20 buyers now circling Virgin Australia
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It is broader than that. The tech stack investment for Velocity is about CX improvement and 'big data' analytics maturity.
I have not said technology will be used to improve rostering specifically. I have said technology can be deployed to 'reduce labour needs and improve productivy/capability'. RPA, for example, can dramatically reduce back-office functions. Other technology solutions may remove or reduce labour requirements/specialisation. Bain has access to global competencies and best practices. They will leverage this advantage within VA.
Originally Posted by coaldemon
If the work rules are difficult to program there isn't any technology on the market that will make the rosters miraculously work. I suspect Bain will be going for the old exemption type Agreement. Most flexibility for the least cost.
I have not said technology will be used to improve rostering specifically. I have said technology can be deployed to 'reduce labour needs and improve productivy/capability'. RPA, for example, can dramatically reduce back-office functions. Other technology solutions may remove or reduce labour requirements/specialisation. Bain has access to global competencies and best practices. They will leverage this advantage within VA.
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I see this as an 'optics' play from Bain. The TWU are also in trouble as their 'numbers' continue to fall and the influence they can have at the airlines. The EA's at VA will need sharpening aka 'improved productivity'. This will be interesting to watch from the side on how this goes. VA needs to reduce their fuel-excluded cASK dramatically for V2.0 to be a success.
Bain’s definition of a successful V2.0 would be one that can turn $3.5B into $7.0B in 3-5 years, floating an airline onto the ASX that they will have cleverly made “look good” on paper, but may actually not be.
The employees definition of a successful V2.0 would be one that survives, of course, but also provides a decent job on decent conditions.
Good management is required. Expecting EBA’s to be slashed does not necessarily need to be part of the process. Sure, find efficiencies where possible. Maybe the office head count needs to be tightly controlled - that is a far easier way of reducing CASK’s than attacking the essential front-line workers.
I agree, it will be very interesting to watch. On the other side of the fence, QF keeps talking about seeking EBA variations, although no details have yet come to light. Stand down provisions seem to provide all the flexibility they have needed to date.
Maybe instead of Carla they could recruit an ex South West executive... a classic example of a raging success without treating employees poorly.
Last edited by Derfred; 31st Aug 2020 at 09:47.
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As we know - private equity typically focuses on fixing broken business and selling them for a profit. Also known for causing havoc and worsening a business for example, Toys 'R' Us had $1.86b of debt pre-Bain et al. Post buy-out, they were loaded up with $5b of debt and eventually collapsed. I like this synopsis from the Atlantic:
I wonder if Bain will do a sale/lease-back exercise of the owned 73's (once the market returns)...
'Private-equity takeover is akin to a family’s buying a house: A firm contributes what is essentially a down payment using its own funds and then finances the rest with debt. But in the case of a buyout, the firm doesn’t have to pay back the mortgage; instead, the company it bought assumes the debt. Private-equity firms enjoy the misperception that they swoop in and save struggling companies from the verge of ruin. They’ve long held the promise of benefiting these companies through close monitoring—and debt, the theory goes, should impose discipline on managers. That’s the model followed by a few specialty firms, but it is far more common for private-equity firms to seek moderately successful targets where they see an opportunity to increase profit margins. After a few years of slimming costs and boosting revenues, the goal is to off-load the company, by either helping it go public or selling it'.
I wonder if Bain will do a sale/lease-back exercise of the owned 73's (once the market returns)...
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That is probably key to any medium to long term survival. It’s clear a entire new team is needed here. I don’t know when Paul’s number is up but like most of these things I would hazard a guess and say, not long into the new year.
The most logical person around to run this is probably Campbell Wilson. Having rumored lost out to Foran for the Kiwi carrier, it’s still closer to home.
The most logical person around to run this is probably Campbell Wilson. Having rumored lost out to Foran for the Kiwi carrier, it’s still closer to home.
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Mate, if you can’t trust Bain, who can you trust?
Those pesky unions just really don't want Carla on board.
But trust me - she's a changed person, a mere shadow of her former combative self - ready to work with all and sundry. Just ask her.
At least - that's the story she'll try and tell. But a leopard never changes it's spots.
Good luck in keeping her out.
But trust me - she's a changed person, a mere shadow of her former combative self - ready to work with all and sundry. Just ask her.
At least - that's the story she'll try and tell. But a leopard never changes it's spots.
Good luck in keeping her out.
What "power" do the unions really have/ They have no skin in the game now and Bain doesn't need them at all. If they threaten to withhold labour then who wins at this stage? Not the employees but I guess the union execs get to keep their big salaries etc etc win, lose or draw.
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I don’t think anyone suggested anything about unions withholding labour.
Unions will be sitting on the other side of any EBA variations Bain may desire.
They do not have to agree, and as always, the employees will have the final say. They may be guided by the unions in their vote.
So yes, the unions do have a lot of say in Bain’s future cost of doing business.
There may always be a threat of outsourcing, but that will be up to the unions (and the employees) to weigh up during negotiations.
Unions will be sitting on the other side of any EBA variations Bain may desire.
They do not have to agree, and as always, the employees will have the final say. They may be guided by the unions in their vote.
So yes, the unions do have a lot of say in Bain’s future cost of doing business.
There may always be a threat of outsourcing, but that will be up to the unions (and the employees) to weigh up during negotiations.
short flights long nights
Why is that, Sunfish?
Sops, I know a couple of chartered company secretaries. They live by their reputation. It’s all they have.
On reflection, the Company Secretariat workload over the next few years is going to be extreme when you consider all the corporate entities that make up Virgin. The work is exacting from the point of view of timeliness and accuracy with the prospect of all sorts of legal land mines exploding if you get it wrong. She may have good reasons to want to pass on the work to another.
On reflection, the Company Secretariat workload over the next few years is going to be extreme when you consider all the corporate entities that make up Virgin. The work is exacting from the point of view of timeliness and accuracy with the prospect of all sorts of legal land mines exploding if you get it wrong. She may have good reasons to want to pass on the work to another.
Last edited by Sunfish; 31st Aug 2020 at 19:38.
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Don’t know if I’d read too much into that. QF’s Company Secretary also resigned last Christmas.
It makes news because it is an ASX-reportable event. Doesn’t necessarily mean anything of earthquake level is afoot. Doesn’t mean it isn’t either, of course.
Some things stay secret in the hallowed halls of big business. I never heard why the QF sec resigned.
It makes news because it is an ASX-reportable event. Doesn’t necessarily mean anything of earthquake level is afoot. Doesn’t mean it isn’t either, of course.
Some things stay secret in the hallowed halls of big business. I never heard why the QF sec resigned.
I don’t think anyone suggested anything about unions withholding labour.
Unions will be sitting on the other side of any EBA variations Bain may desire.
They do not have to agree, and as always, the employees will have the final say. They may be guided by the unions in their vote.
So yes, the unions do have a lot of say in Bain’s future cost of doing business.
There may always be a threat of outsourcing, but that will be up to the unions (and the employees) to weigh up during negotiations.
Unions will be sitting on the other side of any EBA variations Bain may desire.
They do not have to agree, and as always, the employees will have the final say. They may be guided by the unions in their vote.
So yes, the unions do have a lot of say in Bain’s future cost of doing business.
There may always be a threat of outsourcing, but that will be up to the unions (and the employees) to weigh up during negotiations.
Unions are so 19th Century. Today individualism is the key driver but for some reason the individuals need someone else to do their bidding. Bit like how there is a cry for the Governments to fix all problems these days - now look at Victoria when that comes to fruition. Sheeple are now subjected to a seemingly socialist self-imposed rule by Comrade Dan....
Unions are so 19th Century
The Union (or Association as it actually referred to) have on countless occasions during my employment saved myself and my colleagues from the total and utter shaftings that this company would have inflicted upon us. Prior to employment in aviation I would describe myself as being somewhat ambivalent towards Unions. However since being in this industry I would regard anyone in aviation and not in a Union as somewhat insane.
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That is complete BS The Union (or Association as it actually referred to) have on countless occasions during my employment saved myself and my colleagues from the total and utter shaftings that this company would have inflicted upon us. Prior to employment in aviation I would describe myself as being somewhat ambivalent towards Unions. However since being in this industry I would regard anyone in aviation and not in a Union as somewhat insane.
The Union (or Association as it actually referred to) have on countless occasions during my employment saved myself and my colleagues from the total and utter shaftings that this company would have inflicted upon us. Prior to employment in aviation I would describe myself as being somewhat ambivalent towards Unions. However since being in this industry I would regard anyone in aviation and not in a Union as somewhat insane.