Alaska Air Group is reportedly preparing a $2 billion takeover of Virgin America airlines. Pictured: The tail of a Virgin America jet is seen in San Francisco, Nov. 6, 2014.
Alaska Air Group is reportedly preparing a $2 billion takeover of Virgin America airlines. Pictured: The tail of a Virgin America jet is seen in San Francisco, Nov. 6, 2014.

The Fair Work Commission (FWC) has asked the pilots of Virgin Australia Airlines to agree to a 21% increase in their salaries over three years.

The FWC's involvement came after the Transport Workers Union (TWU), which represented Virgin Australia pilots, rejected a previous proposal in July 2024.

The TWU has secured important concessions on wages, work-life balance, and fatigue management under the newly proposed agreement, marking a landmark victory for pilots achieved after months of negotiations, the Australian Aviation reported.

"It should not have taken months of negotiations, a no vote, and a Fair Work Commission process for Virgin to come to the table with a fair offer that restores the pay and conditions decimated during the administration process," TWU national secretary Michael Kaine said in a statement.

"There is significant work Virgin still must do around rostering and fatigue issues. With Virgin soaring back to profit and a new CEO waiting in the wings, it's time for Virgin to get back to the fundamental business of listening to its people and rebuilding morale."

Following the airline's administration process' takeover by US equity firm Bain Capital in 2020, pay and certain conditions were "decimated."

"Last year ground crew and cabin crew narrowly avoided having to take industrial action and settled decent agreements ensuring pay increases and work-life balance. With all three groups having achieved agreements, Virgin and Bain must now recommit to the plan workers put forward last year to ensure the airline's long-term future."

Virgin Australia Captains are poised to receive a significant pay rise of A$42,000 (approximately $28,200) under the new contract, reported Aerotime. The agreement includes a 15% salary increase for both Captains and First Officers in the first year, followed by 3% annual increases in the subsequent two years.

In exchange for this, pilots will forgo six designated days off per year, reducing their total from 156 to 150, on top of their existing six weeks of annual leave.

The airline has said it will decide after putting the conditions to a vote in October.