A scenario that threatened to disrupt the plans of countless Australian holidaymakers has been averted, thanks to a deal between Virgin Australia and cabin crew, represented by the Flight Attendants’ Association of Australia (FAAA) and The Transport Workers Union (TWU).
According to the TWU, Virgin cabin crew recently voted “99 per cent” in favour of “last-resort” protected industrial action, which would likely have impacted air travel over the peak school holiday period.
But with both sides now in agreement, this looks to have been averted. In a statement, Virgin Australia called the deal “great news for our teams and our customers”.
“Virgin Australia is pleased to have reached an in-principle agreement with the FAAA and TWU on the Cabin Crew Enterprise Agreement,” it said.
“Under the new Enterprise Agreement, cost of living pressures will be easier for crew to manage and lifestyle challenges will be easier to navigate.”
Virgin said the deal will deliver pay rises of 15 per cent-plus over three years “depending on the skill and tenure of the crew member”. The TWU said the pay increases will vary between 14 per cent and 18 per cent.
“And the overall cost of this agreement is in line with the agreements we have reached with other work groups,” it added.
“Today’s outcome is the result of constructive negotiations with both unions and facilitated by the Fair Work Commission.
“It will ensure our people are appropriately rewarded for their work and that Virgin Australia is set up for long-term success.”
The TWU said the new agreement would bring a better work-life balance to employees as well as more money.
Among the provisions, the deal locks in, according to the union, are an extra six days off a year, recognition for unpaid standby and overtime payments that kick in after nine hours.
“Virgin cabin crew have achieved an enterprise agreement that substantially lifts pay and conditions after pandemic emergency settings left them battling long hours, gruelling rosters and juggling second jobs to get by,” TWU National Secretary Michael Kaine said.
“From the start, cabin crew asked for terms and conditions that show they’re respected, heard and valued. Finally, crew have achieved a deal that will keep them in their jobs.”
Kaine also lauded the “strength of workers bringing a solution-focused approach to bargaining”.
“Earlier this year, TWU ground crew, cabin crew and pilots provided Virgin owners Bain Capital with a plan to future-proof the airline with good, secure jobs and industry standards,” he remarked.
“It took longer than it should have, but this plan is now well underway with strong improvements to ground and cabin crew jobs.”
Pilots next?
The union said a deal for pilots must be next on the agenda.
“With the peak season upon us, it’s a relief for everyone that protected industrial action won’t be needed,” Kaine stated.
“Good, secure jobs are the answer to rebuilding aviation. That’s why we need a Safe and Secure Skies Commission to rebalance the industry.”
In November, Virgin Australia announced it had ordered six more B787 MAX-8s for its domestic and short-haul international routes, bringing the total fleet pipeline to 14 with one new plane delivered almost every month in 2024.
In collaboration with Air New Zealand, the carrier also recently initiated a significant move towards re-establishing its trans-Tasman network by submitting a joint application to the Australian Competition and Consumer Commission (ACCC) and the New Zealand Ministry of Transport for a comprehensive VA/NZ codeshare agreement.
In October, Virgin announced it was in the black for the first time in more than a decade, reporting a statutory net profit after tax of $129 million for the 2022/23 financial year (FY23).
