Job security wins over Virgin pilots in new pay deal

Virgin Australia’s 800 pilots have voted in favour of a new deal that will protect them from redundancy until the end of 2022.

Virgin Australia has struck a new pay deal with its pilots, in a significant win for the airline under new owners Bain Capital. Picture: Bloomberg

Virgin Australia’s 800 pilots have voted in favour of a new pay deal that will protect them from redundancy until the end of next year, rather than deliver a big wage increase.

Almost three-quarters (73 per cent) of the pilots agreed to the deal after voting down a previous offer in December.

The Australian Federation of Pilots that represents about 550 of the pilots acknowledged the deal was “not extraordinary” but executive director Simon Lutton said it was “well balanced”.

“There are elements that are good for the company, and those that are good for the pilots in the current circumstances,” Mr Lutton said.

“The main difference between this agreement and the previous proposal is there’s more of an ability for pilots to manage their lifestyle. They can choose to work lower hours if they need to and the hourly rate increases over the 2.5-year term of the agreement.”

Under the deal a pilot’s minimum guaranteed hours fall from 69 hours a month to 57.5 hours, with a guaranteed 12 days off in 28.

Mr Lutton said if a pilot worked the same number of hours as they were previously working they would be slightly ahead of where they were now.

“It’s comparable to the current agreement. We see it as a sensible solution in the current environment,” he said.

The protection from redundancy was particularly important for pilots at the moment, Mr Lutton said.

The Virgin Independent Pilots Association (VIPA) and Transport Workers Union, which are set to merge, also welcomed finalisation of the deal.

VIPA president John Lyons said it came at an important time.

“The current aviation climate provided difficult circumstances for workers to negotiate, yet by standing strong and united, Virgin pilots have succeeded in achieving a good package,” Mr Lyons said.

“Given the fatigue of more than a year of uncertainty and a yoyo effect of stand-ups and stand-downs, pilots have held out to ensure the best possible outcome for themselves and their families, while ensuring they can do their jobs at the high standards expected of the airline.”

The pilots’ agreement was the last to be voted up by Virgin workers since the airline was bought by US private equity firm Bain Capital after going into administration last year.

TWU national secretary Michael Kaine said the approach taken by the new owners had achieved sensible outcomes for workers across the board.

“It’s been a stark contrast to Qantas’s callous approach to illegally axe and outsource workers to prevent them exercising their legal rights to bargain or take industrial action,” Mr Kaine said.

“The federal government should take stock and ensure workers’ right across aviation are supported so that the industry remains safe, secure and viable once demand for flights returns to normal.”

A Virgin Australia spokesman said the agreement would provide “security and certainty” for pilots and position the airline to respond to the short-term pressures of the Covid-19 pandemic.