Virgin Australia workers’ ire at betrayal of Paul Scurrah

It took just one email for Bain Capital to kill off Virgin Australia’s pro-worker culture, so carefully nurtured by Paul Scurrah.

It was no secret Paul Scurrah was well-liked by his employees, with whom he regularly engaged on the workplace forum. Picture: Lyndon Mechielsen

It took just one email for Bain Capital to kill off Virgin Australia’s pro-worker culture, so carefully nurtured by Paul Scurrah since his arrival at the airline 18 months ago.

Within hours of the announcement he would leave Virgin once the sale to Bain was finalised, employees were contacted by an executive manager they had never heard.

“I know I haven’t had the opportunity since I started a few weeks ago to introduce myself,” began the intranet message from chief people and communications officer Lincoln Turvey.

“With the news today, I think I’ll come back to you on that.”

He went on to issue a warning to employees to watch what they posted on the workplace discussion platform in the emotionally charged environment.

“It’s important to remember that what is posted on here will be treated the same as if it were said in person or in an email,” Turvey wrote.

“We ask that you be respectful and refrain from breaching any of our terms of use.”

Inside the airline, word of Scurrah’s departure and the announcement former Jetstar chief executive Jayne Hrdlicka would replace him wasn’t well-received.

Prior to Turvey’s warning, employees let loose at the new owner, US private equity firm Bain, which had previously stated its commitment to retaining Scurrah as chief executive.

“They have no emotional attachment to crew —– they are wanting us to leave, to push crew out the door,” said one post shared with The Australian. “We are all gutted and heartbroken.”

Scurrah was also distressed, sharing with workers that his decision to step down had been made with “a heavy heart”.

“I know this news may come as a surprise to you; however, with the sale to Bain Capital almost complete, and after some long discussions with my family, the time feels right,” he wrote.

He declined to discuss his departure, saying that he was “too emotional”.

It was no secret the former Queensland Rail and DP World boss was well-liked by his employees, with whom he regularly engaged on the workplace forum.

When he was installed in the job in March 2019, he made it clear that a positive workplace culture was critical.

“I actually believe that if (employees) are happy, then our customers are happy,” Scurrah said.

“That is a very high priority for us. All of that is a culture and a circumstance that I want to create to make sure that our shareholders are very happy with the results that come out of that focus.”

While shareholders may not have been happy, particularly when Virgin went into voluntary administration on April 21 with debts of $6.8bn, it was clear the workers were.

In fact, many held Scurrah in such regard they even appointed him their proxy for the second creditors’ meeting that voted in favour of the sale to Bain.

At that time, there was no indication a change of chief executive might be planned, despite the advisory role Hrdlicka played in the bidding process. Her board commitments with Tennis Australia and Hawaiian Airlines meant she was too busy for a role as demanding as Virgin boss, Bain had said, adding that she would likely be appointed to the board.

But in the five weeks that followed the meeting, the relationship between Bain and Scurrah appeared to sour.

COVID-related travel restrictions and state border closures meant opportunities for flying remained severely curtailed, adding to the pressure facing Virgin.

The airline announced the axing of seven regional destinations and reduced its fleet to fewer than 60 planes.

Negotiations on new workplace agreements only added to the tensions, with unions angry at members facing 30-40 per cent pay cuts and the loss of hard-fought conditions.

This week, things took a further turn for the worst when employees were instructed to limit “complimentary snacks” to passengers to try to stretch out dwindling supplies.

“The trust between us and Bain has been completely severed,” said one employee.