Virgin Australia pilots in line for pay rises of up to $42k this year under new in-principle agreement

Virgin Australia staff can look forward to a hefty pay rise this year if they vote to approve a new work agreement.

Captains at Virgin Australia are in line for a $42,000 pay rise this year after the Fair Work Commission signed off on an in-principle agreement with the support of unions and the airline.

Under the agreement – which is yet to be voted on by Virgin’s 1146 pilots – captains and first officers will get a 15 per cent pay rise in the first year of the deal, and 3 per cent increases in each of the next two years.

The hefty rise was intended to address pay cuts taken by pilots to help Virgin Australia out of administration when US private equity firm Bain Capital took over in late 2020.

According to pay rates published by the commission, a captain’s base salary would increase from $239,488 to $281,750 after the first rise, reaching $298,908.58 by the third year.

First officers would see their base salary lift by $27,470 in the first year to $183,137, hitting $194,290 by the end of the three-year agreement.

In exchange for the pay hike, pilots would lose six designated days off (DDOs) a year — with the unions accepting a reduction from 156 DDOs to 150 DDOs in addition to six weeks’ annual leave.

Virgin Australia took the pay dispute to the commission after pilots overwhelmingly voted down a previous offer.

Vrgin Australia 737-800s at Sydney Airport. Picture: Brendon Thorne/Bloomberg

The new offer will again be put to the pilot cohort, and FWC deputy president Nicholas Lake encouraged employees to support the deal.

“The consequences of voting this proposal down will create further uncertainty and prevent substantive pay increases to all employees,” Mr Lake said.

“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.”

Virgin Australia chief pilot Alex Scamps said they were pleased to have reached an in-principle agreement with unions, following “constructive discussions” in the FWC.

“We will now immediately commence the process of drafting a revised enterprise agreement which we intend to put to our pilots for a vote in October,” Mr Scamps said.

“We appreciate the assistance of the FWC and the patience and feedback from our pilots throughout the negotiation process.”

The Australian Federation of Air Pilots declined to comment on the offer, while the Transport Workers Union condemned the drawn-out process.

“It should not have taken months of negotiations, a no vote and a Fair Work Commission process for Virgin to come to the table with a fair offer that restores the pay and conditions decimated during the administration process,” TWU national secretary Michael Kaine said.

“There is significant work Virgin still must do around rostering and fatigue issues. 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.”