Proposed
Virgin Blue Pilots Agreement
2007
Subject to Pilot Vote
December 2006
Virgin Blue Pilots Agreement 2007
Parties
The parties to this Agreement are Virgin Blue and the Australian Federation of Air Pilots (AFAP).
This Agreement is binding on:
(a) Virgin Blue;
(b) The AFAP; and
(c) Pilots employed by Virgin Blue who fly Boeing 737 or Embraer aircraft in Virgin Blue’s Australian domestic operations.
Agreement Objectives
The introduction of this Agreement between Virgin Blue, the AFAP and Virgin Blue pilots represents a new basis for domestic aircraft operations within Australia.
It is recognised by the parties that benefits projected for Virgin Blue and its pilots will depend on ongoing consultation, cooperation and a recognition that all circumstances and eventualities may not have been anticipated when developing this Agreement.
To this end, the following reflects the objectives of the parties and the agreed process for managing the Agreement in an ongoing sense:
(a) Improved management of fatigue with the establishment of a Fatigue Risk Management System (FRMS);
(b) Increase in days free of duty per 28 day roster cycle. An average of 14 days free of duty per 28 day roster cycle (over any 12 week period) across the total pilot complement;
(c) An average of 74 hours flight time per 28 day roster cycle (over any 12 week period) across the total pilot complement;
(d) Increased pilot productivity on a day to day basis (pilot productivity shall be measured in terms of flying time not duty time);
(e) Increased ability to recover from disruptions;
(f) Reduced downtime at airports;
(g) Minimise positioning;
(h) Introduction of the Preferential Bidding System (PBS) for improved lifestyle;
(i) Reduced standby coverage (aim to achieve less than 2%);
(j) Building ways to improve communication and facilitate change in a volatile and competitive environment;
(k) Recognising that economic sustainability creates and maintains employment for pilots;
(l) Creating career progression opportunities for all pilots;
(m) Recognising a relationship between remuneration and productivity gains; and
(n) Minimal variation in outcomes between bases.
Annual Salaries for Pilots
2.1.2.1 Annual salaries for captains covered by this Agreement will be as follows during the term of this Agreement.
737 Captain
July 2006 Inc. 3% in July 05 and 06 $141,184
July 2007 3% $145,420
July 2008 3% $149,782
July 2009 3% $154,276
July 2010 3% or > CPI (Max 5%) $158,904
July 2011 3% or > CPI (Max 5%) $163,671
Embraer Captain
July 2007 N/A $112,000
July 2008 3% $115,360
July 2009 3% $118,821
July 2010 3% or >CPI (Max 5%) $122,385
July 2011 3% or >CPI (Max 5%) $126,057
First Officers will be paid the appropriate percentage of a Captain’s annual salary as follows and in accordance with the effective dates of increase given to Captains:
(a) Level 1 - 55%
(b) Level 2 - 60%
(c) Level 3 - 65%
The criteria established for the above levels shall not be varied during the course of this Agreement without the agreement of the parties.
First Officer Salary Levels:
737 First Officer
July 2006
July 2007
July 2008
July 2009
July 2010
July 2011
Level 1 Annual Salary
$77,651 $79,981 $82,380 $84,851 $87,397 $90,019
Level 2 Annual Salary
$84,710 $87,252 $89,869 $92,565 $95,342 $98,203
Level 3 Annual Salary
$91,770 $94,523 $97,358 $100,279 $103,288 $106,387
Embraer First Officer
July 2007
July 2008
July 2009
July 2010
July 2011
Level 1 Annual Salary
$61,600 $63,448 $65,351 $67,312 $69,331
Level 2 Annual Salary
$67,200 $69,216 $71,292 $73,431 $75,634
Level 3 Annual Salary
$72,800 $74,984 $77,234 $79,551 $81,937
The above annual salaries include an allowance recognising the current South West Pacific / New Zealand international operation (June 2006).
The parties recognise the volatile nature of the airline industry. Should the future financial viability of Virgin Blue be a concern to the parties during the course of this Agreement, the parties agree to discuss the most effective means of ensuring Virgin Blue remains viable. This clause is only to be used as a last resort and with the specific purpose of ensuring the continued viability of Virgin Blue and the continuing employment of pilots.
The level of a First Officer will be based upon a series of parameters including total hours, hours on type, hours in two-pilot operations, qualifications and experience in high capacity operations. A First Officer will progress through the levels when the specified criteria are attained. Virgin Blue shall publish the required criteria.
Annual salaries include an amount for all public holidays, loadings, shift penalties and allowances unless specifically referred to in this Agreement.
Salary Allowances - Check Pilots, Training Pilots and Ground Instructors
Pilots performing training pilot functions will be paid in addition to annual salary a 10% loading on annual salary whilst performing such duties. Such pilots will be appointed for a minimum of six months. A Training Captain shall be given a minimum of 28 days written notice prior to termination of Training Captain duties. Any subsequent reappointment shall be for a minimum of a roster period and at the discretion of Manager Flight Standards.
Where a pilot is performing both check and training pilot functions that pilot will be paid in addition to annual salary a 16% loading on annual salary whilst performing such duties. Check Captains will be appointed for a minimum of two years. Check Captains shall be given a minimum of 3 months written notice prior to termination of their check captain duties. Three (3) month notice does not apply where check captain duties are terminated for disciplinary reasons.
All check captain duties will be fairly and equitably distributed between all Check Captains.
Check Captains shall be rostered personal flying sufficient to maintain proficiency.
Check Captains shall be able to bid for their rostered days off within the check pilot group prior to training being allocated. Check Captains shall then be able to bid in the PBS for their personal flying.
Pilots performing these duties will be notified in writing of the period for which the functions and additional allowances will apply. Otherwise the allowance will be paid during annual leave, sick or long service leave provided the pilot was engaged in such functions within 2 months of the leave being taken
Pay on a Day Free of Duty
Where a pilot agrees to and operates on a nominated day/designated day off/blank day, the pilot shall receive payment at the hourly rate specified in clause 2.3: Productivity Payment for every hour or pro rata hour flown, with a minimum of 5 hours pay per flight duty period or simulator/ground duty.
Any hours flown under this clause will not count towards the pilot’s productivity payment and no substitute day off shall apply.
Meals, Allowances and Accommodation
Flying over a Meal Period
A pilot on duty and operating an aircraft during the following meal periods will be provided with in-flight sustenance and beverages for:
Meal Time Period
Breakfast 0600 - 0800hrs
Lunch 1200 - 1400hrs
Dinner 1800 - 2000hrs
Late Night Supper Where a flight departs between 2300-0300hrs
All times are referenced to the local departure time.
During any flight duty period in excess of 3 hours operating pilots shall be provided with adequate sustenance.
Overnight Meal Allowance
The following allowances will be paid where the pilot overnights in the course of a pairing for:
Meal Time Period Allowance
breakfast 0600 - 0800hrs $21.30
lunch 1200 - 1400hrs $30.15
dinner 1800 - 2200hrs $42.25
In addition, an amount of $21.35 for incidental expenses will be paid for each overnight that occurs.
Endorsement on an Aircraft Type
The parties have discussed the possibility of initial endorsement training being conducted in house. Should that occur, the parties shall meet to determine specific related issues including but not limited to training salary and endorsement cost offsets.
Internal candidates who are selected to fly an aircraft type but do not yet have the relevant training or hold the relevant endorsement will be given the opportunity to obtain that training and endorsement on the following terms:
(a) Virgin Blue will pay all training and endorsement costs, which include allowances, accommodation and travel expenses (T&E Costs);
(b) The pilot who passes the training and endorsement requirements agrees to remain employed on the aircraft type for a minimum of 48 months from the date a pilot is cleared to line;
(c) The pilot who passes the training and endorsement requirements but who later resigns from Virgin Blue (other than for medical reasons or retirement) or who is dismissed by Virgin Blue for performance reasons agrees to repay the T&E Costs as follows:
100% of the T&E Costs if employment comes to an end within 1 year from the date the pilot is cleared unrestricted to line operations;
66% of the T&E Costs if employment comes to an end between 1 and 2 years from the date the pilot is cleared unrestricted to line operations;
33% of the T&E Costs if employment comes to an end between 2 and 3 years from the date the pilot is cleared unrestricted to line operations;
The T&E Costs can be recovered in part or in whole from any money owned to the pilot by Virgin Blue.