Virgin faces strikes ahead of Christmas and IPO

afr.com:

The Transport Workers Union has ratcheted up pressure on Virgin Australia over pay agreements as the airline resumes plans to re-list, with another group of workers raising the prospect of strikes before Christmas.

Virgin cabin crew have applied to the Fair Work Commission for a protected action ballot after ground crew did the same three weeks ago as talks over a new enterprise agreement stalled.

Virgin’s cabin crew say the airline’s approach to bargaining is frustrating.  Glenn Campbell

The latest breakdown in pay talks comes as Virgin looks to resume its initial public offering efforts, targeting a May listing. Investors have flagged cost pressures as a major concern for airlines, with jet fuel prices soaring alongside the wage and fleet replacement bills.

The IPO was pushed back as Virgin looked to embed profitability, recording its first full-year profit in more than a decade. But the prospect of strike action could destabilise the airline heading into the busy Christmas period.

The TWU said Virgin cancelled a meeting with cabin crew due last week, labelling the airline’s approach to bargaining “frustrating”.

TWU national secretary Michael Kaine said Virgin’s private equity owners Bain Capital “have not held up their end of the bargain to correct rock-bottom pay, improve work-life balance, and fix unsafe rostering”, despite loyal workers restoring the airline to profit.

“Pay and conditions are inextricably linked to aviation workers’ ability to ensure the safety of passengers and crew. Protected industrial action is always a last resort, but our members know there are no second chances at 30,000 feet,” Mr Kaine said.

Virgin tried unsuccessfully to have the notice period for strike action extended to seven days from