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TWU endorses Bain’s Virgin win and pledges co-operation

written by Adam Thorn | June 26, 2020
A file image of a Virgin Australia Regional Airlines (VARA) Airbus A320. (Rob Finlayson)
A Virgin Australia Regional Airlines (VARA) Airbus A320. (Rob Finlayson)

The TWU has tentatively lent its support to winning Virgin bidder Bain, in a significant sign it will also seal the support of employee creditors ahead of August’s crunch final vote.

National secretary Michael Kaine said, “Bain put forward a solid bid to secure the administrator’s recommendation and we are happy to work with them on the plan for getting the airline back on its feet.”

The TWU had influence in the deal as the airline’s employees together account for 9,020 of the total number of creditors and are owed $451 million.

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“Both Cyrus and Bain put in serious, strong proposals which indicates the extent to which Virgin is an excellent investment with a committed and experienced workforce. It also shows the vital place Virgin holds in the Australian aviation landscape,” Kaine said.

“But when we sit down with Bain and the administrators to plan the next steps we know that there are still many uncertainties which will make decision-making very difficult. There is virtually no international travel and domestic air travel is severely curtailed and likely to be so for the foreseeable future. In this context planning for an airline’s future is near impossible.”

Kaine also called for the government to extend the JobKeeper scheme for the aviation industry beyond its September expiring date.

Yesterday, Qantas chief executive Alan Joyce said he’s been in talks with Treasurer Josh Frydenberg on trying to extend the initiative for the industry with many international borders still remaining shut.

PROMOTED CONTENT

The JobKeeper package was introduced to provide coronavirus-effected business with $1,500 per employee, per fortnight.

The companies are then legally obliged to pass that payment onto workers in a bid to keep the economy active during the pandemic.

However, the JobKeeper payments are substantially higher than the default ‘JobSeeker’ payments given to those completely out of work or stood down.

“The federal government must stabilise the aviation industry with Aviation Keeper, an extension of support beyond September for all aviation workers. Both Virgin and Qantas need financial assistance, support and direction from the government on weathering the difficult months ahead as air travel limps along,” said Kaine.

“But government assistance cannot just be an airline package as the companies which service the airlines are also effectively grounded and their workforces stood down. The government must act urgently on a plan for the aviation sector or risk many thousands of job losses.”

6 Comments

  • CHER

    says:

    you’d have to think that something like half the number of employees working for less. This would reduce wages bid enormously maybe up to 60%.

  • Paul

    says:

    Let’s hope that when Bain makes any staff cuts that the union honours it word.

    • Marshall

      says:

      Paul, I wouldn’t hold my breath, knowing TWU’s appalling track record. Just remember how they treated QF Aug-Oct 2011.
      ‘TWU’ & ‘honour’ is an oxymoron!

  • Frederick

    says:

    TWU ‘runs with the hares, & hunts with the hounds’.
    Let’s see how they act once Bain starts sacking staff, which WILL happen, because that’s how they operate.

  • Mark

    says:

    Toys R Us in a lot less risky industry didn’t last long after receiving the “Bain Treatment”. Not sure what assets Virgin own – but can guarantee by Xmas they’ll own none.

    • Daryl

      says:

      Very few, Mark, & of those, nobody’s buying second-hand planes’ now, or in the foreseeable future.

      I give ‘em two to three years’ before the big piecemeal sale.
      Maybe that’s being generous!

Leave a Comment

Your email address will not be published. Required fields are marked *

TWU endorses Bain’s Virgin win and pledges co-operation

written by Adam Thorn | June 26, 2020
A file image of a Virgin Australia Regional Airlines (VARA) Airbus A320. (Rob Finlayson)
A Virgin Australia Regional Airlines (VARA) Airbus A320. (Rob Finlayson)

The TWU has tentatively lent its support to winning Virgin bidder Bain, in a significant sign it will also seal the support of employee creditors ahead of August’s crunch final vote.

National secretary Michael Kaine said, “Bain put forward a solid bid to secure the administrator’s recommendation and we are happy to work with them on the plan for getting the airline back on its feet.”

The TWU had influence in the deal as the airline’s employees together account for 9,020 of the total number of creditors and are owed $451 million.

Advertisement
Advertisement

“Both Cyrus and Bain put in serious, strong proposals which indicates the extent to which Virgin is an excellent investment with a committed and experienced workforce. It also shows the vital place Virgin holds in the Australian aviation landscape,” Kaine said.

“But when we sit down with Bain and the administrators to plan the next steps we know that there are still many uncertainties which will make decision-making very difficult. There is virtually no international travel and domestic air travel is severely curtailed and likely to be so for the foreseeable future. In this context planning for an airline’s future is near impossible.”

Kaine also called for the government to extend the JobKeeper scheme for the aviation industry beyond its September expiring date.

Yesterday, Qantas chief executive Alan Joyce said he’s been in talks with Treasurer Josh Frydenberg on trying to extend the initiative for the industry with many international borders still remaining shut.

PROMOTED CONTENT

The JobKeeper package was introduced to provide coronavirus-effected business with $1,500 per employee, per fortnight.

The companies are then legally obliged to pass that payment onto workers in a bid to keep the economy active during the pandemic.

However, the JobKeeper payments are substantially higher than the default ‘JobSeeker’ payments given to those completely out of work or stood down.

“The federal government must stabilise the aviation industry with Aviation Keeper, an extension of support beyond September for all aviation workers. Both Virgin and Qantas need financial assistance, support and direction from the government on weathering the difficult months ahead as air travel limps along,” said Kaine.

“But government assistance cannot just be an airline package as the companies which service the airlines are also effectively grounded and their workforces stood down. The government must act urgently on a plan for the aviation sector or risk many thousands of job losses.”

6 Comments

  • CHER

    says:

    you’d have to think that something like half the number of employees working for less. This would reduce wages bid enormously maybe up to 60%.

  • Paul

    says:

    Let’s hope that when Bain makes any staff cuts that the union honours it word.

    • Marshall

      says:

      Paul, I wouldn’t hold my breath, knowing TWU’s appalling track record. Just remember how they treated QF Aug-Oct 2011.
      ‘TWU’ & ‘honour’ is an oxymoron!

  • Frederick

    says:

    TWU ‘runs with the hares, & hunts with the hounds’.
    Let’s see how they act once Bain starts sacking staff, which WILL happen, because that’s how they operate.

  • Mark

    says:

    Toys R Us in a lot less risky industry didn’t last long after receiving the “Bain Treatment”. Not sure what assets Virgin own – but can guarantee by Xmas they’ll own none.

    • Daryl

      says:

      Very few, Mark, & of those, nobody’s buying second-hand planes’ now, or in the foreseeable future.

      I give ‘em two to three years’ before the big piecemeal sale.
      Maybe that’s being generous!

Leave a Comment

Your email address will not be published. Required fields are marked *

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