Heres the letters the pilot councils wrote to the company. First bit comes from LC of AFAP:
To: ALL EASTERN & SUNSTATE PILOTS
Date: 7 APRIL 2008
Subject: Letter to management
We have attached a copy of a letter sent to the management of QantasLink
covering Eastern Australia and Sunstate operations.
The letter came about following discussions within the Pilot Committees of both
Companies and the Federation delivered on their behalf the issues we feel need to
be addressed to retain and attract pilots.
We are not making a claim as such as you will be aware that in Eastern we are in
an existing EBA and Sunstate is soon to commence. The future we believe will
need to be addressed to stop the growing exodus of experienced pilots to other
airlines.
It is entirely up to the Company if they see value in what has been suggested but
equally we are being proactive to ensure that they are aware of the issues being
discussed internally. Many of you have been weighing up your options for the
future and a number on the basis of whether to stay or go.
We asked the Company to respond by last Friday and have now been advised that
written communication will be sent during this week.
The response will be forwarded to you all once received.
Any further questions should be directed to me on xxxxxxxx
Regards
The letter:
20th March 2008
Mr Narendra Kumar
Qantas Executive General Manager Regional Airlines
Level 10 Airport Central Building,
Cnr O’Riordan and Robey Streets
Mascot, NSW, 2020.
Dear Narendra,
Re: PILOT RETENTION AND ATTRACTION
We are writing this letter on behalf of the Australian Federation of Air Pilots (AFAP),
Eastern Australia Airlines Pilot Committee (EAAPC) and the Sunstate Airlines Pilot
Committee (SAPC) to express a view toward the future for QantasLink operations.
It is not a claim in the industrial sense and has been constructed through input by the
respective pilot bodies. We trust it will be given serious consideration as part of the
process to ensure the long-term operation of QantasLink both as a business and our
careers.
There is little doubt from the employees of QantasLink and the communities that they
serve that the Qantas Group is committed to maintaining the current destinations with
a view to upgrade their aircraft offering increased capacity and in some
circumstances, frequency. The commitment to the expansion plans for the future
cannot be questioned with the much publicised $850 million in aircraft acquisitions.
What is in doubt is the commitment to the individuals that will be required to crew
not just the future expansion plans but simply maintaining the current schedule. The
retention package offered by the Company, on average per year, $5,000 for a Captain
and $3,300 for a First Officer, is in our view, woefully inadequate when compared to
the current market conditions.
The $40,000 Captain Retention scheme, although appreciated, does not ensure a
commitment to the individual as it can and will be removed at the Company’s
discretion. The secondary effect of this scheme has been to alienate senior First
Officers. Currently there are only six Eastern and approximately thirty Sunstate First
Officers that are eligible for a command upgrade and are excluded from the package.
These future Captains, integral to QantasLink’s future expansion and viability, are
actively seeking alternate employment. It will be experienced First Officers, not
inexperienced First Officer trainees that will dictate the future of QantasLink.
For a pilot weighing up his or her options the opportunity to lock in a higher paying
job to provide for their family is too difficult to resist when compared to their current
salaries and lifestyle offered by QantasLink.
Below are seven points that the AFAP and both pilot group committees believe will
effectively stem the current unsustainable attrition rate, but also attract pilots looking
for the challenges and benefits of becoming a regional airline pilot.
Retention Measures
Base Salaries
Dash 8 100/200/300 Captain: $100,000
First Officer: $75,000
Dash 8 400 Captain: $120,000
First Officer: $82,000
Figures provided are for a Year 1 pilot
10 year scale to increase by 2% per annum
Standard Qantas Group Corporate Policy increase of 3% apply per annum
Days Off
Minimum of 10 days off per 28 day roster
Days off to be paired unless the individual agrees otherwise
Additional Work Recognition/Grey Days
59 flight hour trigger for additional incentive per 28 day roster.
Hour trigger is used in conjunction with a minimum of 2 Grey Days per 28
day roster.
Remuneration per hour to be negotiated but it would be expected to be less
then double pay as per the current day off work practice based upon the rest of
the package improving.
Retention Bonus
To be decided by the Company. Dictated by market conditions and World’s
Best Practice.
Superannuation
10% of base salary (and additions eg. Training Captain increase) and
Retention remuneration.
Progression into a Jet Operation
Qantas Mainline (as per the current cadet arrangement)
Jetstar
Jet Star Asia
Jet Connect
Australian Air Express
Expansion of QantasLink into narrow body jet operations
National Jet (QantasLink)
Explanation of the Retention Measures
Base Salaries
Below are some current base salaries in the industry.
Virgin Blue
B737 Captain: $174,000
First Officer: $113,000
Embraer Captain: $139,000
First Officer: $88,000
Surveillance Australia
Dash 8 Captain: $100,000 (plus retention/performance bonus $50,000
per annum increasing to $100,000 per annum in three years)
First Officer: $60,000 (plus retention/performance bonus
$30,000 per annum increasing to $50,000 per annum in three
years)
Royal Flying Doctors QLD Branch
Super King Air Captain: $95,000 (October 2008)
(10 seater turboprop) Captain: $109,000 15% increase (October 2009)
Captain: $125,000 10% increase (October 2010)
Sharp Airlines
Metro III Captain: $75,000-95,000
(19 seater turboprop)
Skytrans
Dash 8 Captain: $100,000
First Officer: $58,000
Titan Captain: $60,000
(10 seater piston)
Base Salary – Retention
By viewing the above salaries and comparing them to the current remuneration
offered by QantasLink it is clear to see that the Company has fallen well below the
market conditions in the industry. There is no incentive to either stay or apply as an
experienced pilot with the current salaries.
Traditionally QantasLink Captains did not apply to Virgin Blue because of three
obstacles.
1. Pay cut. B737 First Officers would earn less then their package.
2. Lifestyle. Three-four nights away from their home base and long duty hours
with little difference in days off.
3. Up front payment for endorsement costs
Virgin Blue have addressed all three issues, now offering an attractive salary, upgrade
possibilities, additional days off beyond what QantasLink offers and a salary sacrifice
scheme over two years to pay for the endorsement. The facts are that Virgin Blue is
aggressively recruiting QantasLink Captains with the view to upgrading them on the
Embraer within 6-12 months. With the obstacles removed there is no justification for
QantasLink pilots to not apply.
Base Salary – Attraction of experienced pilots
With so few First Officers having the experience required to take command of a
QantasLink aircraft and when considering a normal attrition rate, retirements and an
influx of First Officers with no previous experience the greatest challenge facing the
Company is pilot experience. Regional Airlines such a REX and ****** offer
experience levels that can ensure the Company’s future. Currently there is no
incentive for a Captain at REX, for instance, to apply to QantasLink because s/he
would take a pay cut of approximately $24,000, from $75,000 to $51,000 and no
guarantee of a base of their choice. With the proposed salaries, a guarantee of their
choice of base, and an understanding of a fast track command QantasLink can ensure
not only that a source of experience but provide the applicable experience in the
cockpit with the introduction of First Officers with no previous experience.
10 Days Off
There are two reasons to support this proposal.
Over the last few years there has been a reduction in lifestyle due to:
8/9 days off reduced to 8 (Eastern)
Overnight shifts provided approximately 8 half days off.
e.g. previously: Day 1 of an overnight signed on at approx 14:30 and Day 2
signed off at 11:30.
Currently: Day 1 signs on at 10:30 and Day 2 sign off at 14:30 (or later)
Reserve callout varied but approximately 50% callout probability
Currently/recently: 100% callout or no Reserves rostered.
Previously a pilot could expect to have approximately 10-13 days off which justified
the smaller salary offered as lifestyle provided incentive.
The major recruiter of QantasLink pilots now and for the foreseeable future is Virgin
Blue. They guarantee a minimum of 11 days off with an additional 2 Grey days.
A recent Eastern pilot now working for VB has advertised that he had 15 days off in a
28 day roster. VB was originally not an attractive option for a QantasLink Captain, in
terms of lifestyle, because of 3-4 night trips away. They have offset that with
additional days off, effectively removing the lifestyle barrier.
Additional Work Recognition/Grey Days
Grey days are used by some airlines to provide a pilot the option of additional days
off or an incentive to work more. Grey Days are used in conjunction with an hourly
cap per roster. Qantas Short Haul Pilots use a 59 hour cap per roster (approx 1
month). Any additional flight hours flown, whether they are rostered or incurred on a
Reserve or Grey Day would receive additional remuneration per additional hour flown
in excess of 59 hours.
Apart from offering a pilot an attractive lifestyle/work option it also rewards a pilot
for working harder (which is expected in the current climate) if longer duties or
maximum Reserve callout is utilised. Currently a pilot who flies 95 flights hours a
month would not receive any additional remuneration than a pilot who only flies 50
hours. This is not in line with market conditions at many other companies.
Retention Bonus
It is obvious that the Command Retention Scheme currently offered is ineffective.
Surveillance Australia’s offer only serves to attract pilots or at the very least motivate
a QantasLink pilot to look elsewhere for a package that matches the market
conditions. The Company needs to seriously reconsider its position in this area. The
AFAP and both Pilot Committees want to work with the Company on arriving at a
reasonable and attractive figure but ultimately it will be the Company’s management
reaction and/or proactive decision making that will determine our future.
Superannuation
There are several areas in the Qantas Group that now offer their employees 10% super
(including Sunstate). Equalising the QantasLink pilots to 10% and basing it on salary,
additions and retention remuneration would place QantasLink pilots in line with
Surveillance Australia, for example, to ensure World’s Best Practice for the country’s
premiere regional airline.
Progression into a Jet Operation
Progression into the Qantas Group has been a point of contention for QantasLink
pilots for many years. Offering the possibility of progressing into a jet operation
would be very attractive to a percentage of our pilots. Some form of arrangement or
guarantee after a term of employment with the prop fleet is essential to curbing the
attrition rate at its unsustainable level. The vast majority of the pilots that would be
interested in this arrangement have at some point completed successfully the
psychometric testing and performed numerous simulator cyclic tests. The question a
QantasLink pilot often asks is “If I am good enough to fly the Qantas brand into
regional ports in challenging conditions then why I am not good enough to fly the
Qantas brand elsewhere in the Group?” The question continues to go unanswered.
We believe that expansion of our current operations into narrow body jet would give
incentive to stay for the future. This occurred previously in Southern with BAe-146
operations and could be replicated today.
QantasLink has already reached the crossroads; its future growth depends on retaining
experienced crews, much the same as Mainline or JetStar. The recent schedule down
turn and further announcements are disappointing and worrying for the employees and
management alike. With additional aircraft arriving in June and Virgin Blue looking
to exercise their options on the Embraer there is no more time for procrastination or
inaction. We strongly urge the Company to consider these proposals and we fully
understand that it will solely be the Company who decide whether this Company
grows or declines. The decisions moving forward will affect not just profitability but
also the vital link to the regional communities that require us to provide an integral air
service.
We appreciate your consideration of the above points and trust that it will be given
opportunity for reflection. As stated at the outset we feel that if we do nothing that our
employment and connection to QantasLink will be lost.
The pilot groups are constantly asking us for reasons to stay rather than consider other
employment opportunities we would request an acknowledgement to this letter and
any response by 4th April 2008.
Yours faithfully,
Lawrie Cox
Manager – Industrial Relations
Copies:
Mr Leigh Clifford AO – Qantas Airways Chairman
Mr Geoff Dixon – Qantas Airways CEO
Mr Paul Lidbury - Manager QantasLink Operations
Captain Mark Davey - Manager Flight Operations QantasLink
Of course the company didn't worry about replying in the time asked because there ain't a pilot shortage!
Part 2 to follow.
See youse!!!!!!!!
