Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

New JQ Contract

Old 14th May 2011, 02:20
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New JQ Contract

From AIPA:

Jetstar declares war on its pilot group, collective bargaining and the Australian Industrial Relations System

In a cynical and underhanded, though widely anticipated move, Jetstar has announced that it no longer intends to employ pilots on Jetstar Airways Pilots Agreement 2008. And, when they did decide to talk to us, the Jetstar pilots, about it, they refused to do so in the presence of our legal representatives – representation we are legally entitled to.

Instead, in the true vein of contempt and divisiveness for which Jetstar management has become synonymous, the Company has announced that future employment of pilots will be outsourced to a newly created “shell company”, known simply as ‘a Jetstar Group Company’. In actual fact, it is an Australian registered company called Jetstar Group Pty Limited.

The proposed terms and conditions of the ‘Jetstar Group Contract’ are shocking to say the least. Pilots are ostensibly employed as ‘part time pilots’ but are essentially expected to work for, or to be available to work for more days per month than current Jetstar pilots employed on the EBA. The contract is supposedly based on the Air Pilots Award 2010, however ‘Blind Freddy’ could see that the terms and conditions are markedly inferior in practical terms, due to its ‘part time’ nature!

As a brief summary, for the Jetstar Group Pilot Contract, the pilots are told that they are initially to be ‘based’ in Australia. The Company can, at its absolute discretion, move them to any other base on its network without warning or notice and they will be paid there on ‘local terms and conditions’.

These are NOT Australian pilot positions, but Jetstar can use these pilots to
undermine EBA pilots’ terms and conditions of employment. Jetstar currently has a shortfall of pilots in both New Zealand and Singapore. If it suits them (and at the moment it definitely will suit them) these pilots WILL be force-moved to one of these countries and have no legal recourse to decline, except for “doing a runner”- which comes with SIGNIFICANT penalties.

They will be paid $101 per block hour if they are actually employed in Australia.

There is no guarantee that they will not be shifted overseas at any time on
substantially lower terms and conditions!

They are guaranteed a minimum of 150 block hours per quarter (600 block hours a year) for these ostensibly ‘part time’ positions. There is no guarantee of a pay rise indefinitely.

Australian based pilots are guaranteed a minimum annual salary of AU$60,600.

There is no seniority list, so not only can these pilots be used to take hard earned positions away from EBA pilots, they can also be pit against one another, with only those toeing the company line with the most zealous self-depreciation being considered for favours such as promotion or simply not being sent overseas on even less money.

With regards to rostering, they are guaranteed to be paid for 150 block hours per quarter. They have 9 days off per month.

If the Company chooses to roster them for 50 hours per month, and assuming an average block time of 5 hours per day for domestic operations, this will leave these pilots with 10 days’ work per month. They have 9 days off so the remaining 11-12 days per month WILL BE SPENT ON STANDBY. They may be classified “PART TIME” but the Company will own their souls FULL TIME.

Alternatively, the Company may choose to roster them for 75 block hours for month 1 and 2 (with 6-7 standby days) and leave them on standby (21 or 22 days of it) for the entirety of month 3. The reason for this is to cover any schedule disruptions, sick leave, etc from EBA crew and to prevent existing EBA crew any hope of achieving overtime or day off payments.

That being said, it is not in the Company’s interest to have these pilots working much over their minimum guarantee hours as this gives them ‘maximum flexibility’ and allows them to build up an alternative labour force to offset any potential industrial action that may occur when our EBA expires in 2013.

In addition to this, for their first year of employment the pilots can be dismissed for any reason by the Company, giving them 2 weeks’ notice (see clause 17.1). In this case they will have to pay back the grossly inflated $40,000 for their A320 endorsement, and will of course be out of a job.

There are many other pitfalls of the Jetstar Group Contract but we have merely touched on some of the most glaring and obvious ones.

These prospective employees have also been furnished with a document called ‘the Jetstar Group Policy’. It is very important to understand that this policy is absolutely binding on the employees, but is in no way binding on the Company!

The pilots’ obligations:

2.1. Employees must be familiar with this Policy. Where this Policy places
obligations on employees, you must comply with them. A breach of this Policy may warrant disciplinary action, up to and including termination of employment.

As opposed to the Company’s obligations:

2.2. From time to time, amendments to this Policy will be required to reflect
changes to the Company’s operational requirements and any legislative changes. The Company may review, vary, add to or withdraw this Policy (or any part of it) from time to time in its absolute discretion.

2.3. To avoid doubt, this Policy and any obligations on the Company set out in it do not form part of an employment agreement, and are not contractually binding on the Company.

‘Jetstar Group Company’ pilots will be subjected to a pay for endorsement scheme (it is not a bond unless they leave). This entitles the Company to charge them, or deduct from their salary AU$40,000 for an A320 endorsement (possibly more in certain cases). Alteon currently charges approximately $29,000 for these endorsements for an individual ‘off the street’. Those deducting from their salary may be able to salary
sacrifice over a period of no more than 33 pay periods (months). If the individual leaves the Company or is dismissed for any reason (though it could be no fault of their own) then they have to pay back the outstanding amount.

After paying back endorsement fees (AU$1,212 per month or $14,545 per annum), and based on the minimum guaranteed salary, pilots can expect to earn the following gross annual salaries for their first 3 years of employment:

Gross Salary After Deductions: AU$46,056

Can they afford to live on this salary? Do they want to be put in a position where they are forced to move to Singapore or New Zealand (at their own cost) to live on potentially much lower salaries? How does this compare to their current position?

What does this mean for Jetstar’s EBA pilots?

Obviously the Jetstar Group Contract is a direct attack on the EBA in particular, and on the concept of collective bargaining in general.

The first and most obvious effect on EBA pilots will be a loss of overtime (extra flying allowances) and work day off payments as the Company will simply transfer this flying to a cheaper group of pilots, half of whom will be on standby.

Secondly, this move will pave the way for the Company to effectively force EBA pilots off their current conditions to gain access to promotions or desired bases, if they can find a way of getting around the Fair Work Act’s “Transfer of Business” provisions.

Thirdly, the creation of a secondary, shadow contract workforce will provide the Company with a powerless group of alternative labour should we vote to engage in industrial action in order to seek fair and reasonable terms and conditions under our next EBA when it comes up for renewal in 2013. This will drastically limit our ability to negotiate for fair terms. The Company may also use the shadow workforce’s vote should they need it to get a truly substandard agreement over the line (as they did last time). More likely, they will simply deliberately bog down negotiations as the contract workforce can be used to offset most industrial action and therefore the need to actually negotiate a new EBA will evaporate.

Further down the line, these Jetstar Group pilots are required by their contract to abide by the following:

4.2 You are required to operate Company or Client aircraft as directed by the
Company. You must carry out the duties of your role as lawfully directed and at places reasonably requested by the Company.

Therefore, if Qantas pilots are unsuccessful in obtaining the job security
provisions they seek in their next EA, it doesn’t take a genius to figure out that either these pilots (or another group on equally shameful conditions) will be used to undermine their employment.

What can AIPA and AIPA members do about this?
Firstly, it is important to remember that the Company has chosen its timing very carefully (and cynically after just announcing a big round of upgrades to the current pilot group with the objective of placating them and minimising individual reprisals to this attack).

Neither pilot union can organise industrial action against this move because our EBA has not expired. That is why the Company has chosen this as the time to strike against us. Individuals cannot engage in industrial action for the same reason.

AIPA will be pursuing this matter vigorously in court.

The difference between industrial action and non-industrial action is subtle, but important.

Knowing one’s EBA, Day of Operations Agreement and Roster Build Agreement is not industrial action. Acting in one’s own best interest as an individual, whilst complying with these agreements, is not industrial action. If one’s own best interests happen to be contradictory to the Company’s but within the scope of their employment agreement, and one acts as an individual to satisfy both their own interests and the obligations contained within that agreement, then that is not industrial action.

Pretty much everything else is.

Know your rights, use them. Know your obligations, respect them.

Do not feed the jaws that bite you.
P2T2 is offline  
Old 14th May 2011, 02:36
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That is purely disgusting. There is nothing "part-time" about the part time contract.
bubble.head is offline  
Old 14th May 2011, 02:46
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Having seen said document the release by AIPA is a fair summary of the situation.

There are also some other significant deficiencies which have not been mentioned. I was intending to post the text of the contract onto this thread over the weekend however unless the reader has a good working knowledge of the award, other than the rate of pay it will serve little purpose.

The AIPA and AFAP summaries paint a much better picture.

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The Kelpie
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Old 14th May 2011, 03:00
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Army of One

I'm sure many of you have seen this before but I thought it was suitable to repost. This was originally posted on PPRuNe in 2002 in reference to an American airline. I guess we're a few years behind but have now caught up.

I am an Army of One (or 2, or 300, ...)

I am an army of One - A Captain in the Continental Airlines army.
For years I was a loyal soldier in Gordon's army. Now I fight my own war.
I used to feel valued and respected. Now I know I am mere fodder.
They (CAL) used to exhibit labor leadership. Now they exploit legal loopholes.
They used to enjoy my maximum. Now they will suffer my minimum.
I am an army of One.

I used to save CAL a thousand pounds of fuel per leg; finding the best FL, getting direct routing, throttling back when on-time was made, skimping during ground ops, adjusting for winds, being smart and giving the company every effort I could conjure. Now, it's "burn baby, burn".
I used to call maintenance while airborne, so the part would be ready at the gate. Now, they'll find the write-up when they look in the book.
I used to try to fix problems in the system, now I sit and watch as the miscues pile up.
I used to fly sick. Now I use my sick days, on short notice, on the worst day of the month.
I am an army of One.

I used to start the APU at the last possible moment. Now my customers enjoy extreme comfort.
I used to let the price of fuel at out-stations affect my fuel orders. I still do.
I used to cover mistakes by operations. Now I watch them unfold.
I used to hustle to ensure an on-time arrival, to make us the best. Now I do it for the rampers and agents who need the bonus money….but this too may change.
I used to call dispatch for rerouting, to head off ground delays for bad weather. Now I collect overs, number 35 in line for takeoff.

I am on a new mission - to demonstrate that misguided leadership of indifference and disrespect has a cost. It's about character, not contracts. It's about leading by taking care of your people instead of leadership by bean counters (an oxymoron). With acts of omission, not commission, I am a one-man wrecking crew - an army of One. My mission used to be to make CAL rich. Now it's to make CAL pay.

When they furlough more pilots than the rest, pilots that cost them 60 cents on the dollar - I will make them pay.
When they under-staff bases and over-work reserves to keep pilots downgraded, down-flowed, or downtrodden - I will make them pay.
When over-booked customers are denied boarding system wide, while jets are parked in the desert - I will make them pay.
When they force pilots, who have waited 12 years to become captains, to be FOs again - I will make them pay.
When they ask CAL pilots to show leadership at Express, and then deny them longevity - I will make them pay.
When they recall F/As for the summer, just to furlough them again in the fall like migrant workers - I will make them pay.
When they constantly violate the letter and spirit of our contract - a contract that's a bargain by any measure, and force us to fight lengthy grievances - I will make them pay.

My negotiating committee speaks for me, but I act on my own. I am a walking nightmare to the bean counters that made me. Are you listening? This mercenary has a lot of years left with this company; how long can you afford to keep me bitter? I'm not looking for clauses in a contract, I'm looking for a culture of commitment and caring. When I see it, I'll be a soldier for CAL again. Until then, I am an Army of One…And I'm not alone!
Fonz121 is offline  
Old 14th May 2011, 03:03
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They must be finding it a little hard to find people. The chief pilot is ringing applicants to try and change their mind in regards to the new contract. Must not have to many takers from the hold file.
I wonder why....
Bone MAJ is offline  
Old 14th May 2011, 03:13
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A part time (4 days per week) railway guard (i.e the guy who gives the driver the bell-signal to open and close the train doors/assist with loading wheelchair passengers, while reading a book between stations - no formal qualifications beyond paid company provided training), earns about the same. Queensland Rail were advertising for it recently.

It's a govt job, with great super, and you're never too far from home.

I could get a better deal as a flight attendant with a budget airline - my friend currently gets a better deal working (without formal qualifications) in a call centre.

What a joke!
ozangel is offline  
Old 14th May 2011, 03:15
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No point getting chief Pilot to ring applicants as if they all feel the same way I do about him he will be identified as a puppet of the management with no credibility as a pilot!!

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The kelpie
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Old 14th May 2011, 03:35
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The CP showed his true colours in 89.

I doubt he has found new spots since then. After all, he is the CP for a reason and its not to be a friend of the pilots!
bonvol is offline  
Old 14th May 2011, 03:35
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The chief pilot personally ringing applicants!!! How embarrassing is for you Mark, to have to personally grovel to applicants to get your bonus. Did you promise your masters that you could be one of the "club" and screw your fellow human beings into the dust for a few pieces of silver? How do you sleep at night? Your actions will be remembered in aviation folk lore, your betrayal will forever haunt you, with the stench of greed gone mad.

Last edited by breakfastburrito; 14th May 2011 at 05:39. Reason: lore not law!
breakfastburrito is offline  
Old 14th May 2011, 03:53
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Ryanair type contract.God bless the irish!!!!!
Old 14th May 2011, 04:16
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What a croc , the company has acted appropriately with all the antagonism from AIPA. the top few in seniority that get everything they want all the time without merit are shit scared of losing there advantage when the new widebodies come. Hopefully the positions will go to new contracted pilots with loads of ex perience not just a bunch of spoilt brats. You brought this on yourselves. If you dont like it then leave, theres many other jobs that pay more.
Rabbitwear is offline  
Old 14th May 2011, 04:17
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No No No No No No No
I will not accept your inferior offer Half Star sheesh !!
May as well raffle of the 50 positions at the local club or place the contracts
in a cornflakes box.
Maybe a recruitment drive needed in India to pick up all the fake Pilots out of jobs.
Swimbetweentheflags is offline  
Old 14th May 2011, 04:18
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I don't even think the most idiotic experienced Pilot will take this shit sandwich. For those that do, scab lists are already being talked about.

If they can't get the numbers you know what will happen? Crying poor to the minister and justification for cadet schemes and 457 visas.........

They are distracting us on several fronts right now while they sneak up and butt rape us from behind.

It's all smoke and mirrors for the real agendas.

I hope these mongrels are on the one that buys the farm
The Green Goblin is offline  
Old 14th May 2011, 04:30
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Aaaahhhhh The Chief Pilot...

I still remember (1) of his quotes in the late 90's..

"There's no money in freight!!"
"Oh ok Mark, but why are there X different Freighter flights from SYD, Y out of MEL, Z out of BNE every day?"
"Listen lad, believe me, there's no money in freight!!"

boocs is offline  
Old 14th May 2011, 04:36
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I can see the benefits for Jetstar on this issue - particularly if they are going to be basing their pilots in NZ.

Under NZ law a contract maybe signed to which instead of being given paid leave (annual leave, sick leave, maternity leave etc) the company may provide an extra percentage over and above your salary.

So if you are earning $40,000 a year, the company may give you an extra 15% and you don't have any leave. Of course most respectable companies will still provide the leave benefits for part time employees, but we're not talking about a respectable company.

This may be an angle they are pushing, by providing a part time contract - if you work you get paid, if you want time off, we don't have to pay you.

Good luck to those signing it! You're being well and truly shafted..
empacher48 is offline  
Old 14th May 2011, 04:37
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From 'Pilots Protest as Jetstar alters new Staff terms, Steve Creedy, The Australian, 14/05/2010';

'Jetstar spokesman Simon Westaway denied that new staff would be disadvantaged by the contract, and said it was comparable with existing agreements.'

If it is comparable with 'existing agreements', and you are NOT screwing people over with this scam, than why introduce it at all, Mr Westaway?
h.o.t.a.s. is offline  
Old 14th May 2011, 04:48
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Mr Buchanan—No, we are saying that the first cadets that have come on are working in New Zealand and they will get paid an average salary of between NZ$64,000 and NZ$71,000 based on the current roster builds that we are seeing in our pilots in New Zealand. We said an average salary of NZ$67,000 versus the New Zealand average salary of NZ$39,000. When they are working in Australia, they are on an Australian contract and they get paid around $87,000.
Senate Inquiry into Pilot training, March 31, 2011 page 16 (my bold)
Is figure net of training costs? Contempt of the Senate?

Mr Buchanan—From Senator Milne, question 3, we provided on notice an indicative salary range for a Singapore-based crew member would be in the order of $36,000 to $46,000 and an indicative salary for an Australian-based cabin crew member would be in the order of A$50,000 to A$69,000.
Senate Inquiry into Pilot training,March 31, 2011 page 37 (my bold)

Once again, net of "training costs" a pilot on this contract will need to fly at least 872 hours per annum, to earn more than the most expensive indicative salary for an Australian based flight attendant.
breakfastburrito is offline  
Old 14th May 2011, 05:33
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Personal Responsibility

I'm not a regular contributor here but this is just too much. It's time for individuals to take responsibility, and be held accountable, for their own actions. Yes, management are a bunch of c**ts for pushing this contract out. Yes, the CP is a c**t for doing his master's bidding. However, it is individuals who will make this offer stand or fall. Those who joined Jetstar when it began defended their actions- needed a job, any job; had to pay the mortgage; no other option; etc,etc. Years later, after the horse had bolted, we realised the error of our ways and implored these pilots to join AIPA and be part of the 'group' solution to try and stop the rot. Not this time. AIPA and AFAP should pass resolutions that anyone accepting these positions is banned from membership. We will not support you. We will not defend you. Ever. As individual pilots we should take a stand. We often lament the industrial strength seen in other occupations. What other professional group would stand for this? We must make a stand.

Anyone reading this who is considering accepting one of these contracts- If you fly with me:

1. It's not your sector. Ever. Your recency/currency is your own problem.

2. I don't care what you think about the fuel order, or any other decision I make.

3. Gear up, gear down, flaps, etc. is all you can expect to hear from me.

4. I'll be joining my mates at the bar for drinks and dinner. You aren't invited and you won't be welcome. See you tomorrow morning.

5. Any mistakes you make, and I do mean any, will be documented in the post flight report I send. You want to send one on me? Be my guest, I've made it to my final rank.

One of the great things about aviation is fellow pilots. Regardless of the whinging and banter on this website, pilots are generally good blokes and great to have a beer with. We share a private understanding and history. You are not one of us and you never will be.
TineeTim is offline  
Old 14th May 2011, 05:48
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Pretty harsh mate, but why let it get that far?

Well documented that JQ Capts have been standing down these casual F/A's during the preflight briefing for lack of basic knowledge.

How long will it be before a JQ Capt stands down an F/O for basic lack of knowledge?

waren9 is offline  
Old 14th May 2011, 05:55
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What a croc(1) , the company has acted appropriately with all the antagonism from AIPA. the(2) top few in seniority that get everything they want all the time without merit are shit scared of losing there(3) advantage when the new widebodies come. Hopefully the positions will go to new contracted pilots with loads of ex perience(4) not just a bunch of spoilt brats. You brought this on yourselves. If you dont(5) like it then leave, theres(6) many other jobs that pay more.
Troll alert. However would likely make a great candidate for the job. No fewer than 6 spelling\punctuation errors in such a small paragraph. Pure genius.
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