Application by Virgin Australia Airlines Pty Ltd

[2023] FWC 3356

[2023] FWC 3356

FAIR WORK COMMISSION

RECOMMENDATION

Fair Work Act 2009

s.240—Bargaining dispute

Application by Virgin Australia Airlines Pty Ltd

(B2023/1325)

DEPUTY PRESIDENT LAKE BRISBANE, 13 DECEMBER 2023

Bargaining dispute of proposed enterprise agreement replacing the Virgin Australia Cabin Crew Agreement 2021

Background

1. Virgin Australia Airlines Pty Ltd (Virgin Australia) commenced negotiations with the Flight Attendants’ Association of Australia (FAAA) and the Transport Workers’ Union (TWU) regarding the replacement of the Virgin Australia Cabin Crew Agreement 2021 on 14 June 2023.

1. The FAAA provided their log of claims to Virgin Australia on 24 July 2023 and the TWU lodged their log of claims on 25 July 2023.  The parties have engaged in 8 meetings with each union (joint and separate) to reach agreement.

1. On 13 November 2023, the TWU lodged an application for a Protected Ballot Action Order (PABO) which was approved by the Fair Work Commission (the Commission). On 15 November 2023, the FAAA lodged an application for PABO which was approved by the Commission.

1. One of the requirements of the PABO is for the Commission to facilitate a compulsory conference under s.448 of the Fair Work Act 2009 (the Act) which was allocated to me to facilitate.  This was facilitated on 28 November 2023.

1. During the conference, the parties raised key issues in contention which mainly surrounded the rates of pay and seeking improvements in work/life balance. At the conclusion of the conference, I recommended that a s.240 bargaining dispute application be made to the Commission. This would allow the Commission to further assist the parties to resolve key bargaining disputes noting that the TWU and FAAA were considering taking protected industrial action.

1. Virgin Australia lodged an application with the Commission on 1 December 2023 in the aims of resolving the matter and to continue discussions in good faith. 

1. Virgin Australia, the FAAA and the TWU conducted ongoing discussions following the bargaining dispute application to narrow down contentious matters. I facilitated a conference on 8 December 2023.

1. Virgin Australia provided an improved offer to the FAAA and the TWU. During this conference, it was proposed to the parties that the FAAA and the TWU should come up with a consolidated wage response and to narrow down key conditions that the TWU and the FAAA are seeking. The FAAA and the TWU agreed to develop a response in the following days and provide this to Virgin Australia for consideration before a conference is listed today. The parties have complied with this request.

1. The TWU and the FAAA have foreshadowed that protected industrial action will take place through a ‘stop work’ during the Christmas period should the parties fail to reach agreement.

1. The main issues of contention surround two broad issues.

1. Rates of pay and classification structure.

2. Conditions that will improve work/life balance.

1. I have issued a Recommendation for the purposes of transparency on the parties’ position on the matter, and to help facilitate further bargaining discussions with the view of drafting and finalising the Agreement without the need of protected industrial action.  I have provided my views on the main issues of contention below. I note that the parties have agreed to review other clauses in the Agreement which do not require the Commission’s assistance.

Rates of pay and classification structure

1. Virgin Australia responded to the joint union proposal on the morning of 13 December 2023.

1. In response, the FAAA and the TWU sought fewer classifications within the proposed structure. I identified the need for Virgin Australia to simply their classification structure of the Cabin Crew Staff from 8 classifications to 6 classifications, along with Cabin Managers from 3 classifications to 2 classifications. Virgin Australia agreed to develop a proposal that would simplify the classification structure as outlined and this was presented back to the FAAA and the TWU in the afternoon.

1. The rates of pay and classification structure offered by Virgin Australia provide between 8% and 12% increases in Year 1, with 3% increases in Year 2 and Year 3.  The parties have made good progress on this issue today, and further concerns raised will be discussed in tomorrow’s conference.

Conditions that will improve work/life balance

1. The five main issues raised were:

1.   Number of days off per roster period

2.   Daily Travel Allowance and Flying Allowance

3.   Overtime triggers and fatigue credits

4.   Payment and recognition for home reserve

5.   Daily duty hour limits

Number of days off per roster period

1. Virgin Australia proposed 10 Designated Days Off (DDOs) across 6 Roster Periods (RPs) during off-peak periods and 9 DDO’s across 7 RPs during peak periods. I am satisfied that Virgin Australia’s proposal addresses the concerns regarding DDO arrangements which is an improvement from 9 DDO’s in the current Agreement. The matter should no longer be in contention.

Daily Travel Allowances and Flying Allowances

1. The FAAA and the TWU informed the Commission on 12 December 2023 that they have accepted the proposal regarding the structure of Daily Travel Allowance instead of the Flying Allowance and therefore is no longer a contentious issue.

Overtime Triggers

1. Virgin Australia have agreed to Daily Overtime Allowance which were proposed by the TWU and FAAA. It is proposed that from 9 - 11 hours, the relevant employee would be paid at 50% of the base salary.

1. The current Agreement’s overtime triggers start from 12 hours where an employee would be paid an additional 100% for time worked. The overtime trigger will still be in place but is improved as it is now triggered after 11 hours for all duties at 100%. This condition is not in the current Agreement and is a beneficial term to be included in the proposed agreement. This is no longer an issue in contention.

Payment and recognition for home reserve

1. The parties have reached agreement on this matter and will be finalised by the parties.  This is no longer an issue in contention.

Daily duty hour limits

1. Virgin Australia have put a proposal on the table which include multiple benefits in addressing fatigue issues. A further recommendation will be issued once the parties have had the opportunity to have a facilitated discussion on this matter.

Recommendation

1. The parties have made good progress in reaching agreement or are close to agreement on the issues raised in the Recommendation. The parties are to maintain their focus and energy in reaching resolution of the bargaining matters in dispute at tomorrow’s conference held before me on 14 December 2023.

DEPUTY PRESIDENT

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