Virgin strike talks drag on

Virgin Australia remains locked in talks with the union representing cabin crew in a bid to avoid costly strike action leading up the busy Christmas period.

Virgin Australia boss Jayne Hrdlicka warned staff this week that threatened strike action by cabin crew could hurt the long term viability of the carrier. Picture: AAP

Virgin Australia remains locked in talks with its cabin crew over conditions in a bid to avoid costly strike action leading up the busy Christmas period.

Negotiations between the Brisbane-based airline and the Transport Workers Union are set to continue for a second consecutive day Thursday in the Fair Work Commission after talks last week failed to reach an agreement over conditions.

It is understood the negotiations were more constructive on Wednesday but parties fell short of reaching an agreement. Virgin Australia boss Jayne Hrdlicka warned staff this week that threatened strike action by cabin crew could hurt the long term viability of the carrier.

In an email to staff on Monday, Ms Hrdlicka said Virgin was unlikely to get another chance if it did not keep costs under control in the brutally competitive airline business.

Virgin, which was rescued out of administration by Bain Capital in 2020, has reported its first positive result in 11 years after losing an estimated $2bn in the previous decade. The TWU said cabin crew had for months been raising concerns that included back-to-back rosters forcing them to skip rest breaks and battle fatigue.

Virgin ground crew recently settled an agreement with more full-time jobs, better hours for part-timers and classification levels reinstated, lifting pay by as much as 20 per cent for the most experienced workers after pandemic settings disbanded seniority levels.

Virgin founder Sir Richard Branson has labelled the threat of industrial action by Virgin Australia cabin crew as potentially ‘very, very, very, very, very damaging’.

The TWU said that if terms and conditions are not restored for cabin crew, high turnover and fatigue-related absenteeism would continue, with “service standards doomed not to return to pre-pandemic levels.” Virgin Australia has made an offer to cabin crew valued at $50 million over three years. It says it remains committed to a quick resolution of the dispute.

Virgin founder Sir Richard Branson has labelled the threat of industrial action by Virgin Australia cabin crew as potentially “very, very, very, very, very damaging” and said the airline could fail like Ansett if the dispute persists in an extraordinary speech captured on camera.

The billionaire’s comments come after the Transport Workers’ Union said Virgin’s cabin crew were worried about their working schedules, which they claim have included back-to-back rosters that have forced them to work while fatigued and to also skip rests.

The TWU protected-action ballot closed last week with 99 per cent of participating Virgin cabin crew voting in favour of industrial action unless an agreement can be reached to improve pay, job security and work-life balance. There was a 90 per cent participation rate, with 99 per cent voting yes to 24-hour stoppages. The average across all possible actions, including shorter stoppages and overtime bans, was 98 per cent in favour.