Jetstar legal action update
 

As a number of questions get asked what happened to the action here are the last couple of newsletters to give you an idea.

TO: All Jetstar Pilots
FROM: AFAP Jetstar Council
DATE: 15 August 2011
RE: Jetstar EBA Discussions – Update
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On Thursday 11 August 2011 we, along with AIPA Jetstar pilot reps, met again with the company regarding the employment of all Australian based Jetstar pilots under our EBA.

We have concluded discussions regarding one of the part-time options, now called “Flexi-Line (Part-Time)” employment (FL). The proposed FL model agreement has been circulated amongst the AFAP Jetstar Council Committee and Base Reps. We expect that the agreement will be signed off on Tuesday 16 August 2011. A full copy of the agreement will be distributed to the pilot group as soon as it is finalised. The broad features of the model/agreement are as follows:

• A minimum payment guarantee of 56 credit hours per month;
• Extra flying allowance after 56 credit hours;
• Extra flying allowance and work day off payments at the same rate as full-time pilots;
• A maximum of 15 days of rostered work per month;
• 11 designated days off (DDOs) per month (as per a full-time pilot), no stand-by duties and the balance in duty free days (DFDs) per month;
• Grouping of a minimum of 7 consecutive days away from work (DFDs and DDOs) per roster;
• A 10% cap on the number of new hire FL positions;
• A pathway for FL pilots to become full-time should they choose to do so;
• A guaranteed ability for existing pilots to opt-in and opt-out of fixed terms as an FL pilot should they choose to do so, at least 5% before 1 July 2012 and 10% after 1 July 2012;
• Annual leave and other EBA conditions and payments as per full-time pilots;
• A joint review of the model on 1 July 2012.

An indication of the progress we have made in developing what we believe is a fair and balanced model is the emphasis on ensuring that existing pilots are able to access FL employment.

Your Council and Base Reps are again meeting via teleconference this week. The next meeting (or series of meetings) with the company is scheduled for the week beginning Monday 22 August 2011. It is hoped that this series of meetings will resolve the outstanding issues of mobility and, most importantly, cadet employment.

From the outset our aim has been to ensure that all Australian based Jetstar pilots are employed by Jetstar Airways Pty Limited on fair and reasonable terms under your EBA. We have made positive progress to achieving this aim and remain hopeful of further progress.

If you have any questions regarding this matter please let your AFAP Jetstar Base Rep know, ask any of the AFAP Jetstar Council members or contact Simon Lutton ([email protected] or (xxx) or Andrew Molnar ([email protected]) or (03) 9928 5737).

Regards
AFAP Jetstar Council
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TO: All Jetstar Pilots
FROM: AFAP Jetstar Council
DATE: 24 August 2011
RE: Jetstar EBA Discussions – Update

Yesterday and today we, along with AIPA Jetstar pilot reps, held another meeting with the company regarding the employment of all Australian based Jetstar pilots under our EBA. After formally signing off on the new “Flexi-Line (Part-Time)” employment (FL) model we commenced discussions on arrangements for the employment of all Australian based Jetstar cadets by Jetstar Airways Pty Limited under the EBA.

As many of you will be aware, the Jetstar cadets are currently employed under individual contracts with an entity called Jetstar Group Pty Ltd. Amongst other things, these contracts require a cadet pay $10,500 per year over six (years) to Jetstar and other bonding arrangements. The legality of these contracts is the basis of our current proceedings in the Federal Court of Australia.

After robust discussions on the first day (and both parties seeking further legal advice overnight) we are pleased to advise that we have reached in-principle agreement for the employment of these Jetstar Group cadets under your EBA. The main points of the agreement are:

• No repayment of training costs;
• Refund of training costs paid to date under the group contract (if any);
• A 3 year $36,000 bond;
• Payment as a junior F/O for a maximum of two years (guaranteed minimum annual base salary of $57,118);
• Payment as a F/O Level 1 after two years or attainment of an ATPL (whichever occurs first);
• Flexi-Line employment;
• Current basing to remain;
• Seniority number and all rights and entitlements as per the EBA;

We expect that the cadets will be offered employment by Jetstar Airways Pty Limited under the EBA within the next week or so. This will secure a seniority number ahead of all new hires.

From the outset our aim has been to ensure that all Australian based Jetstar pilots are employed by Jetstar Airways Pty Limited on fair and reasonable terms under your EBA. As a result of our considered and successful industrial and legal strategy we are well on the way to achieving our aim.

Further meetings to deal with mobility and other part-time employment options will be scheduled shortly. We will keep advised of developments.

If you have any questions regarding this matter please let your AFAP Jetstar Base Rep know, ask any of the AFAP Jetstar Council members or contact Simon Lutton ([email protected] or (xxx) or Andrew Molnar ([email protected]) or (03) 9928 5737).

Regards
AFAP Jetstar Council
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TO: All Jetstar Pilots
FROM: AFAP Jetstar Council
DATE: 29 August 2011
RE: Jetstar EBA Discussions – Update (Cadets)

PAPER-WORK FINALISED

Last week we reported that we had reached in-principle agreement for the employment of all current Jetstar cadets by Jetstar Airways Pty Limited under your EBA. The main points of the agreement being:

• No repayment of training costs;
• Refund of training costs paid to date under the Jetstar Group contract (if any);
• A 3 year $36,000 bond;
• Payment as a junior F/O for a maximum of two years (guaranteed minimum annual base salary of $57,118 – increasing in January 2012 in line with the EBA);
• Payment as a F/O Level 1 after two years or attainment of an ATPL (whichever occurs first);
• Flexi-Line employment;
• Current basing to remain;
• Seniority number and all rights and entitlements as per the EBA.

Today we met to finalise the paperwork. The agreement which we finalised today covers all cadets currently flying within Jetstar Australia (whether checked to line or in training).

The cadets currently flying within Australia will now be offered permanent employment by Jetstar Airways Pty Limited under the EBA. The offers of employment are being made as soon as possible in order to ensure that their seniority is appropriately reflected (i.e. ahead of the next intake of new hires).

From the outset our aim has been to ensure that all Australian based Jetstar pilots are employed by Jetstar Airways Pty Limited on fair and reasonable terms under your EBA. As a result of our considered and successful industrial and legal strategy we have ensured that every F/O and cadet currently operating within the Australian Jetstar network is offered employment by Jetstar Airways Pty Limited and thereby entitled to the rights and protections of your EBA.

We intend to meet with the company to deal with issues such as mobility and other part-time employment options in the near future. We will keep advised of developments.

If you have any questions regarding this matter please let your AFAP Jetstar Base Rep know, ask any of the AFAP Jetstar Council members or contact Simon Lutton ([email protected] or xxx) or Andrew Molnar ([email protected] or (03) 9928 5737).

Regards
AFAP Jetstar Council
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Thanks for the update Lawrie.

Winning the battle but not the war I feel. The extent to which Jetstar management have rolled over and let you tickle their bellies is a sure sign they wanted to keep this out of the federal court - at all costs.

Am I correct in assuming that the federation's part of the deal is to cease the court action against JQ?

I hope that this 'deal' covers the cessation of using australian bases for the line training of overseas crew who are employed by Jq NZ or any other JQ franchise.

I look forward to you posting the answers to the questions in the same way you have done with the press releases

The Kelpie

Those new conditions for cadets actually look somewhat reasonable now...

Might be a different story if the Judges and Barristers were actually consultants with links to the Execs, there would be tonnes of legal action being thrown their way !

Is this a joke?

Why take on the responsibility for this wage.

Qantas Cabin Crew get paid more.

Hi Lawrie ,
Have you explained to all the Jetstar pilots that the " part time " pilots will be used to stop them from getting called out on days off for the enormous money they get for that ? Have you also explained to the Jetstar f/o's that now there is carte Blanche to employ direct entry Capts over the top of them forever ? What shrewd industrial move .

What is Flexi-Line employment?

What is the usual salary for a jetstar FO as per the Australian EBA?

Agreed, but that's the JQ EBA pay rate for a "Junior FO" who is defined as a pilot operating as an FO who doesn't have an ATPL. At least these cadets are limited to two years max on this pitiful salary, whereas the EBA could keep them there for much longer.


I don't think you understand the policy. PT pilots get 15-16 days off a month. They get the same money for being called out on a day off as do full timers. They can't be rostered for standby. What incentive does JQ have for calling in a PT pilot for "day off" work over a full time guy?

Once again I fail to understand your logic. JQ can't make command upgrades or base/type changes conditional on FL employment. Many JQ FO's will be bypassed by QF MOU guys coming across. The fact is that these FO's were aware of the MOU when they joined, so whilst it's a case of poor timing for them, everything in this regard is above board and in accordance to what was agreed upon prior to their employment.

McG- Lawrie has given a brief synopsis of this in his post. It is basically reduced divisor flying with more days off. i.e. you are subjected to a min guarantee of 75% of the full time salary but can only be rostered to work 75% of the days that a full timer can. Extra flying on top of the min. guarantee is at the same overtime rate as for full timers. Day off flying is at the same rate too.

Overall this policy means that cadets are only bonded for 3 years/ $36k and do not need to make any repayments on debts incurred for their training. The full time salary for a new hire FO at JQ is $87 262. On Flexi- Line employment the base salary for a new hire FO is $65 447. A new hire needs to pay off a $36k debt through salary sacrifice over 33 months.

After paying off their endorsement debt to JQ a new hire FO would not be any better off than a cadet if they both worked minimum hours. If the two pilots worked longer than min hours then the "direct entry FO" would be better off because their hourly pay is higher.

All this is not trying to justify the substandard conditions of the JQ EBA, but rather to point out that it is the EBA, and not the Flexi-Line employment model or the deal that has been offered to the cadets recently that is inadequate.

what about Jetstar pilot outside AUS
 

All above is about Australian bases pilot. Are there any arrangement affecting jet star pilot outside Australia?

But surely on expiration of the current EBA the award would kick in which makes no such provision for JFO's and provides that the minimum payment for a member of a320 crew is much higher than that agreed anyway.

Remember the award is designed as a safety net .

I wonder if the graduating ab initio cadets will now be required given that their training costs are much higher ( approx. $220k) and that given that all cadets will be flexi line pilots and that there is a 10% cap in flexi line pilots compared to full timers.

I fear we have only got the headlines from AFAP and not both sides if the story.

The Kelpie

Yossarian , they won't be calling in FL pilots on their days off , they will be using them to negate the need to call in the current pilots on their days off for the fantastic money they currently get for that . The nett result no more day off pay for anyone . The argument is why not just employ a pilot on a normal fulltime contract .
Why does jetstar need to bring in direct entry captains ? This has nothing to do with the Qantas MOU . These are external Capts who will be brought in over the top of current jetstar f/o's . Why would anyone support this . They can claim 10% FL only however once in they can just keep making FL pilots fulltime continually bringing in DEC's negating the need to ever upgrade a current jetstar F/O . Or should we trust Jetstar management to do the right thing ? Why would the AFAP and the AIPA jetstar reps support this . When advised by AIPA that this could not go ahead there was a major dummy spit by the jetstar reps . Why are they so passionate about allowing Direct Entry Capts to squash the careers of their F/O's . While I'm on it . What will happen to the Jetstar 330 pilots when the Qantas 330's they are flying finally go back to Qantas ? With the current push into Asia it seems no 787's will ever be based in Australia . What happens then ?

Herb

What makes you think DECs are anymore likely/possible than before? Specific clauses please... As it stands, I disagree the FL policy will disadvantage current FOs in that respect.

As for the day off payment, they will be just as short and disorganised as before, so WDO payments wont change. If WDO payments were more expensive than employing pilots then one would think thats what they'd do. FL positions have a minimum gauranteed pay, so its in the companys interest to have them working, not sitting there ready to take up the slack.

Hi Waren . Ask you jetstar pilot reps about DEC's . They are negotiating them right now with your company . With the support of the AFAP . I would love to be told how wrong I am .

Thanks for the update Lawrie.

Do the parties have to report back to the Fed Court on the outcomes of these meetings given their "interest" in this?

Jetstar has intended to employ Tiger DECs. Dont know how far this has got. Line pilots have made their position clear to both unions on this.

AFAIK the negotiations you refer to are around some sort of bypass deal line guys might be able to stomach. We'll see.

Completely seperate from FL Policy and cadet issues.

and again... http://m.uploadedit.com/b97/22670231.gif

Is that correct? I know that when my EBA expires the provisions within it continue on until a new EBA is agreed to. Is the JQ EBA different in this regard? That would be a major loophole for the company to exploit.

I have heard the DEC"S are dead in the water......

It's only been the CP pushing for it, as they are his mates he's trying to employ..