Without going into the details :
AIPA have asked for a 2.5% headline rate (less than CPI) in order to trade that money for longer term job security. There is more to it than that though, as AIPA have also asked for a change in travel entitlements and job security.
Due to the management "cutbacks" that were made a few years ago and the associated package renegotiation, people who have been in the company as little as 1 year can now boot a 25 yr pilot (and his family) off a flight under the staff travel scheme. Being a job where pilots spend a lot of time away from family, and sometimes try to offset this "lost time" by taking family members away with them, the situation has now reached the point where they can no longer take family away for fear of leaving an 8 yr old daughter or 11 yr old son in Bangkok alone, because they can no longer get a seat in the cabin (or a jumpseat - but thats another issue).
So AIPA have asked for one firm economy seat (upgradable space avail) each year per crew member in order to guarantee that their family will not be left behind under these circumstances. QF have 'interpreted' this at the FULL FARE cost of a first / business seat for each crew member once per year. I guess this is their worst case scenario, but this is a large part of their 26% pay increase claims.
The fact is that in terms on money, AIPA have asked for 2.5%, and are yet to negotiate any increased efficiencies by us which will lead to savings for QF.
The second part of the claim is for job security. AIPA have said that if QF want to take a QF service and replace it with a JQ service the next day, then they have to pay QF rates to the crew or negotiate with AIPA. There is nothing to stop them from starting up JQ/other entity flying a route 12 months later. This also applies to code sharing.
In addition, if QF want to start up an overseas QF basing using overseas crew (a la Jetconnect), then they have to pay QF rates to these pilots to lessen the incentive to start the base. Legally, AIPA cannot stop QF from starting these basings, but they can ask that they are paid no less than QF rates.
QF have simply gone and costed the entire QF group getting a pay increase to QF mainline wages and placed this in the costings of AIPAs claim.
QF mainline pilots are quite happy to fly to more efficient rostering rules, and to only have a 2.5% pay increase in the current EA (EBA), but this will need job security provisions to be inserted into the contract in order to preserve the jobs long term.
It is dodgy accounting no matter which way you look at it. But then again, QF are pretty good at that...