Union, company reach 'in-principle' deal
The planned strike action by Virgin Australia's ground workers has been cancelled following an "in-principle deal" reached by the Transport Workers Union (TWU) and the employer on Monday.
The TWU said the agreement offer "corrects pay and conditions after pandemic sacrifices."
It also sees the creation of more full-time positions, more hours for part-time workers, and a commitment from Virgin to insource more ground handling jobs starting with Link Airways flights between Sydney and Canberra.
"Good, secure jobs are the answer to rebuilding Virgin Australia and the aviation industry. This deal will encourage workers to remain with the airline, while increased part-time hours and full-time positions will assist with on-time performance," said TWU national secretary Michael Kaine in a statement.
The deal will also see Virgin re-establish its collapsed job classification structure. This means experienced workers will receive pay increases between eight and 20% in the first year, followed by a universal 6.5% increase across the subsequent two years of the agreement.
It will also correct the so-called poverty pay that left some employees working two or more jobs to remain afloat.
Virgin will also ensure the workplace safety of employees, as the airline made a commitment to introduce extreme weather policy and roster team numbers to a safe standard.
According to the TWU, the agreement also responds to the crucial elements of a five-point claim served to Bain Capital in relation to respecting employees, good secure jobs, and workforce investment.
"This is the premium enterprise agreement Virgin workers knew they needed to achieve from Bain Capital to correct pay and conditions and make jobs more secure after administration and pandemic sacrifices had left them struggling to make ends meet," Kaine said.
The TWU said its members will vote on the new deal brought to the table.
Meanwhile, a spokesperson from Virgin Australia told the media that they are "pleased" to reach an in-principle agreement with the union.
According to the spokesperson, they have always been committed in bargaining in good faith with the union, acknowledging that they are both motivated by "genuine desire" to deliver better outcomes for employees.
"The overall cost of this agreement is in line with the agreements we have reached with other work groups, and include increases to base wages, skills progression adjustments, allowances and productivity improvements," the spokesperson said as quoted by NCA NewsWire.
Despite the development for ground workers, Virgin's cabin crew members are still gearing up for industrial action, according to the TWU.
Virgin cabin crew staff members will begin voting on protected industrial action next week, the union said.
According to the TWU, the key concerns of the cabin crew members remain unaddressed.
They have been crying out over "poor rostering system, unrealistic turnaround times, and high staff turnover" leading to crew missing breaks.
"Cabin crew and pilots currently bargaining need urgent answers to outstanding issues such as fatiguing rosters. All Virgin workers deserve to have certainty of fair pay and conditions before the busy festive period," Kaine said.
