Virgin Australia hits back in row over workplace culture

The airline has defended its workplace culture under new owners Bain Capital, insisting it remained ‘fun and irreverent’.

One employee has lodged a court claim against Virgin Australia chief executive Jayne Hrdlicka. Picture: Sarah Marshall

Virgin Australia says the airline’s culture has not changed since the sale to US private equity firm Bain Capital and employees continue to enjoy a “fun-loving and irreverent challenger” workplace.

The statement, issued by the airline’s chief people officer Lisa Burquest, followed a string of high-level departures and a bullying claim against chief executive Jayne Hrdlicka.

Ms Burquest said testament to the strength and health of the culture at Virgin, was the fact the airline employed 6300 staff, of whom 38 per cent had been with the airline for over ten-years.

“Annualised voluntary turnover is 8.5 per cent, well within what is considered normal and healthy; and executive and management level turnover rates are also normal and healthy: 4 per cent voluntary turnover and 2 per cent involuntary turnover this financial year,” Ms Burquest wrote.

“A recent survey of leaders in the business shows that 97 per cent agree that leaders show a safety culture, 96 per cent say desired leadership behaviours are displayed, and 90 per cent feel supported by leaders.”

The statement followed a series of reports about unrest within the airline, after the departure of numerous long-serving managers since the sale to Bain Capital in November 2020.

Among those to leave in the last year, were chief medical officer Sara Souter, chief pilot Michael Fitzgerald, head of crew culture Ryan Bradshaw, people safety and wellbeing manager Liv Hewitt, two heads of revenue, team travel leader Kerri Homann and customer experience manager Caitlin Malone.

Almost the entire corporate affairs team had turned over since November 2020, and out of 40 staff in the workplace relations and human resources team, about a dozen pre-Bain employees remained.

In a further blow, Mr Fitzgerald lodged an unfair dismissal claim in the Federal Circuit Court on Tuesday, citing bullying by chief executive Jayne Hrdlicka.

Although the application provided few details of how he was bullied, Mr Fitzgerald said “the conduct constituted repeated unreasonable behaviour” prompting him to seek medical advice in July 2021 and take leave.

His position was terminated on March 1, 2022.

Ms Burquest said Virgin Australia had engaged an external party to investigate allegations made against Ms Hrdlicka in December 2021, and they were found to be unsubstantiated.

She said Virgin Australia had been through a difficult period after the airline was placed in administration in April 2020 at the same time as the aviation industry was almost shutdown due to Covid-19.

However she said they were now successfully navigating a major operational and financial turnaround “while maintaining and growing the unique culture we are known for”.

“Of course, culture is a complex issue that is felt differently by different people,” Ms Burquest said. “Everyone who was an employee of Virgin Australian at the start of 2020 has experienced a very difficult and emotional time — from the lows of the uncertainty of voluntary administration and stand-downs to the highs of being purchased by Bain Capital who provided a lifeline to get us back on our feet.”

She acknowledged that employees had to “give a lot during this difficult period” and a large number of roles were made redundant due to insufficient work for them to do.
“We understand that giving so much and going through such a difficult time can change the way some employees feel about their place of work,” said Ms Burquest.

“It is natural that some managers will not enjoy this much change in their work practices and choose to leave, despite the fact the culture has not changed.”