AFAP AIC Update - Qatar Secondment
Following several consultation meetings between the AIC with Virgin regarding the Qatar secondment, pilots will have received the comprehensive FAQs earlier this week.
The AFAP provide the following further information to inform pilots decision making as to whether the secondment is right in your circumstances.
Priority for Wide Body Positions
As part of the EA21 negotiations, the AFAP representative negotiated the following clause (which was rolled over in the current EA24):
Virgin Australia will provide Pilots access to positions in VARA (subject to the terms of the enterprise agreement covering VARA Pilots) or any other Group Operations added after the commencement of this Agreement (subject to meeting any eligibility requirements) in accordance with the process set out in [the Narrow Body Agreement] and consistent with clause 75.
The clause above requires that GDOJ and the other career progression requirements in the Narrow Body EA are applied to ensure access to new operations for VA Group pilots.
The AFAP has also confirmed as part of the Qatar secondment, that while part of Virgin’s support for secondments is to build future capability for a VA Group wide body operation, positions in a future wide body operation will be as per the Narrow Body Agreement.
As per our ACCC submission, the AFAP support the Qatar wet lease as a temporary mechanism through which Virgin can demonstrate the business case for operating its own wide body aircraft in the future. We will be consulting with Virgin at regular intervals to receive updates on the progress of the business case for insourcing this flying onto Virgin metal.
Taxation
Pilots will have now received general tax advice from Deloitte to Virgin regarding the secondments. The AFAP does not provide individual tax advice, and any pilot applying for the Qatar secondment should receive specialist taxation advice based on their own personal circumstance prior to accepting the position. This is because depending on a pilot’s personal circumstances, Australia can apply income tax on any tax free income earned in Doha.
LWOP from Virgin
The AFAP also want to highlight the importance of the secondment being Leave Without Pay (LWOP) from Virgin. While Virgin has indicated it may consider an early return from Qatar in exceptional circumstances, any return prior to the end of the 3 year secondment is solely at Virgin’s discretion.
Further we note that even if Virgin agree to allow a pilot to return early the bond of US$50,000 would still apply.
Eligibility to Bid for New Positions During the Secondment
The FAQs were unclear in relation to the rights for secondees to bid during the secondment. Under the EA (see clause 57.4), a pilot on LWOP can only bid for positions in a bid import that is within 6 months of their return date. Further pilots on LWOP can only be awarded positions where the training commences after their return date.
This would allow for a successful base transfer bid, however if a pilot has a bid in for a command upgrade and the training is scheduled prior to their return then the secondee is ineligible for this position.
Loss of License Insurance
While we note that Qatar offers loss of license insurance (self-insured by Qatar Airways), the MBF provide ongoing loss of licence coverage for AFAP overseas member.
AFAP Overseas Membership
Pilots will be able to update to an AFAP overseas member at the commencement of their employment with Qatar, and this is for a nominal annual fee (Captain $330 and First Officer $165).
As an overseas member pilots on secondment will not have access to industrial representation as the AFAP cannot represent members while in Qatar, but they will still maintain access to the MBF. This allows a pilot to maintain their joining age for the MBF on return to Australia and to ensure they have continuous membership for access to refund of contributions of up to $70,000 after you exit the fund with 20 years+ continuous membership.
Members can contact the AFAP admin team to convert to overseas membership and advise of the start date of LWOP to
membership@afap.org.au.
Maintaining MBF Membership while Overseas
AFAP overseas members who joined the MBF as an Australian Citizen, may remain members as long as they renew their membership by May 31 of each year. It is the personal responsibility of each member to ensure their online renewal is submitted to the Australian Air Pilots MBF by the due date, 31 May of each year or cover may be cancelled.
It is essential to advise the MBF administration team (
membership@aapmbf.com.au or via phone 03 9928 4500) prior to leaving the country, to update your contact details and verify your email address, as it is vital for completing the yearly membership renewal.
Please contact the MBF administration team to confirm cover whilst overseas along with details of claiming while overseas.
Questions
Should you have any questions regarding the above, please feel free to contact your AFAP AIC representatives directly, or AFAP legal industrial team of Senior Legal/ Industrial Officer Patrick Larkins (
patrick@afap.org.au) or AFAP Senior Legal/ Industrial Officer Deanna Cain (
deanna@afap.org.au) at the AFAP dedicated AIC email address
virginaic@afap.org.au, or alternatively by posting on the VPF Forum (
https://afapvpf.discussioncommunity.com/) or by calling the AFAP office on (03) 9928 5737.
AFAP AIC Representatives
First Officer Steve Hungerford - Chair
Captain Brad Wilson - Vice-Chair
Captain Mark Bannister - HOTAC