The Fair Work Commission (FWC) has urged Virgin Australia pilots to accept a new contract that will see salaries increase by 21% over three years.
The Fair Work Commission was asked to step in after Virgin Australia pilots represented by the Transport Workers Union voted against a proposed agreement in July 2024.
The new deal “significantly restores pay and conditions which were decimated during the airline’s administration process” when US private equity firm Bain Capital took control of the airline in 2020, according to a statement from the TWU on September 16, 2024.
According to The Australian, which has seen FWC figures, Captains at Virgin Australia are being offered an AUD 42,000 ($28,200) pay rise under the terms of the new contract.
Both Captains and First Officers are being offered a 15% pay increase in the first year, followed by 3% rises in the second and third year.
As part of negotiations, pilots would lose six designated days off (DDOs) a year thus reducing them from 156 to 150 – this is in addition to six weeks of contracted annual leave.
“The consequences of voting this proposal down will create further uncertainty and prevent substantive pay increases to all employees. I do not foresee that taking industrial action or prolonging the bargaining will result in a better proposal than what is currently proposed in this recommendation,” said FWC Deputy President, Nicholas Lake.
Virgin Australia said that the new conditions will be put to a vote in October 2024.
“TWU Virgin pilots led the charge on a strong no vote as the airline continued to present an offer that failed to acknowledge the sacrifices they made during the pandemic. There is significant work Virgin still must do around rostering and fatigue issues,” TWU National Secretary, Michael Kaine, said.
He added: “With Virgin soaring back to profit and a new CEO waiting in the wings, it’s time for Virgin to get back to the fundamental business of listening to its people and rebuilding morale.”
