAP had received reports that some hotels have requested crew provide bonds, deposits or pre-payment via personal funds prior to checking them in. The Regional Express Pilots’ Agreement 2022, at clause 61 is clear that when a Pilot in the course of their employment is absent on layover from their base, they will be provided with appropriate accommodation. In providing the accommodation, Rex is responsible for all costs associated with the provision of the room itself. The only responsibility of Pilots is to cover any room service, meals or breakages incurred.
Further, there have been sporadic reports of Cabcharge, Uber and crew car fuel accounts also not working. Clause 63 also places the onus for all costs associated with the provision of transport to and from the airport/accommodation on Rex.
In both cases, Pilots do not have any obligation to pay for these services personally. Despite an unforeseen hiccup in supplier payment processing, the Administrators have indicated that they will work to ensure that both these scenarios are rectified urgently. If a Pilot encounters restricted access to either accommodation or transport (or both), we advise the following:
- Contact the Network Operations Centre (NOC) in the first instance, under normal guidelines;
- If an unsatisfactory answer is received, contact the Administrators directly at rex.employees@au.ey.com or contact 1800 709 077.
If Pilots are concerned that they may face one or both of the above scenarios, and the NOC won’t be available to sort out the issue (e.g. late arrival into an out-port), contact the hotel directly. If the accommodation provider indicates anything other than you will be checked in on arrival with no requirement to personally provide payment, contact the NOC and delay your departure until you have that assurance, from the accommodation provider.
In the event you choose to make payment with your own means, ensure you request a receipt as proof of payment. We would also recommend you email EY on the same day about the expense (rex.employees@au.ey.com) and CC AFAP Senior Industrial Officers James Mattner (james@afap.org.au) and Jared Marks (jared@afap.org.au) into the email. This will permit the AFAP to precisely track expenses daily with solid evidence if follow-up with EY is required.
It is understandable that some accommodation providers might be reluctant to honour existing arrangements, particularly if there are significant outstanding payments. Pilots may notice changes to accommodation providers; however, the Rex Council expects these changes to still occur in accordance with normal EA processes, and will be required to meet minimum standards. Where the Rex Council have concerns about a proposed hotel (e.g. access to food options beyond the hotel restaurant), there may be time-limited interim approval given, to ensure accommodation is available. The Rex Council will not be approving accommodation that is below standards for room quality. Whilst we request some flexibility from Pilots during this period, specific issues regarding accommodation should continue to be reported in the normal manner (General SMS) and to a Rex Council or RexPC member.
REIMBURSEMENT OF EXPENSES
Notwithstanding the above, the Administrators have made it clear that expenses personally incurred by Pilots, where a service required under the EA is not available, will be reimbursed. We would generally discourage Members from personally paying for services as the default response, and instead seek rectification via the NOC. If, however, that is the only option (e.g. NOC not available), the Administrators have given their assurance of reimbursement.
On Monday 19th, the company advised via NOTAC that the Administrators are looking into a special pay run for expenses only (i.e. not allowances). Pilots with outstanding expenses should urgently submit these via the e-claims system to ensure they are paid in the event this is possible. All details are the same as if you are submitting an allowance claim (e.g. meals, extensions or casual days), with the following exceptions:
- Select “General Expense” in the nature of claim dropdown box
- Upload a scan/photo of the receipt (this can only be done after clicking “add to cart”
- GST Included is likely to need selecting, however you should check your receipt
ACCRUAL AND PAYMENT OF EA ALLOWANCES
Some confusion arose with a significant number of EA allowance claims (including some previously approved) being rejected, through the e-claims system, with rejection comments referencing an EY FAQ document. The Administrators have indicated they understand the EA allowance system, however a significant number of claims with accrual dates greater than a year ago had been received. Nevertheless, the actions taken by those who re-processed all pre-administration claims to be rejected, had not been directed by the Administrators.
The Administrators have advised that they have agreed to pay any legitimate allowance claims incurred from 15th July 2024 onwards but will need to ascertain the volume and total of claims incurred prior to that date, before they are able to recommend a viable solution for the latter. Crew should therefore:
- Continue submitting (or resubmit, if rejected as mentioned above) any allowances incurred from 15th July 2024 onwards to e-claims, in the normal manner;
- Submit any allowances incurred prior to the 15th July 2024 to e-claims as a separate claim, by 5pm on Wednesday 21st August 2024.
Due to technical limitations in the e-claims system, any claims with a mix of pre and post 15th July 2024 cannot be split and will be rejected. If this occurs, you should separate your claims and then resubmit. It is important to note that claims submitted under item 2 will not be immediately paid until a viable solution is agreed. The Administrators are investigating the possibility of a special pay run to remit allowances under item 1, that have not yet been paid.
The Administrators have also advised that allowances (e.g. casual days, extensions, meal claims, days in lieu) incurred during the administration period will be honoured and paid in line with normal processes.
CADET LOAN REPAYMENTS
The Administrators have advised that they anticipate cadet loan repayments to continue as normal.
Any Pilot with a specific concern related to cadet loan repayments should contact EY at rex.employees@au.ey.com or 1800 709 077.
SUPERANNUATION
The Administrators have advised:
- Superannuation has been paid up to and including 30th June 2024;
- Superannuation accrued on wages paid during the administration period will be paid in the ordinary course;
- Superannuation accrued on wages remitted during July 2024 is currently outstanding. The Administrators will provide a further update once they have further information.
VOLUNTARY ADMINISTRATION PROCESS
The Administrators have advised they are unable to predict the exact duration that Regional Express Holdings Ltd (Regional/Saab Operation) will remain in administration, however they anticipate there will be a major announcement about a resolution in approximately 4-8 weeks.
ANNUAL LEAVE
The Administrators have advised all annual leave processes should continue in the same manner as prior to the Voluntary Administration period, including moving of annual leave.
Any requests for changes to the existing annual leave roster should be addressed to Crew Resources Management.
Concerns should be addressed to EY at rex.employees@au.ey.com or 1800 709 077.
EY EMPLOYEE FAQ DOCUMENT
It has become clear that EY are updating their provided “Employee FAQ” document, but not sending it out via email as they have previously done.
Updated versions of the document can be found in the EY Creditors Portal under the “Documents” tab, with changes since the last version in blue. We encourage Pilots to regularly check the portal for updates.
If you do not have access to the portal, please contact the Administrators at rex.employees@au.ey.com or 1800 709 077.
AAPMBF LOSS OF LICENCE INSURANCE
Regional Members should have been notified by email late on Monday that the MBF is now in receipt of the 2024-2025 employer contribution.
You should check your details by:
If your statement is showing an unexpected outstanding balance or you have made a payment and now require a refund, please contact the AAPMBF by email membership@aapmbf.com.au or phone (03) 9928 4500.
As per the MBF update on Monday (19/8), Regional (Saab) Pilots are no longer required to complete the Member Update form previously requested by the AAPMBF on Monday 12th August.
SAFETY (FOOD, FATIGUE, ETC.)
The AFAP & Rex Council actively supports the calls by the Administrators and Rex Senior Management to ensure safety is not compromised due to the entry into Voluntary Administration. We would actively encourage all crew to look out for each other and be particularly vigilant during this difficult time for all Rex employees, but especially those who work in safety-sensitive roles, where distractions have the potential to become active threats.
Pilots should consider their mental and alertness states in the same way as assessing illness when presenting as fit-for-duty, but also give due consideration to other less obvious safety related concerns such as fatigue and access to sustenance. Whilst many Pilots might feel a need to go above and beyond to help the company, a significant safety-related event during the Administration period may have the opposite effect. Under these circumstances, the guidance from Flight Operations Management is to lean towards being conservative in any risk or safety assessments. If you feel you are not safe to fly, stand yourself down.
The Administrators have also indicated that there may be changes to schedules and routes as they move the business back towards profitable and “sale-ready”. This may have the unintended consequence of producing fatiguing duties. As Rex transitions the FRMS from trial to CASA approval, fatigue reports become critical to its operation. Please also continue to submit fatigue, safety and general hazard reports as required.
Flight Operations Management have also indicated they intend to undertake safety related surveillance and assurance activities (including jumpseat rides). Crew should take such opportunities to discuss any operational concerns with those tasked with surveillance.
There is no harm in requesting time to consider a request from Crewing/Ops before giving an answer, to ensure you have properly considered that request. Any concerns around pressure to undertake unsafe duties/tasks, should be immediately reported to Flight Operations Management. If the response is inadequate, please contact the AFAP Industrial Officers.
The general rule for Saab pilots during the Administration period is that your job and all associated responsibilities continue as normal: if you wouldn’t have done something prior to Administration, don’t do it just because the airline is currently in Administration. The GMFO has clearly stated that the company wants us to continue erring on the safe side – even if it causes a disruption – rather than to push through for the sake of making the airline look better to prospective buyers, and risk causing an incident that damages Rex’s prospects of recovery.
QUESTIONS?
Any questions related to the Administration process should be addressed to the Administrators (EY) via rex.employees@au.ey.com or 1800 709 077.
Operational questions should continue to be addressed to either your applicable FOM, or other Flight Operations Managers in the normal manner.
All other questions can be addressed to a Rex Council Member or, alternatively, AFAP Senior Industrial Officers James Mattner (james@afap.org.au) or Jared Marks (jared@afap.org.au).