Virgin Australia pilots have secured pay rises of up to 28 percent. The Australian and International Pilots Association, which represent Qantas long-haul pilots, has today congratulated VIPA - the union representing Virgin Australia and V Australia pilots - and Virgin Australia CEO John Borghetti for successfully negotiating the airline’s first enterprise agreement.

In addition to the pay rise, the agreement between Virgin Australia and its pilots provides for a comprehensive system for consultation between management and pilots, the introduction of a credit system, the cornerstone of this agreement, that measures overtime and work performed, a new insurance system for pilots and back-pay pay rises from 1 July if the agreement is voted up.

“VIPA acknowledges that this good result would not have occurred if not for the imprimatur of the CEO, Mr John Borghetti,” VIPA Executive Director Simon O’Hara said today.

“There is no doubt that Mr Borghetti’s arrival ushered in a new era of industrial relations within the Virgin Australia Group. VIPA supports the new CEO and also his mature approach to organisational and cultural change.”

The landmark agreement comes on the same day British Airways announced its biggest pilot recruitment drive in ten years, with 800 new pilots to be taken on by 2016.

Qantas negotiations stall

In a stark contrast, negotiations between AIPA, representing Qantas pilots, and Qantas management have stalled due to management’s refusal to consider a Qantas flight / Qantas pilot clause in the new agreement. AIPA’s proposed clause would aim to ensure that Qantas (QF) flights are operated by Qantas pilots and not outsourced alternatives.

AIPA President Captain Barry Jackson said he hoped a little of the goodwill from the Virgin negotiations and the BA announcement could rub off onto the current situation at Qantas.

“While our airlines and circumstances are very different, what is universal is the mutually beneficial outcome that can be reached when a CEO leads with a positive and open approach to the negotiation process,” Capt. Jackson said.

“AIPA has long argued that there is massive scope for a mutually beneficial outcome, but management seems wed to a hard-ball, no-compromise approach when it comes to their misguided offshoring and outsourcing agenda.

“Qantas pilots do not seek acrimony, nor do they relish the idea of a protracted and bitter industrial battle. That’s why this is the first time we’ve been involved in industrial action since 1966.