Virgin ground staff win pay rises of up to 20 per cent

Ayesha de KretserSenior reporterNov 20, 2023 – 4.24pm
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ShareVirgin Australia has dodged the threat of disruptive industrial action from ground staff during the peak Christmas period, agreeing to a pay deal that will deliver some workers pay rises as high as 20 per cent in the first year.
The three-year pay deal involves a minimum 14.9 per cent increase across all pay grades, regardless of seniority, and comes after baggage handlers and cleaners won the right to a protected action ballot at the Fair Work Commission in late October.

The Transport Workers Union says the Virgin pay deal “corrects pay and conditions after pandemic sacrifice” for staff including baggage handlers and cleaners. Robert Rough Ground workers won 8.4 per cent in the first year, followed by 3 per cent and 3.5 per cent, after forgoing wage increases during the COVID-19 pandemic and as Virgin Australia entered administration. The airline has returned to profit for the first time in 11 years, as appetite for travel propelled earnings.
A small cohort of managers will get 20 per cent in year one of the agreement in recognition of their sacrifices during the pandemic, the Transport Workers Union said.
It is understood the highest-paid ground workers earn $67,000 a year before penalties and allowances while the lowest paid are believed to earn about $48,886 a year. The deal sets a precedent as Virgin tries to close out negotiations with cabin crew and pilots, before it resumes work to relist on the ASX in May. Cabin crew also sought the right to a protected action ballot last week after failing to reach agreement on pay.
The Reserve Bank of Australia is closely watching wage growth to ensure it does not spiral and undermine inflation-fighting measures. Annual wages growth hit 4 per cent in the September quarter, at the upper band of what the RBA sees as sustainable for inflation.
A Virgin spokeswoman said the airline was pleased to have reached agreement and stressed costs were not disproportionately high.
“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,” she said.
TWU National Secretary Michael Kaine acknowledged Virgin had not followed rival Qantas’ lead, after the High Court ruled that Qantas had acted illegally in sacking 1700 ground workers at least in part to ward off industrial action.
“Workers are the backbone of an airline. Virgin’s commitment to in-source more jobs is a stark contrast to the brutal, illegal outsourcing approach of its rival, Qantas,” Mr Kaine said.
“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.”
The TWU said Virgin has also agreed to implement workplace safety measures including an extreme weather policy and changes to rostering numbers, “as well as correcting poverty pay that had led to workers juggling second or third jobs.”
“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,” Mr Kaine said

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