Insiders say the new deal would effectively go from about AUD 40,000 per year for 70 hours a month to 135 hours a 28 days for the same salary, or about AUD 24,000 a year, or about AUD 25 an hour. Ultimately, pilots have little or no leverage to negotiate payment and terms. It remains to be seen how this could be done as part of existing corporate negotiations, but Qantas CEO Alan Joyce is legendary for playing hard in labour relations. Bain Capital, the new owner of Virgin, wants, as part of the negotiations on company agreements, major reductions in the hourly wage of pilots, an increase in hours and a reduction in the number of days off. The Hardline Transport Workers Union will extend its coverage to Virgin pilots, as the company`s new owners try to reduce pilots` wages and conditions. There are a lot of moving parts, how pilots are paid. But the proposal presented by Virgin management involves a reduction in hourly wages, an increase in hours and a reduction in the number of days off. The objective of the exercise is to significantly increase the productivity of pilots. The company has new owners, a Boston-based private equity firm. It looks like they want to introduce some American employment conditions into Australian airspace. There are claims that pilots are only paid for the hours they fly. In the cabin, cabin crew worked up to 15 hours straight. If Virgin Australia was looking for some clear air after the sale and relaunch, disgruntled employees could pay the price.
Virgin Australia gives in to negotiate new company agreements. But the workers and their unions are not satisfied with what the airline is proposing. On Wednesday, the unions made public their discontent. Creditors and shareholders have taken their haircut under virgin administration and now it`s the pilot`s turn. They are facing changes in wages and conditions that, among the new owners Bain Capital, would be synonymous with significant cuts. Bains` ability to reset Virgin pilots` salaries is partly made possible by the expiration of their company agreement, but success in achieving the result has been enhanced by the fact that there are tens of thousands of surplus pilots worldwide. . .