Virgin staff rally for better conditions ahead of public listing

Staff who helped rescue an airline from the brink of collapse are now calling for better conditions amid claims of “burnout”.

Staff at one of Australia's busiest airlines have called for better conditions and share options amid plans to list the company publicly for the first time only years after entering administration.

Pilots, cabin crew, and ground staff at Virgin Australia will gather at Brisbane airport on Tuesday to call on owner Bain Capital to commit to a five-point plan before “pushing ahead” with a public listing.

The plan, submitted by the Transport Workers Union, calls on US-based Bain Capital to prioritise good and secure jobs and ix workplace issues that have caused stress, fatigue and high turnover.

The union is also calling on Bain to invest in “technology, fleet and workers” and to offer the airline’s 7000 staff an annual $1000 employee share scheme in conjunction with the public listing.

Virgin Australia staff have called for better conditions. Picture: NCA NewsWire / Nicholas Eagar

TWU national secretary Michael Kaine said workers were instrumental in seeing Virgin through the administration process and called on Bain Capital to ensure “long-term success”.

“The Virgin workforce is at the core of the airline’s reputation and service standards,” he said.

“Workers are eager to get back to that workplace culture after pandemic sacrifices and rostering issues have caused workers to fall behind and staff turnover and absenteeism to rise.

“Ground workers, cabin crew and pilots are standing together to call for fairness, respect and the opportunity to build and maintain Virgin Australia as the best airline it can be.”

Virgin Australia entered voluntary administration in April 2020 amid the Covid pandemic and nationwide lockdowns that resulted in the standing down of thousands of airline staff.

TWU national secretary Michael Kaine said workers were instrumental in seeing Virgin through the administration process. Picture: TWU

Only months later, Bain Capital agreed to purchase Australia’s second-biggest airline for $3.5bn amid reports the airline was losing about $200m a month when it went into administration.

Less than two years later and Virgin submitted its first full-year of profit in more than a decade in early 2023, raking in a whopping $2.5bn, according to the Australian Financial Review.

He claimed workers had been instrumental in returning the airline to profitability following its sale, and Bain stood to gain “hundreds of millions” from the public listing.

“It is only right that hardworking staff are rewarded for their efforts through a reasonable employee share scheme, the likes of which are common in Australia,” Mr Kaine said.

“Aviation must be rebalanced to ensure good quality jobs and service standards are prioritised over corporate greed, which has run riot at Qantas and dominated the industry.

Virgin submitted its first full-year of profit in more than a decade in early 2023. Picture: NCA NewsWire / Gaye Gerard

“Workers are calling on Bain to join them in campaigning for a Safe and Secure Skies Commission to restore aviation to a stable, reliable industry for all.”

The union said Virgin ground staff had begun enterprise agreement negotiations, with pilots expected to begin the same process soon.

The airline was last month forced by the Fair Work Commission to increase pay to ground staff and cabin crew by 5.75 per cent.

The ruling led to an automatic increase in pay for between 500-600 of the Virgin’s staff.

Speaking outside Brisbane Airport, Mr Kaine said Australian airline employees had long been the “gold standard” within the industry, with many taking up roles within the sector from generation to generation.

Now, he said the airline was at a “crossroads” and could either “take the high road” and adopt the principles put forward by the TWU on Tuesday or face the potential of “decimating” their workforce.

The airline was last month forced to increase pay to ground staff and cabin crew by 5.75 per cent. Picture: NCA NewsWire / David Crosling

Nonetheless, Mr Kaine said the union was still a “long way off” from any potential industrial action, but was committed to the “fight”.

“These workers have shown they are ready to fight and to fight hard, for the benefit of the industry,” he told the media on Tuesday.

Mr Kaine said workers had also taken pay cuts during Covid and the administration process.

Tuesday’s demands, which also included industry reform, will also be submitted to the Queensland Investment Corporation.

Originally published as Virgin staff rally for better conditions ahead of public listing