Virgin Australia workers turn up heat on owners ahead of proposed IPO

The airline’s return to profit has workers demanding a share of the spoils, and warning they will fight to get it.

Virgin Australia workers have issued a list of demands as a fresh round of pay talks begins, including a $1000 share parcel for every employee when the company relists on the ASX.

The Transport Workers Union unveiled the five “claims” on Virgin Australia’s owner Bain capital as enterprise bargaining began for cabin crew and ground services.

TWU national secretary Michael Kaine said the workers had given up a lot to help Virgin Australia through the pandemic including pay and conditions which had led to high staff turnover, absenteeism and disruption.

“Let’s not forget, it was these workers who were fundamentally important to ensuring Australia retained a second airline,” Mr Kaine said at Brisbane Airport on Tuesday.

“It was fingernail stuff in April 2020 when this company went into administration. These workers were integral in getting it back up into the air and they deserve to be repaid.”

Mr Kaine said some of the workers were so poorly paid, Virgin Australia recently had to make an adjustment to ensure they were above the minimum wage.

“This is not a money grab, these workers have been on emergency settings for three years, they are exhausted, they’re fatigued, they feel undervalued, not listened to and that’s not the Virgin Australia we want,” he said.

“We’re at a crossroads and Virgin has the opportunity to take the high road and we urge them to do just that.”

The Transport Workers Union is leading calls for Virgin Australia cabin crew and ground service workers to be paid more as they begin enterprise bargaining negotiations.

After almost collapsing in April 2020 as the Covid pandemic took hold, Virgin Australia shed a third of its workforce, and whittled its fleet down to under 50 aircraft.

It has since rebuilt to 84 Boeing 737s and 7000 employees after US private equity firm Bain Capital bought the carrier for $3.5bn.

With the airline now back in profit and preparing to return to the ASX with an initial public offering, Mr Kaine said Bain needed to recognise the role workers played in Virgin’s success and reward them appropriately.

He said the demand for $1000 worth of shares in the IPO process was not negotiable, adding it was “all in the hands of the owners”.

“The Virgin Australia workforce worked constructively with Bain to get the company back into the air and meet the challenge of the Covid crisis, and the workforce has again approached Bain with constructive suggestions about how a platform for growth and a profitable company can exist into the future,” said Mr Kaine.

“That is critical and it’s fundamental Bain signs onto those principles.”

There was an expectation Virgin Australia would return to the ASX by the end of the year, after achieving a half year profit of $125m.

However, investor presentations were put on hold several months ago, and chief executive Jayne Hrdlicka has indicated they were in no rush to go public, and would be guided by market conditions.

A fight with employees was unlikely to be considered helpful, with Mr Kaine suggesting industrial action would be on the cards if they did not get the right outcome.

“These workers showed during the pandemic they’re willing to fight and fight hard for the benefit of this airline,” he said.

“In the pandemic and administration they struck a social contract with Bain to get this airline back in the air, and they’re taking a constructive approach with Bain on this but if it comes to a fight there’ll be a fight.”

Pilots were also in line for a new EBA with negotiations expected to start later this year.

A Virgin Australia spokeswoman said the airline had a “long proud history of putting people at the centre of the business and building strong relationships across our workforce and with unions”.

“We remain focused on setting Virgin Australia up for long-term success, and rewarding and acknowledging our people as part of that,” said the spokeswoman.

Earlier this year, Ms Hrdlicka announced eligible staff would receive a bonus equivalent to 4 per cent of their base salary at the end of June, on top of a 2 per cent bonus paid in December.

The payments were intended to recognise the contribution of employees to the airline’s turnaround.