VIPA News Apr-Jun 2011

EBA and LoL SPECIALEMPOWER YOUR REPRESENTATIVES

JOIN VIPA TODAY!How?

Why?

Fill out the application form on the back of this newsletter (or download from www.vipa.asn.au)

Submit your application by scanning and emailing to [email protected], or

Fax (03) 9014 0793, or Mail to: VIPA Secretary, PO Box 368,

Tullamarine Business Park, Tullamarine VIC 3043

We’ll take care of the rest. You will be contacted by email with information regarding the membership process, payment options, member benefits, and Loss of Licence insurance including how to change from your current provider.

Run by Virgin pilots for Virgin pilots, we work under the same conditions as you do.

We do not represent any other pilots so all resources and focus goes to Virgin pilots.

We have a proven history of successful representation of Virgin pilots. Since inception, VIPA has successfully represented dozens of Virgin pilots following incidents or on disciplinary related matters with positive outcomes (everyone says it will never happen to me, but this simply isn’t true – insure your job, it’s your biggest investment).

Contribute to your employment conditions - make your voice heard! Pilots’ terms

and conditions are under threat, so get involved.

You determine the direction of VIPA. Since registration, VIPA has completed over 20 member surveys to determine our members’ views on matters affecting your employment and welfare.

Access to industry leading Loss of Licence insurance.

100% of members would recommend joining VIPA to other Virgin pilots (VIPA Engagement Survey).

APRIL - JUNE 2011

VIPA Contact DetailsAddress: PO Box 368, Tullamarine Business Centre, Tullamarine VIC 3043Phone: 1800 116 460Email: [email protected]: www.vipa.asn.au

Copyright 2009-2011 VIPA

Editorial TeamKarl DavisRachel DavisHound Dog Graphics

INSIDEPresident’s Report ..............................2

Workplace Bullying .............................2

Executive Director’s Report ................3

Work Rules Survey ..........................4-5

Loss of Licence Policy .....................6-7

Loss of Licence FAQ ...........................8

V Australia EBA Update .................9-11

VIPA Membership Application ..........12

PO Box 368 Tullamarine Business Park Tullamarine VIC 3043

P: 1800 116 460 E: [email protected] W: www.vipa.asn.au

VIPA Membership Application Form

VIPA – ABN: 81 242 166 461

V2.3

You will receive a copy of the rules of VIPA once your membership application has been submitted. Please email the

secretary ([email protected]) if you would like a copy of the rules of VIPA prior to submitting your application.

Full Name: Postal Address: Suburb: State: Postcode:

Home Phone: Mobile Phone: Date of Birth: Email Address: Employer: Base: Fleet:

Rank: Licence: ATPL CPL Referring Member: Employment: Full Time RO/RO Other

Payment Invoiced: Annually Quarterly

Direct Debit: Yearly Quarterly Monthly I apply for membership of VIPA. • I am employed as a pilot, on airline services within or extending beyond Australia, by Virgin Blue Airlines

Pty Ltd, or its related entities, its successors or assigns. • I agree to abide by the rules of VIPA (the “rules”) as amended from time to time.

• I understand that I remain a member of VIPA until I revoke my membership in writing in accordance with

the rules and with the Fair Work Act 2009 • I agree to pay annual subscription fees in accordance with the rules and that the annual subscription fee of

VIPA is 0.8% (+ GST) of my annual gross salary as amended from time to time.

• I have read the information supplied relating to financial obligations of membership and the circumstance

and manner in which I may resign my membership. • I understand that my initial invoice will include a $15.00 (+ GST) admission fee.

Signed: ________________________________ Dated: ______________________

Send this completed form to the Secretary, VIPA, by email or post, using the details below.

PO Box 368 Tullamarine Business Park

Tullamarine VIC 3043

P: 1800 116 460

E: [email protected]

W: www.vipa.asn.au

VIPA Membership Application Form

VIPA – ABN: 81 242 166 461

V2.3

You will receive a copy of the rules of VIPA once your membership application has been submitted. Please email the

secretary ([email protected]) if you would like a copy of the rules of VIPA prior to submitting your application.

Full Name:

Postal Address:

Suburb:

State: Postcode:

Home Phone:

Mobile Phone:

Date of Birth:

Email Address:

Employer:

Base: Fleet:

Rank: Licence: ATPL CPL

Referring Member:

Employment: Full Time RO/RO Other

Payment Invoiced: Annually Quarterly

Direct Debit: Yearly Quarterly Monthly

I apply for membership of VIPA.

• I am employed as a pilot, on airline services within or extending beyond Australia, by Virgin Blue Airlines

Pty Ltd, or its related entities, its successors or assigns.

• I agree to abide by the rules of VIPA (the “rules”) as amended from time to time.

• I understand that I remain a member of VIPA until I revoke my membership in writing in accordance with

the rules and with the Fair Work Act 2009

• I agree to pay annual subscription fees in accordance with the rules and that the annual subscription fee of

VIPA is 0.8% (+ GST) of my annual gross salary as amended from time to time.

• I have read the information supplied relating to financial obligations of membership and the circumstance

and manner in which I may resign my membership.

• I understand that my initial invoice will include a $15.00 (+ GST) admission fee.

Signed: ________________________________ Dated: ______________________


OFFICIAL NEWSLETTER

VIPA NEWS

VIPA NEWS APRIL - JUNE 20112

Presidents Report

Workplace Bullying – New Legislation in Victoria puts Bullies on notice

With EBA negotiations underway, the coming months will be pivotal in determining the terms and conditions under which you work for years to come. The negotiations will no doubt prove very challenging to your negotiators, and will also test the resolve of Virgin pilots to bring about a working environment that not only provides a stable and satisfying work place but establishes a pathway to a satisfactory career.As pilots, we are facing a concerted campaign to further ‘dumb down’ our profession. Whilst we have seen some positive and encouraging changes within Virgin in recent months since the arrival of John Borghetti, have no doubt that there are others who do not share his respect for pilots nor have any interest in working with or bringing about any recognition of the important role the pilots play in the airline. Many, but not all, of these individuals are driven by an ideology which appears to preclude any understanding of the intricacies, pressures and functions of what is required in our profession. Our experience with the V Australia EBA negotiations has certainly brought this into the spotlight.

Workplace bullies in Victoria will face up to 10 years in gaol under changes to stalking laws that now include a workplace bullying aspect. The criminalisation of bullying was prompted by the death of 19-year-old Brodie Panlock in 2009. Brodie took her life after being relentlessly bullied at the cafe in which she worked. As a consequence these new laws have been dubbed “Brodie’s law” and have been introduced into the Victorian State Parliament.The Victorian Government has tried to avoid the conceptual problems of defining workplace bullying and instead, it extends the definition of the pre-existing offence of stalking by expanding the definition of that offence to pick up the type of behaviours that are typical of workplace bullying.Unlike the current Victorian laws dealing with workplace bullying (Occupational Health & Safety Act 2004 (Vic)) this is not directed at employers, but at the employees engaged in bullying. Nonetheless, unions and employers will need to understand the new laws and, in some cases, deal with the practical problems arising from them.

How will these new laws work?Currently stalking is defined with two elements in the Crimes Act 1958 (Vic). First, there are the behaviours, such as following the victim, keeping them under surveillance, or interfering with their property. Some of these

behaviours would already be considered as bullying if they happened in the workplace.The second element is the intention of the person doing those things – are they being done “with the intention of causing physical or mental harm to the victim or of arousing apprehension or fear in the victim for his or her own safety or that of any other person”?The Bill expands these behaviours to include:

l making threats to the victim;l using abusive or offensive words to, or in

the presence of, the victim;l performing abusive or offensive acts in the

presence of the victim;l directing abusive or offensive acts towards

the victim;l acting in any other way that could

reasonably be expected to cause a victim to engage in self-harm

It also changes the intention to include self-harm, given the expanded behaviours, along with physical and mental harm.

What are the practical implications of treating workplace bullying as a type of stalking?The first, and most obvious, is that committing the offence of stalking can attract gaol time of up to ten years.

- continued page 5

Furthermore, it has highlighted how important it is to negotiate with people who not only have the authority to negotiate, but also have an understanding of a range of issues relating to how pilots must function. Unlike other work groups, pilots cannot readily move from employer to employer, nor do they generally seek to do so. Accordingly, in order to fulfill the often-mooted aspirations to having a ‘safety culture’, a ‘fair workplace’ etc. there needs to be perhaps a little less emphasis on personal KPI’s, bonuses and the clamour for a higher perch on the corporate ladder. Rather, we need more understanding of the demands and responsibilities associated with operating a modern airliner.VIPA recently met with the AFAP negotiators with a view to establishing a collaborative approach to the EBA negotiations. With generally common objectives I believe it is important that both unions work together throughout the EBA negotiating process. To that end, VIPA has tabled a Memorandum of Understanding (MoU) that essentially sets out some binding rules and procedures under which VIPA and the AFAP will work. Unfortunately the AFAP have since rejected our MoU.The negotiating teams are committed to bringing about a satisfactory outcome that addresses the needs of the pilot community. The primary responsibility here is to represent the views of the majority; however, determining that majority view can be challenging. To that end, VIPA has carried out a range of member surveys to determine your views and ensure

it has a clear mandate leading into the negotiations. Clearly it is impossible to satisfy the needs of every group - there will always be winners and losers and people who feel they could have done better. The VIPA team will do its best to represent members fairly and to achieve the best overall result. It is disappointing and concerning that a number of our colleagues still choose not to belong to either union. It is difficult to understand why people risk so much by electing not to have representation. They insure their home, their car, their life - yet choose not to ‘insure’ their job. Association membership is insurance. It is also arguably unfair that these individuals enjoy the benefits and conditions negotiated by representatives funded by the membership fees of their colleagues. Whilst I respect the right of an individual not to join a union I would be more comfortable if those individuals were to make an equivalent contribution to a recognized charity. This is a custom often adopted in other airlines.Ultimately, you – the member – will determine the outcome of this process. The resolve and support of the membership is the foundation of the negotiators strength.

John Lyons President

www.hallpayne.com.au

Practising in:

OFFICES LOCATED ATBRISBANE | ROCKHAMPTON | SOUTH BRISBANE | SPRING HILL

CAIRNS* | CALOUNDRA* | GLADSTONE* | SOUTHPORT* | TOWNSVILLE**by appointment

ts_h

p_04

6

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VIPA NEWS APRIL - JUNE 2011 3

Executive Directors ReportIn a nutshell….The start of 2011 has been hectic for VIPA as it has been for most of our members. The big news, of course, is that Virgin Blue has relaunched as Virgin Australia and the Group has new uniforms, corporate colours, business class with the A330’s readying to push off for the first time on the Perth routes.

The reaction from our members has been positive regarding the new look Virgin Australia and we are sure the traveling public will also enjoy the new look and feel of flying Virgin Australia.

As you may be aware, we have set up shop at Mascot in Sydney. Our new office has been purpose built to allow expansion of the VIPA operations into the future. Our office is situated next to Sydney airport and we have chosen a location that allows VIPA to continue its tremendous growth at the median point between Melbourne and Brisbane.

On the industrial front, the V Australia negotiations have continued in earnest and the company has put their ‘final offer’ remuneration package on the table. VIPA has, in response, sent V Australia our latest agreement and also our proposed market based remuneration package. In addition, we have tabled a long haul rostering system that our delegates believe works best for V Australia pilots. VIPA is back into negotiations with the Company from 11 May. Of particular note in these negotiations is the effort of our delegates, Tony Dodd, Craig Martin and Andrew Grierson, who have worked hard on these negotiations and gone well beyond the call of duty in representing our V Australia membership.

Virgin Australia negotiations have now technically commenced due to the bargaining notice being issued by the Company. VIPA and the AFAP have met to discuss the upcoming negotiations and have sought to work collaboratively in these negotiations for the benefit of all pilots. To that end, VIPA drafted a Memorandum of Understanding (MoU) as a means by which both unions can work constructively together. Unfortunately, the AFAP have since rejected the MoU.

Additionally during the course of May and June, VIPA delegates will be meeting to work through a log of claims for these negotiations. Our intention is to work closely with the membership as to what you see as being priorities for the upcoming negotiations.

On other fronts, VIPA has put together a new Loss of Licence product for you. We have also advocated member views at the Virgin Australia monthly meetings, dealt with individual member queries, sought your feedback through surveys, and we are seeking more information from the Company on the possible integration of the Group ... just to name a few things.

VIPA Info Sessions a success!VIPA held three info sessions in Sydney, Melbourne, and Brisbane with attendance ranging from 30-50 pilots. A number of non-members attended and we were pleased to see them take an interest in VIPA and our improved Loss of Licence product.

John Lyons, Karl Davis, Andrew Hunt, Tony Dodd, Tim Elstoft and I presented on topics ranging from the state of the union, the new and improved Loss of Licence product, protected industrial action and the current state of play with Virgin over industrial relations.

New Loss of Licence ProductTim Elstoft, VIPA’s insurance specialist, has presented a new and improved Loss of Licence (LoL) policy that has unique advantages for younger pilots. It has been suggested that VIPA’s LoL product is easily the best in Australia and that it would be hard to beat anywhere else in the world. We are proud of our Loss of Licence product and believe that you will not be disappointed. Details of the new product are presented later in the newsletter, so check it out…

Possible integration of PacBlueVIPA understands that integration of other parts of the group are being examined by Virgin Australia and that plans are underway particularly for Pacific Blue to possibly integrate into the Australian operations.

On a preliminary basis, at least, this development appears to be positive as we

may see Australian operations expand with more Australian jobs being filled.

VIPA members and Safety Committee to attend IFALPA Safety meetingsWe are pleased to announce that VIPA is working closer with IFALPA to ensure that our delegates, safety committee and members can attend IFALPA safety updates and conferences.

VIPA congratulates V Australia Cabin and Ground Crew VIPA has written to the International Flight Attendants union congratulating their members on obtaining a 91% rating from the latest Roy Morgan Airline Satisfaction Report for the previous 12 months ending January 2011. Other carriers surveyed included Qantas, Air New Zealand, Cathay, Emirates and Singapore.

Legacy carriers have been put on notice.

SkyWestVIPA is writing to Virgin Australia to ascertain more of the details surrounding this relationship and will be in contact soon about how this will affect our members.

Office in SydneyThose members who attended the Sydney info session will have had the opportunity to see our new office premises at:

Suite 7.04 (Level 7), 247 Coward Street Mascot NSW.

Drop by for a cup of coffee or a discussion about your terms and conditions of employment.

Simon O’Hara VIPA Executive Director

0400 188815

different

John Lyons speaking at VIPA’s Brisbane Information Session 2011.

New VIPA office in Mascot, NSW.


Work Rules Survey – The Results Are In... One of VIPA’s philosophical cornerstones has always been membership consultation, to ensure that we are representing your views accurately. Towards that end, we have found member surveys to be an excellent tool for gathering your opinions on the important issues – not an easy task with such a diverse

and geographically dispersed membership base.

We have now finished the analysis of the Work Rules Survey completed earlier this year. With an excellent participation rate, the survey found that only 40% of the flight crew

members are satisfied with the current Virgin Australia Work rules; more specifically, only 26% of the Captains are satisfied with the current work rules. Below is a summary of the main points the members highlighted in each of the 11 questions.

1. Do you find the maximum duty limits appropriate for the sign on times contained within the maximum FDP table?

65.3% respondents answered NOCurrent FDP limts: 1 2 3 4 5 6**0600-0759 13 12 ¼ 11 ½ 10 ¾ 10 9 ½0800-1259 14 13 ¼ 12 ½ 11 ¾ 11 10 ¼1300-1759 13 12 ¼ 11 ½ 10 ¾ 10 9 ½1800-2159 12 11 ¼ 10 ½ 9 ¾ 9 92200-0559 11 10 ¼ 9 ½ 9 9 9Comments:

l Most stated that the duty lengths were too long, particularly for the 1-2 sector days.

l Review sign on time grouping for FDP limit tablel Company using table as roster targets, not limitsl Length of duty for early starts is excessivel Paxing should be counted as a duty to determine maximum

FDPl Max FDP for early and late starts is excessivel Limit number of sectors in 4 day period

2. What elements of the current work rules do you think contribute the most to produce a fatiguing duty or series of duties?

l The cumulative fatigue associated with multiple consecutive early sign-ons. Limit number of early starts in any 7 day period. KRONOS does not appear to recognise the cumulative effect of the sequential pairings

l Extended turn-arounds during a single FDP. Reduce to a maximum of 2 hours

l Maximum duty periods followed by minimum restl BOC followed by Early startl A lot of responses indicate that the circadian rhythm function

does not appear to be used during roster buildl Long duties at the end of a 6 day work period

3. Night duties (0200-0459) – Rate your satisfaction with the work rules surrounding night duties, including limitations on Consecutive Early Starts, Late Finishes and Night Duties.

51.7% respondents are dissatisfied with this section of the work rules. Looking more closely, 56.9% of B737 pilots are dissatisfied, while 31.3% of EJet pilots are dissatisfied with the night duties section. Looking at the type of flying conducted by each aircraft type, we conclude that a significant proportion of the dissatisfaction arises from the management of BoC duties.

Comments:l The cumulative fatigue associated with multiple early sign-

ons. Limit to 2l 30hr rest following BOCl Limit number of BOC in RP or weekl Have to bid for consecutive BOCl BOC should be a single sector dutyl Consecutive BOC – should be a bid for functionl Amend Night duty definition and times

4. Standby Duties – Rate your satisfaction with the work rules regarding standby duties

Only 30.8% of respondents overall are satisfied with the management of standby duties. More specifically, only 21.4% of Captains answered they were satisfied with this area, indicating the management of standby duties has more adversely affected them than First Officers.Comments:

l Most responses indicate STBY duties not evenly distributedl Limit number assigned per year (unless requested)l Increase notification period to 3 hrsl Add guaranteed DDO (13)l No carry on into following rosterl Simplify rulesl Should be able to bid for morning or afternoon standby dutiesl 15 hour rest at home between standby dutiesl Ensure crewing cannot assign duty commencing prior to

reserve period when signing off on previous duty

5. Rest Periods – Rate your satisfaction with the work rules regarding Rest Periods

Only 40% Satisfied

Comments:l Rest should be increased as duty exceeds a trigger, similar to

CAO48, the longer the day the longer the restl 15 hr rest at home regardless.l Pilots decision to reduce rest regardless of where.l Avoid 18 – 30 hour rest periods

6. Pilots Discretion to Extend a Flying Duty Period – Rate your satisfaction with the work rules regarding Pilots Discretion to Extend a Flying Duty Period

48.8% of Captains are dissatisfied with the work rules surrounding discretion to extend.

Comments:l Lot of responses indicate that it appears the company/

operations assume the crew will extendl Limit maximum extension to ½ - 1 hourl Some crew feel pressured into extending or feel they must to

get homel Crewing should be made to accept, no questions askedl Crewing should contact crew when it first becomes apparent

that the day will exceed max FDPl Should not be able to extend after long day

7. Designated Days Off – Rate your satisfaction with the work rules regarding Designated Days Off

58.9% of flight crew are satisfied with DDOs.

Comments:• Inability for KRONOS to award a requested DDO that has a high

priority• DDOs prior to leave > 2 weeks• 12 DDOs / RP• Amend buffers around and definition of DDOs• A number of guaranteed days off on request (ie 2/ QTR)


- continued from page 2.The second is that a victim of stalking can get an intervention order under the Stalking Intervention Orders Act 2008 (Vic), even if the stalker has not yet been convicted of a criminal offence. All that’s needed is for a court to be satisfied on the balance of probabilities that the respondent has stalked another person and is likely to continue to do so or to do so again. Intervention orders can, for example, order the stalker not to approach the victim’s workplace or contact the victim. ResultWe can expect a rise in complaints and the number of victims coming forward, and not just in Victoria, as other States and Territories have stalking laws that could cover at least some types of workplace bullying.Lessons arising from this?Anti-bullying policies and procedures need to be effective and communicated to staff on a regular basis and ensure that firm and fair action is taken in conjunction with unions like VIPA.It is one thing to have an anti-bullying policy in place for employees, it is another thing to promote and ensure compliance from your workforce and lead by example.ACTU PerspectiveThe ACTU has commented in the media that

serious bullying should be treated as a crime, but employers should remember it is also an occupational health and safety issue as well - everyone is entitled to a safe and secure workplace free of harassment and discrimination.VIPA’s perspectiveThe treatment meted out to Brodie Panlock was at the higher end of bullying and this legislation would potentially cover the more extreme examples of that type of workplace bullying. Nevertheless, the precedent value of this type of legislation may see other States adopt a similar approach that codifies what constitutes bullying in the workplace. Given the recent award received by Richard Tanner (Head of HR) on behalf of Virgin as an employer of choice, VIPA is seeking to be proactive on the bullying front and will be writing to John Borghetti seeking that Virgin sign up to an anti-bullying charter with VIPA for our members.What to do if you are bulliedWhat to do if you’ve been bullied depends on your individual situation. Try speaking directly to the bully. If it’s the first instance of bullying and you feel confident, calmly ask the bully to stop, and say you’re not prepared to talk to them until they settle down and treat you with respect. Check your workplace anti-bullying policy or code

of conduct for a definition of acceptable behaviour. Also check the grievance procedures and dispute resolution procedure at your workplace. Raise the issue with VIPA, occupational health and safety representative or human resources officer, and request confidentiality.Bullying can be difficult to prove. Record incidents of bullying in a diary in as much detail as possible and write down names of people who might be able to support your claim. Keep all copies of correspondence.Ask your colleagues for support, but don’t be discouraged if you don’t get support at work. You can get outside help. The Workers Health Centre offers medical advice and assessment. Contact them on (02) 9749 7666 or Virgin might have an employee assistance program that you can access.If you have suffered physically or mentally as a result of bullying, you may be entitled to workers’ compensation.Training and education programs help prevent bullying and harassment and VIPA is committed to providing our members with as much information as possible.If you feel you have been bullied at work – please contact VIPA on 0400 188815 for further confidential advice.

Workplace Bullying – New Legislation in Victoria puts Bullies on notice

Work Rules Survey – The Results Are In...8. Absolute Limits on Flying and

Cumulative Duty Hours – Rate your satisfaction with the work rules regarding Absolute Limits on Flying and Cumulative Duty Hours

48% of respondents are satisfied with the present limits; however, this drops to 37% satisfaction for Captains.Comments:

l Reduce all duty limitsl Introduce 7 day flight time limit

9. What do you consider are the worst elements of the present work rules? (What do you want to change).

l Acclimatised matrixl Day rest shiftsl Extended turnaroundsl Increase notification for next roster from 7

daysl Rostered consecutive Christmas’sl No transparency with Draft call outs, some

appear to be doing a lot more than most.l Inability to see KRONOS satisfaction

levels10. Additional comments

l The company cannot expect sustained health and safety while continually rostering to the limits for an indefinite period of time.

l Maximum FDPs do not allow any form of buffer to account for weather/traffic etc, forcing crew to decide on extension.

l Include international operationsl Standard of crew meals (quantity, quality,

and nutritional value) not appropriate for max FDP expected to operate

l DDO prior to Sim. If paxing sector to sim then not able to operate. Need to stress to company negotiators the stress involved with SIM and the concept of jeopardy.

l Standard of accommodation must be of the highest level to ensure appropriate rest, if they want to extract this kind of productivity out of us

l A lot of trips appear to start with early sign ons with the last day a late sign on and late finish

l Paxing conditions ie seat allocation. Include meals if paxing during meal period

l DDO prior to any ground duty or series of

ground dutiesl Rest period should not include transport

timel Flight deck should be professionally

cleaned regularlyl Remove any company will endeavour

statements

Where to from here?From the above responses we have focused on the following primary issues and solutions:

IssueThe longest days are too long

Night Flying fatigue

Current FDP does not represent all work performed

Standby rosters not well managed

Solutions Revise maximum duty limits including early startsFlight time limitation per duty.Including paxing sector in determining FDP.Remove acclimatised matrix.Reduce extended turn aroundsFatigue counter measures (well rested, adequately fed whether paxing or operating, etc.)Limit discretion to extend beyond max FDP as FDP increases

Reduce maximum duty for BoC operations.No consecutive BoC operations.Avoid 18 – 30 hour rest periods (in line with CAP371 philosophy).No second sector after BoC.Local nights rest prior to BoC operation

FDP include sign off time.Increased sign on for international flights.

Maximum of 2 standby rosters per year unless bidding forClarify 13 days off15 hours off at home base between duties if bidded for

Your Committee of Management is pleased to announce that VIPA has once again updated and improved the VIPA Loss of Licence (LOL) cover for our members. Insured through Lloyds Insurance Underwriters the VIPA LOL insurance policy has been put in place to protect our members against the potentially devastating financial consequences that can result from a suspension or cancellation of a pilot’s licence due to injury or illness.

The key elements of your LOL cover include:

• No Health Exclusions

• Automatic Cover with all pre-existing medical conditions covered

• A straight forward and easy to understand policy

• Unprecedented levels of insurance cover for VIPA members

We’ve listened to youDuring 2010 we asked our members for feedback on the VIPA policy. While the overwhelming response was positive, there were three key features that our members requested – portability, a shorter temporary payment with a larger lump sum payment, and a lump sum only option.

We are pleased to announce that the 2011 VIPA LOL policy incorporates all three improvements.

PortabilityYour VIPA LOL policy is now portable to many commercial airlines around the world. The only requirement to retain your VIPA policy is that you remain a member of VIPA.

Temporary Disability versus Total DisabilityThe total amount you will receive as a result of a disability, injury or illness is unchanged at 85% of your income for 5 years, however under the new policy the monthly payment will be for 2 years, with the lump sum paid at the end of the 2nd year. This will allow VIPA members with their own personal income protection insurance a more flexible method of receiving funds.

Lump Sum Only OptionVIPA members under the age of 40 can now select between the standard policy or a lump sum only option. The lump sum only option provides for a lump sum payment of:

• $550,000 for those under age 35


Life InsuranceVIPA members who also take out the VIPA LOL policy will automatically receive $250,000 of life insurance.

Level of CoverBelow is a payment summary based on a 737 Captain earning $184,791.

Insurance Fund versus Mutual FundThe VIPA LOL is an insurance fund, not a mutual fund. What’s the difference? A mutual fund does not have to make a payment to you if you lose your licence, even if you satisfy all of the terms and conditions of the fund. An insurance policy is required by law to pay you. Certainty of payment makes a big difference!

PremiumsThe premium for the VIPA policy is $2,520.00. This premium is within the amount claimable for Loss of Licence Insurance from Virgin Blue.

Where to from here?All VIPA members who are currently insured under the VIPA policy are automatically covered under the new policy and only need to forward their premium payment.

Joining is easy. Unlike other policies, there are no application forms whatsoever. VIPA members under the age of 60, and those over the age of 60 who are currently insured under the VIPA policy are automatically covered under the new policy.

If you are not a VIPA member, and would like cover under this policy, simply complete and submit a VIPA membership form, and you will be covered for a period of 30 days once your membership has been processed. You will then need to pay your premium within 30 days of joining VIPA, to continue coverage.

If you are over 60, and not currently covered by VIPA’s LOL policy you may still be accepted under this policy. Contact the secretary for further details.

Secretary - VIPA

p. 1800 116 460e. [email protected]

What about a Temporary Suspension of Licence?The VIPA LOL policy will cover you for 85% of your salary for up to 2 years if you are unable to fly due to injury or illness as covered in the policy Product Disclosure Statement.

Exclusions and Terms and Conditions Existing LOL policies available to pilots have exclusions on insurance payouts for some of the most common causes for people making a claim. They exclude or severely limit payments where a pilot is unable to fly as a result of degenerative diseases, mental illness, injuries relating to alcohol use and a whole raft of other conditions. You should check each product disclosure statement for exclusions.

The VIPA LOL policy has dramatically reduced those exclusions, to provide you with a policy to provide genuine protection against a suspension or cancellation of your licence.

No Application FormIf you are under the age of 60 (or over the age of 60 and already insured under the VIPA policy), there is no application form to complete in order to join the 2011 VIPA LOL policy. In addition to this, under the standard policy any pre-existing medical conditions you may have are automatically covered. NO OTHER LOL INSURANCE POLICY PROVIDES YOU WITH THESE ADVANTAGES.

Alternative insurers have an application process that includes up to 40 medical questions. It is also common for pre-existing conditions you have to be excluded from your cover meaning you are not entitled to insurance cover should any of those pre-existing conditions prevent you from flying.

Under the standard VIPA LOL policy there are NO HEALTH EXCLUSIONS and ALL PRE-EXISTING CONDITIONS ARE COVERED.

Age VIPA PolicyVirgin Policy

MBF (AFAP) Policy

30 $785,362 $500,000 $550,000

35 $785,362 $500,000 $550,000

40 $785,362 $500,000 $550,000

45 $785,362 $500,000 $550,000

50 $785,362 $358,000 $495,000

55 $785,362 $358,000 $440,000

60 $785,362 $358,000 $330,000

The above calculations are taken from the product disclosure statements of each of the major LOL policies. They make certain assumptions and you should evaluate each policy for your own particular situation.

All VIPA LOL members are in fact covered for 85% of their salary, up to a salary of $195,529 – so if your salary increases, your LOL cover also increases – automatically!

This information is for illustrative purposes and general in nature. It has been prepared without taking into account any of your objectives, financial situation or needs. You must therefore assess whether this product is appropriate for you, in light of your own individual objectives, financial situation or needs. It is advisable that you obtain professional financial advice before making any decisions. Examples do not take account of your individual tax situation. You should seek advice from a qualified professional regarding taxation. You should obtain a Product Disclosure Statement in respect to the product prior to making any decisions to acquire this product. VIPA is not an insurance broker or advisor and the information in this document and/or on the VIPA website are provided for the information of members only. VIPA does not accept responsibility for any loss, expense or liability which you may incur from using or relying on the information in this brochure/flyer. VIPA does not accept liability for any decisions made by any person in relation to this insurance product. Photography by Mehdi Nazarinia

new

new

new

LOSS OF LICENCE POLICY EXCLUSIVELYFOR VIPA MEMBERS

new Portability

new Shorter Temporary Payment with a Large Lump Sum Payment

new Lump Sum Only Option

new and improved features

Your Committee of Management is pleased to announce that VIPA has once again updated and improved the VIPA Loss of Licence (LOL) cover for our members. Insured through Lloyds Insurance Underwriters the VIPA LOL insurance policy has been put in place to protect our members against the potentially devastating financial consequences that can result from a suspension or cancellation of a pilot’s licence due to injury or illness.

The key elements of your LOL cover include:

• No Health Exclusions

• Automatic Cover with all pre-existing medical conditions covered

• A straight forward and easy to understand policy

• Unprecedented levels of insurance cover for VIPA members

We’ve listened to youDuring 2010 we asked our members for feedback on the VIPA policy. While the overwhelming response was positive, there were three key features that our members requested – portability, a shorter temporary payment with a larger lump sum payment, and a lump sum only option.

We are pleased to announce that the 2011 VIPA LOL policy incorporates all three improvements.

PortabilityYour VIPA LOL policy is now portable to many commercial airlines around the world. The only requirement to retain your VIPA policy is that you remain a member of VIPA.

Temporary Disability versus Total DisabilityThe total amount you will receive as a result of a disability, injury or illness is unchanged at 85% of your income for 5 years, however under the new policy the monthly payment will be for 2 years, with the lump sum paid at the end of the 2nd year. This will allow VIPA members with their own personal income protection insurance a more flexible method of receiving funds.

Lump Sum Only OptionVIPA members under the age of 40 can now select between the standard policy or a lump sum only option. The lump sum only option provides for a lump sum payment of:



Life InsuranceVIPA members who also take out the VIPA LOL policy will automatically receive $250,000 of life insurance.

Level of CoverBelow is a payment summary based on a 737 Captain earning $184,791.

Insurance Fund versus Mutual FundThe VIPA LOL is an insurance fund, not a mutual fund. What’s the difference? A mutual fund does not have to make a payment to you if you lose your licence, even if you satisfy all of the terms and conditions of the fund. An insurance policy is required by law to pay you. Certainty of payment makes a big difference!

PremiumsThe premium for the VIPA policy is $2,520.00. This premium is within the amount claimable for Loss of Licence Insurance from Virgin Blue.

Where to from here?All VIPA members who are currently insured under the VIPA policy are automatically covered under the new policy and only need to forward their premium payment.

Joining is easy. Unlike other policies, there are no application forms whatsoever. VIPA members under the age of 60, and those over the age of 60 who are currently insured under the VIPA policy are automatically covered under the new policy.

If you are not a VIPA member, and would like cover under this policy, simply complete and submit a VIPA membership form, and you will be covered for a period of 30 days once your membership has been processed. You will then need to pay your premium within 30 days of joining VIPA, to continue coverage.

If you are over 60, and not currently covered by VIPA’s LOL policy you may still be accepted under this policy. Contact the secretary for further details.

Secretary - VIPA

p. 1800 116 460e. [email protected]

What about a Temporary Suspension of Licence?The VIPA LOL policy will cover you for 85% of your salary for up to 2 years if you are unable to fly due to injury or illness as covered in the policy Product Disclosure Statement.

Exclusions and Terms and Conditions Existing LOL policies available to pilots have exclusions on insurance payouts for some of the most common causes for people making a claim. They exclude or severely limit payments where a pilot is unable to fly as a result of degenerative diseases, mental illness, injuries relating to alcohol use and a whole raft of other conditions. You should check each product disclosure statement for exclusions.

The VIPA LOL policy has dramatically reduced those exclusions, to provide you with a policy to provide genuine protection against a suspension or cancellation of your licence.

No Application FormIf you are under the age of 60 (or over the age of 60 and already insured under the VIPA policy), there is no application form to complete in order to join the 2011 VIPA LOL policy. In addition to this, under the standard policy any pre-existing medical conditions you may have are automatically covered. NO OTHER LOL INSURANCE POLICY PROVIDES YOU WITH THESE ADVANTAGES.

Alternative insurers have an application process that includes up to 40 medical questions. It is also common for pre-existing conditions you have to be excluded from your cover meaning you are not entitled to insurance cover should any of those pre-existing conditions prevent you from flying.

Under the standard VIPA LOL policy there are NO HEALTH EXCLUSIONS and ALL PRE-EXISTING CONDITIONS ARE COVERED.

Age VIPA PolicyVirgin Policy

MBF (AFAP) Policy

30 $785,362 $500,000 $550,000

35 $785,362 $500,000 $550,000

40 $785,362 $500,000 $550,000

45 $785,362 $500,000 $550,000

50 $785,362 $358,000 $495,000

55 $785,362 $358,000 $440,000

60 $785,362 $358,000 $330,000

The above calculations are taken from the product disclosure statements of each of the major LOL policies. They make certain assumptions and you should evaluate each policy for your own particular situation.

All VIPA LOL members are in fact covered for 85% of their salary, up to a salary of $195,529 – so if your salary increases, your LOL cover also increases – automatically!

This information is for illustrative purposes and general in nature. It has been prepared without taking into account any of your objectives, financial situation or needs. You must therefore assess whether this product is appropriate for you, in light of your own individual objectives, financial situation or needs. It is advisable that you obtain professional financial advice before making any decisions. Examples do not take account of your individual tax situation. You should seek advice from a qualified professional regarding taxation. You should obtain a Product Disclosure Statement in respect to the product prior to making any decisions to acquire this product. VIPA is not an insurance broker or advisor and the information in this document and/or on the VIPA website are provided for the information of members only. VIPA does not accept responsibility for any loss, expense or liability which you may incur from using or relying on the information in this brochure/flyer. VIPA does not accept liability for any decisions made by any person in relation to this insurance product. Photography by Mehdi Nazarinia

new

new

new

LOSS OF LICENCE POLICY EXCLUSIVELYFOR VIPA MEMBERS

new Portability

new Shorter Temporary Payment with a Large Lump Sum Payment

new Lump Sum Only Option

new and improved features


1. How much can I claim back from the company for my Loss of Licence Insurance?Currently you can claim back up to $2589. From 1st July 2011, the maximum claimable will be $2640.

2. I’ve already paid my premium with another provider. What can I do?Your insurance provider is required to provide you with a pro-rata refund of your premium. Remember that you can claim your Loss of Licence up to the specified limit back from the company, which may cover some or all of your out of pocket expense. Please contact Tim Elstoft, from Como Financial Services, at [email protected] to discuss your situation further.

3. Why do we focus on Temporary Loss of Licence?You are more likely to temporarily lose your ability to fly, rather than permanently. In this scenario, you would likely not qualify for a lump sum payout but would rely on the monthly payments provided by the policy. Therefore we have developed a policy that provides excellent temporary loss of licence (85% of your salary/month), with no health exclusions that would prevent you from claiming, yet still with a high total loss of licence benefit – that stays the same as you get older.

4. Why is NO health exclusions so important? Most loss of licence policies contain health exclusions which, in practice, make it more difficult to successfully claim in the event of an inability to fly. Firstly, you are asked various health questions. This may result in

certain exclusions being placed on you from the start. Then the policy may contain health exclusions for which it will not pay a claim or only pay a reduced amount (e.g. Depression, some sports, injuries after drinking alcohol). When you join the VIPA policy, all existing health conditions are accepted. Furthermore there are no health exclusions on the Standard VIPA policy.

5. You’ve included a table for 737 Captains – what about my situation? A table for B737 Captains was included for an easy comparison to other LoL providers. The policy will provide you with 85% of your salary for 2 years, with a further 3 years paid as a lump sum if you still cannot work. At the insurers discretion, you may be paid the entire amount upfront as a lump sum.

6. Why is the policy premium the same for all pilots?The VIPA policy is a group policy, so the premium is the same for all members irrespective of age. The benefits of a group policy include accepting existing health conditions, no health exclusions, and no decrease in benefits as you get older.

7. What’s the difference between Loss of Licence insurance and Income Protection? Should I have one or the other?Loss of licence insurance provides you with a benefit to enable you to regain your health to a point where you can continue flying, or provide you with the means to retrain into another vocation. Income Protection insurance provides you with a secure income stream at a guaranteed level into the

future should you no longer be able to work as a pilot. Both are important, and many insurance brokers recommend that you take out both types of insurance to ensure you can meet your present and future financial needs. You should see a financial advisor to discuss your individual situation.

8. I am a V Australia pilot - can I be covered by this loss of licence insurance?Yes, if you make the payment out of your own funds. Currently V Australia have their own loss of licence policy for which their pilots cannot opt out of. VIPA are making representations to V Australia to put in place a reimbursement system so that V Australia pilots have a choice for their Loss of Licence policy.

9. I have Sunsuper Income Protection Insurance which covers my income for the first 2 years, do I still need this insurance if I have VIPA LoL?VIPA LoL pays you 85% of your salary for 2 years, with a further 3 years paid as a lump sum if you still cannot work. You should contact your financial advisor to discuss whether you still need the Sunsuper income protection insurance. Alternatively, contact Tim Elstoft, from Como Financial Services, at [email protected] to discuss your situation further.

10. When do I have to pay my LoL premium?New VIPA members must pay within 30 days of the effective date of joining VIPA. Members renewing their LoL for the 2011/2012 year must pay their Annual Payment by 30th May.

VIPA Loss of Licence FAQ

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9

V Australia EBA UpdateWe have reviewed the draft agreement to provide you with advice on the proposed EBA.

V Australia Consultative Council (VACC) – Is this consultation or obfuscation?The intent of these types of meetings is for the union/s and the Company to sit down and go through matters in a practical and efficient manner that doesn’t involve the immediate resort to litigation or dispute resolution. However, the way the Company has worded the VACC is one that would not lead to the efficient operation and representation of employees by VIPA or the AFAP, the two bodies elected by pilots.

Consultation and ‘principally engaged in long haul flying’ – Devil in the detail?Sub-clause 2 (b) states that the agreement applies to V Australia pilots principally engaged in long haul flying.

All the discussions so far have centred specifically on long haul pairings, and the credit hours system takes this into account.

Sub-clause 8.10 (b) (ii) allows for the consultation clause to be triggered if “pilots are no longer principally engaged in long haul international flying”

There is no definition of what “principally” means. VIPA has, on countless occasions, amended principally out and inserted exclusively in its place. Our amendment would read ‘exclusively engaged in long haul flying’ – this form of words would avoid doubt or loopholes.

Practically, this clause allows the company to introduce short/medium haul domestic or international sectors, without consulting the pilots because pilots may still be principally engaged in long haul operations. With a 165 credit hour system, this could potentially have a major impact on rostering, days off, fatigue management and lifestyle.

Employment Types and Employment flexibilityProvisions in sub-clauses 9.1 and 10.2 allow far too much scope for the Company to undermine the EBA document by offering external pilots positions on different conditions to those in the document.

In a nutshell, the Company can offer employment to “fixed term, fixed task or maximum period basis” employees for a maximum of 2 years.

Given the wide range of experience now in the group, we see no need for any “Direct Entry” requirement, and the Company is unable to offer any examples of where this may be needed, therefore we cannot support this clause.

The Company has also inserted a wide ambit for Individual Flexibility Agreements (IFA)

(agreements that sit outside this agreement) to apply to remuneration, allowances, leave, when work is performed and also the bond repayment scheme.

VIPA had a narrow scope of matters subject to an IFA such as salary sacrificing and specific leave types. Our purpose in limiting the application of the IFA is not to undermine this agreement with side deals with the Company.

Preferential Bidding System (PBS)A good development in the agreement – but the lack of timelines surrounding its implementation significantly affects other parts of the agreement such as rosters and also the CSPs.

RosteringA move from the 28 day roster to a 56 day roster remains. Transitional provisions relating to the move from the 28 day roster are not included despite requests from VIPA.

The Crew Scheduling Provisions (CSPs) will be annexed to the agreement, which means it is outside the EBA – and subject to consultation but NOT agreement.

The Company’s 56 day roster period is based on an overtime threshold of 165 flight hours and a maximum of 1000 hours per year. VIPA had previously proposed a system where the maximum hours were 142.5 hours per 56 day roster period.

Overtime / Credit System:l 165 hrs per 56 day rosterl Flight time 1:1 from chocks off to chocks

on. Greater of scheduled or actuall 1hr for positioning between SYD/MEL &

SYD/ BNEl All other positioning 50% of scheduled

flight timel Standby is 5 hours creditl Ground duties 5 hours creditl Admin work 5 hours creditl Sim duties 5 hours creditl Open day 3 hours creditl 20 guaranteed days off for line pilots and

22 for Check and Training pilots.

Note: There is no minimum daily credit.

AnalysisOrdinarily, ULH flying should allow pilots to achieve extended periods free of duty, to adequately allow for recovery from fatigue, and still leave enough time available to enjoy a reasonable lifestyle. Unfortunately, the high overtime trigger combined with only East/West flying allows for significant variations from the intent, once in the hands of crew planning.

For instance, if a pilot did not do any extra duties, he/she could feasibly do 6 trips per roster with little, or even no overtime. Furthermore, the low credit for open days will still allow the Company to continue with the current practice of 4 or less trips per

roster, filling the remainder of the roster with open days, thus impacting a pilot’s ability to maximise the use of days for their own benefit when the Company has no genuine requirement for their time.As earlier paragraphs allude to, if the Company were to introduce shorter sectors, without revisiting these rostering rules, then we could see a significant impact on our lifestyles. We have previously seen the effect of this on lifestyle and expenses with the Fiji turnarounds. Despite repeated requests, the Company has been unwilling to share with the unions their resource planning requirements, so that we can understand why they are insisting on relatively unfettered access to open days. As experienced long haul pilots, your VIPA representatives are very concerned about the sustainability of this type of rostering, particularly when we see our domestic colleagues guaranteed 4 more days off per 56 day period. When VIPA enquired as to why management believes that Long Haul pilots, doing exclusively East/West flying, need less time to recuperate than our domestic colleagues, they were unable to provide an answer. Our management appears unwilling, or more plausibly unable, to accept our contention that days off should not just be used for recuperation. We also need to have a reasonable amount of quality time with our families and friends to compensate for the amount of time we spend away and the important events we forsake in the course of our employment.VIPA proposed an alternative system that guaranteed the company 5 trips per 56 days, 3 standbys and all regulatory training requirements, before triggering any overtime limits, which is what the Company had stated they needed. The VIPA proposal also ensured that if a pilot was rostered for a 6th trip, overtime would be assured. - Continued on page 10


V Australia EBA UpdateThe benefits of our system was that it gave the Company everything that it had asked for (5 trips, 3 standbys, sim duties and 3 ground school days per year) before triggering overtime, whilst allowing pilots enormous flexibility to bid for pairings that were the best fit for their lifestyle. Unfortunately, the Company seems addicted to open days as a way of making a less than optimum rostering system work, and it appears they have rejected our proposal.

VIPA contends that with callout pay, open days are not necessary at all, thus reducing crewing numbers and therefore costs. Arguably the same could apply to standby days. Additionally, the Company is proposing that there be a standby before every flight from commencement of this agreement. It is interesting to note that we have operated for two years with no standby coverage in Melbourne or Brisbane. The Company has offered no explanation as to why there is this sudden change in requirement for standby coverage at these ports.

It is VIPA’s view that the Company requirement to roster open days, in blocks of 3 or more, will have a significant negative impact on pilots’ ability to bid for days off in a manner that provides meaningful benefits to lifestyle requirements. It should also be noted that the Company is content to insist on blocks of open days, but does not show the same commitment to days off for pilots.

It should also be considered that there is no provision for minimum days off between East/West flying. Whilst the FRMS system should cover this, you can rest assured that it will only allow enough time to recover, it will not factor any time to have a bit of quality time doing what you enjoy. In a worst case scenario, where a pilot is flies LAX-AUH-LAX-AUH-LAX the impact on the pilot could be severe. Most of us are aware that once acclimatised to the Middle East, it can take anywhere up to 7 days to re-acclimatise to Australia.

It is no accident that Qantas would not allow their pilots to fly this sort of pattern.

As a solution to this issue, VIPA has proposed that the Company build some W patterns. W patterns are where you would do two trips to LA or Abu Dhabi with minimum rest (24hrs) in between. These patterns allow a pilot to get a lot of work done in a short period of time, whilst minimising the impact of time zone changes, and at the same time creating large chunks of days off to manage fatigue and lifestyle. This type of rostering has been used quite successfully at numerous Long Haul airlines around the globe. It is acknowledged that they don’t suit everyone, but this is easily managed through the PBS. We would suggest two layers of protection, where a pilot would first have to opt in to the W pattern option, and then bid for W patterns through the PBS. A pilot could not be called out for a W pattern unless he/she agreed.

Simulator credits for trainers are also too low as it does not adequately reflect the amount of planning and preparation required for instructional simulator duties.

V Australia Risk Management System and Crew Scheduling ProvisionsThe VAFRMS Governance Committee has no pilot representatives despite requests from VIPA to include an observer at these meetings.

The Crew Alertness Study Team (CAST) has two nominated pilot representatives both pairing and review and CAST. VIPA would contend that these pilot representatives should be drawn from the respective unions.

Remuneration - B Scale remains and Salaries will be eroded by InflationThe Company has presented their latest remuneration offer, which is reproduced in the following table:

In summary:l The 5% STI has been removed l The 3% Profit Share has been

discontinued l Superannuation is additional, but

reduced from 12% to 9% l Salary based on 165 credit hours in

56 days l There is no CPI component

l Current Captains and FOs will start on Level 6

l CRFOs with ATPL to start on Level 3l CRFOs without ATPL remain on

$65,138 until they obtain their ATPLl New Captains to start on Captain

level 1 l New FOs to start on level 1

Below is a comparison to see how the proposed remuneration package stands, based on 165 hours per 56 days:

Level CRFO (with ATPL) First Officer Captain 1 $72,641 $120,290 $186,767 2 $74,820 $123,899 $192,370 3 $77,064 $127,616 $198,141 4 $79,376 $131,445 $204,085 5 $81,757 $135,388 $210,208 6 $84,210 $139,450 $216,514 7 $143,633 $223,009 8 $147,942 $229,699 9 $152,380 $236,590 10 $156,952 $243,688

Current Proposed: Future Crew: Using B737 Current Crew Yr1 (B Scale) RatesCaptain Basic $191,227 $216,514 $186,767 $190,889STI $9,561 $0 $0 $0Profit Share* $5,736 $0 $0 $0Overtime $0 $0 $0 $29,756 $206,524 $216,514 $186,767 $220,645

First Officer Basic $121,900 $139,450 $120,290 $124,077STI $6,095 $0 $0 $0Profit Share* $3,657 $0 $0 $0Overtime $0 $0 $0 $19,308 $131,652 $139,450 $120,290 $143,385

CRFO Basic $61,285 $77,064 $72,641 STI $3,064 $0 $0 Profit Share* $1,838 $0 $0 $66,187 $77,064 $72,641

* Promised on the commencement of employment but, as we understand it, not paid and now discontinued.


V Australia EBA Update

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Company Philosophy - Virgin should be 79% of Qantas…As discussed in a previous EBA update, the Company has pitched the base salary to be between the Jetstar and Qantas base salaries. However, this is misleading as both Jetstar and Qantas pilots earn significant remuneration from overtime and retention payments. The proposed V Australia overtime threshold means that it will be unlikely that pilots achieve overtime at all.

On the other hand, a Jetstar pilot working reasonably hard earns about $240k, which includes a retention allowance, bonus and productivity pay, but excluding superannuation. If a Qantas 744 Captain flew the rosters that V Australia is proposing, they would earn a salary around the $310k-$350k mark on average, excluding superannuation. Furthermore, under the QF Long Haul EBA, a Captain could not fly the patterns V Australia is proposing for a continued period of time because it would result in excess of 260 credit hours per roster. They are limited to 160. So in practice, Qantas have to employ approx 1.67 crews to fly the patterns V Australia is proposing for V Australia.

What about CPI?There is no CPI component to the proposed salary tables. The intent of the table is to imply that the Company is rewarding experience and loyalty, whereas in reality each step is 3%, which is less than the latest annualised ABS CPI figure of 3.3% (March 10 - March 11).

It is clear that with no CPI component of increase each year, all levels are constantly eroding. This means that the starting salary of each rank will be worth less each year to the person achieving it.

B777 rates lower than B737As you can see above, the Company’s remuneration proposal would put V Australia flight crew on significantly worse footing than flight crew operating Virgin Australia B737 aircraft. This situation is made worse when you compare B737 rates to new future B777 Captains on the B scale year 1 pay rates.

Overall …It would appear to VIPA that this is just the next step in trying to get a current group of pilots to sell out the next generation. Keep in mind Virgin used this strategy effectively at VB, where they promised 20% more to VB pilots for the 777, in return for lower salaries on the Ejet.

History now shows that there was never any intent to pay the increased salary to 777 pilots, yet they have been enjoying the benefits of reduced salaries on the Ejet for some years. We expect that the Company will be held accountable for this

deception at the upcoming Virgin Australia EBA negotiations.

OvertimeWhilst the introduction of overtime is welcomed, it should be noted that due to the excessive credit hours attached to overtime, it is very unlikely that many pilots will ever see any actual overtime payments in their pay. This should be taken in to consideration when assessing the pay offer.

Overnight Meal and Incidental AllowancesOvernight allowances entitlement is inconsistent with Virgin Australia. Virgin Australia pilots allowances are calculated from sign on to sign off, and to date have been significantly higher than VA, whereas the proposal for VA is to be paid from sign off to sign on. This results in a substantially less quantum of allowances than a Virgin Australia pilot would receive for a similar duty.

This should be viewed in light of the tax free nature of allowances and the impact this would have on comparative remuneration between VA and Virgin Australia.

Loss of LicenceVIPA has made it plain that $1600 for Loss of Licence reimbursement is not satisfactory. The reimbursement should be the same as Virgin Australia and we would consider up to $2645 as the appropriate and reasonable reimbursement for Loss of Licence.

As one VIPA delegate remarked during the negotiations, John Borghetti could fund the difference between $1600 and $2645 out of his own pay packet. It is not a large amount of money!

The ideological approach of the Company, coupled with the oft stated desire for integration of the Virgin Blue Group seems to make this offer on Loss of Licence both perverse and ill conceived.

VIPA has long argued that V Australia pilots should have a choice of insurer and receive full reimbursement for their Loss of Licence insurance, just like their Virgin Australia cousins.

Virgin Group OpportunitiesVIPA acknowledges the cyclical nature of our industry, and understands that firm commitments to time frames for career progression are not possible, however, we believe that CRFOs should be given more guidance on time frames for promotion than exist in this document. We would like to see some clear guidelines around when a CRFO will become eligible to be considered for transfer to Virgin Australia.

We note that in the latest iteration of the document appears to have deleted the

reference to V Australia being ‘transparent’ in its selection process.

CSPsThe current CSPs are not acceptable under the proposed rostering system.

Delegates RightsVIPA alone has raised this issue.

Unfortunately the Company has rejected the VIPA proposal that the unions have access to a noticeboard and to meet new employees for the purposes of informing potential new members on various matters.

Training PilotsThere is no provision for the appointment of Training Pilots, and no provision for amount of work for training pilots, ie how many sim duties/training duties.

Any queries please call Simon O’Hara .


A growing membership base will allow VIPA to reduce fees, increase benefits and provide increased influence when negotiating on your behalf. Towards that end, the Committee of Management is pleased to offer a referral discount on membership fees to existing members who recruit new members to VIPA.

The discount is progressive, calculated on the number of members recruited within one membership year:

1 member: 10% discount 2 members: 15% discount 3 members: 20% discount 4 members: 25% discount

The discount is capped at 25% for four members, and will be applied to the referring members fees in the next year. Please ensure the new member records your name in the referring member field of the application form.

It is a condition of the discount that the new member becomes financial before the discount can be applied. Contact the Treasurer for further information.

Remember – The more members we have, the greater our ability to effect change for the benefit of all Virgin pilots.

Full Name: ................................................................................................................................................................

Postal Address: ........................................................................................................................................................

Suburb: .....................................................................................................................................................................

State: ............................................................................................. Postcode: ..........................................................

Home Phone: ...........................................................................................................................................................

Mobile Phone: ..........................................................................................................................................................

Date of Birth: ............................................................................................................................................................

Email Address: .........................................................................................................................................................

Employer: .................................................................................................................................................................

Base: ............................................................................................. Fleet: .................................................................

Rank: ............................................................................................. Licence: ATPL / CPL

Referring Member: ...................................................................................................................................................

Employment: p Full Time p RO/RO Other: ..............................................................

Payment: Invoiced: p Annual p Quarterly

Direct Debit: p Annual p Quarterly p Monthly

I apply for membership of VIPA.

• I am employed as a pilot, on airline services within or extending beyond Australia, by Virgin Australia Airlines Pty Ltd, or its related entities, its successors or assigns.

• I agree to abide by the rules of VIPA (the “rules”) as amended from time to time.

• I understand that I remain a member of VIPA until I revoke my membership in writing in accordance with the rules and with the Fair Work Act 2009

• I agree to pay annual subscription fees in accordance with the rules and that the annual subscription fee of VIPA is 0.8% (+ GST) of my annual gross salary as amended from time to time.

• I have read the information supplied relating to financial obligations of membership and the circumstance and manner in which I may resign my membership.

• I understand that my initial invoice will include a $15.00 (+ GST) admission fee.

Signed: .......................................................................................... Dated: ..............................................................


VIPA - ABN: 81 242 166 461PO Box 368, Tullamarine Business Park, Tullamarine VIC 3043.P: 1800 116 460 E: [email protected] W: www.vipa.asn.au

Member Referral Discount

VIPA Membership Application FormYou will receive a copy of the rules of VIPA once your membership application has been submitted. Please email the secretary ([email protected]) if you would like a copy of the rules of VIPA prior to submitting your application.

DisclaimerThe inclusion of advertising material on various products, services and resources in the VIPA newsletter is not to be interpreted as VIPA endorsement of the products, services or resources. Although the VIPA newsletter is the official newsletter of VIPA, the views expressed by individuals in any article included are not necessarily those of VIPA. All rights reserved. The material in this publication may not be reproduced without the expression permission of VIPA. VIPA does not accept any responsibility for any material sent to their office and will not be liable for any loss or damage to any such material.

The material and information contained is this Newsletter are for general information purposes only. You should not rely upon the material or information in the Newsletter as a basis for making any business, technical, legal or any other decisions. Whilst we endeavour to keep the information up to date and correct, VIPA makes no representations or warranties of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the newsletter or the information, products, services or related graphics contained on the website for any purpose. Any reliance you place on such material is therefore strictly at your own risk.

12

Date post:	25-Mar-2016
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VIPA News Apr-Jun 2011

Documents