Virgin heads off strike action with pay deal for crew

Virgin Australia will offer increased pay and more time off for its cabin crew, heading off threatened industrial action in the lead-up to Christmas.

Virgin Australia has headed off costly industrial action in the lead-up to Christmas after striking a deal with cabin crew offering increased pay and more time off.

The Transport Workers’ Union said the agreement struck with Virgin would deliver salary increases of between 14 per cent and 18 per cent to crew over a three-year period.

The TWU said cabin crew, who recently voted 99 per cent in favour of industrial action in support of their claims, had achieved an agreement that “delivers better pay, safer and fairer rosters, and work-life balance.”

The agreement, which was reached after a marathon series of talks in the Fair Work Commission in Brisbane, locks in provisions including an additional six days off a year, recognition for time spent on unpaid standby and overtime payments after nine hours.

Virgin Australia boss Jayne Hrdlicka earlier warned threatened strike action by cabin crew could hurt the long term viability of the carrier.

TWU national secretary Michael Kaine congratulated cabin crew on holding firm for the terms and conditions they needed to make their jobs sustainable.

Virgin Australia CEO Jane Hrdlicka. Picture: Tertius Pickard

Mr Kaine said the agreement substantially lifted pay and conditions after pandemic emergency settings left crew battling long hours, gruelling rosters, and juggling second jobs to get by.

“With the peak season upon us, it’s a relief for everyone that protected industrial action won’t be needed,” said Mr Kaine. “Good, secure jobs are the answer to rebuilding aviation.”

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.

Mr Kaine said that earlier this year ground crew, cabin crew and pilots had provided Bain Capital with a plan to “future-proof the airline with good, secure jobs and industry standards.” “It took longer than it should have, but this plan is now well underway with strong improvements to ground and cabin crew jobs,” he said. He added that Virgin pilots remained locked in ongoing negotiations over their agreement.

Ms Hrdlicka earlier warned staff that they “won’t get a third chance” if costs could not be controlled at the carrier. “It is critical that we all stay united in ensuring Virgin Australia is set up for long-term success,” she said.

A Virgin Australia spokesperson said the carrier was pleased to have reached an in-principle agreement with unions representing crew.

“Cost of living pressures will be easier for crew to manage, and lifestyle challenges will be easier to navigate,” the spokesperson said.

“The agreement will deliver 15 percent + salary increases over three years, depending on the skill and tenure of the crew member.

“And the overall cost of this agreement is in line with the agreements we have reached with other work groups. It will ensure our people are appropriately rewarded for their work and that Virgin Australia is set up for long-term success.”