Bain’s on the back foot, says Virgin Australia unions

Virgin Australia unions have told members they have new owners Bain Capital on the back foot, after calling a halt to pay talks.

Virgin Australia aircraft parked at Brisbane Airport as the airline fights its way out of administration. Picture: AFP

Virgin Australia unions have told their members they have Bain Capital “on the back foot” following meetings to discuss the resumption of enterprise bargaining negotiations.

The Transport Workers Union and a range of other ACTU-­affiliated associations suspended talks over the shock axing of chief executive Paul Scurrah in favour of former Jetstar boss Jayne Hrdlicka.

Late on Wednesday, unions were awaiting Bain’s response to their demand for a written ­assurance about the jobs of 6000 ­employees following the shift in direction for the airline.

“At yesterday’s meeting it was evident that the TWU’s decision to suspend negotiations backed by your delegates (and now with other unions following our lead), has put Bain on the back foot,” said a union message to members.

“We believe they now know they need to make commitments and we are hoping it puts us all in a better bargaining position.”

In a further sign of hostility developing between the airline’s new owners and its employees, the Australian Federation of Air Pilots told members no business case had been presented to justify deep cuts to pay and conditions.

A report on new work agreements dated October 8 said Bain had not been collaborative, and the cuts proposed seemed to be “driven by exploiting pilots in vulnerable circumstances”.

The federation suggested members were being fed “corporate spin that enterprise agreement changes and reduced conditions were necessary in order to be competitive … The company offer is incapable of being supported by the pilots’ group.”

Key concerns included no protection against excessive duty hours, reduced days off and a reduced base salary for captains of $228,735, down from $240,000.

The federation noted it was prepared to discuss a lower base salary and lower overtime trigger, and a flat hourly rate for all flight-credit hours.

AFAP senior industrial officer Deanna Cain said since the report, negotiations had progressed significantly and Virgin had provided a revised offer “containing some improvements”.

“We are actively engaged in ongoing positive and constructive discussions with Virgin and are committed to reaching a mutually beneficial agreement,” said Ms Cain.