ASU Calls Out Virgin’s Underwhelming Offer

The ASU has analysed Virgin’s recently-tabled second offer, and it doesn’t stack up. Our Union is immediately concerned that Virgin's proposal may leave some workers worse off than the minimum award conditions. At best, the offer appears to sit only marginally above the legal minimum, by around 1%.

Following the ASU’s intervention, Virgin has stepped back to reassess its offer against the Fair Work Commission’s Annual Wage Review, which sets the legal minimum pay rates. This is significant.

Our Union made it clear that the offer did not cut it and pushed Virgin to review its position in light of the new minimum rates. No other bargaining representative took this step. 
The ASU acted quickly to ensure workers were not bargaining from a weak starting point.
Any new offer must do more than just meet the minimum legal standards. It must deliver real increases that respond to rising cost-of-living pressures. Virgin has confirmed it will return to the table next week.

Context: the last agreement and what has changed

In the last bargaining round, the ASU secured a front‑loaded 8.75% increase in the first year, followed by ongoing increases.
Since then, global economic events have driven higher inflation and cost-of-living pressures. That has changed the landscape:

  • Award wages have increased through the Annual Wage Review each year during the Agreement. This is led by unions like the ASU in the FWC to make sure minimum wages keep up with inflation
  • The gap between Enterprise Agreement rates and Award rates has narrowed during this time due to the high inflation
  • Enterprise Agreement rates are now sitting closer to the minimum than originally intended when the agreement was negotiated in 2023
To respond to this, the ASU has claimed 8% per year for any new agreement to make up for this and to make sure no worker goes backwards.

What has changed - the FWC decision
Thanks to union members, the FWC has mandated a 4.75% increase to Award wages.
These are the legal minimum rates. No employer can go below them.
Where Award rates rise above Enterprise Agreement rates:

  • Pay must be lifted to the new minimum
  • This happens automatically - it cannot be negotiated away

What this means for Virgin workers
Under the current Enterprise Agreement:

  • The new Award rates will overtake Enterprise Agreement rates mid-year
  • Virgin must lift pay to the new legal minimum
Workers will receive a pay increase, but it is being delivered through union advocacy in the FWC, setting a new legal minimum standard - not through Virgin’s bargaining offer.

For most workers, we have calculated this will be around ~3% (approx.), taking effect after the first full pay period in July if no new agreement is in place by then. This is with workers not trading away conditions like sick leave and DILs, which the company has so far insisted were needed to secure any higher pay increase.

What this means for bargaining
This strengthens workers’ position.

  • The minimum has increased thanks to unions fighting in the FWC for an award wage increase
  • Workers are getting a pay rise without giving anything up
  • The company is now under pressure to improve its offer
Most importantly, workers have certainty that a pay increase is already coming, and that gives confidence to campaign hard for a deal that delivers more.

Stay involved
Bargaining is continuing. Now is the time to stay engaged, talk to your workmates, and support your delegates. If you have any questions or you’re interested in getting more involved, talk to your Aviation Industry Organiser Don Brown.

Join the ASU to win fair pay  
Unions have already delivered Award wage increases through the FWC. Now it’s time to build on that win and secure better outcomes at the bargaining table. If you’re not yet a member and want a better deal, join today and stand with us!  
 

Above: The ASU is the union fighting for workers at Virgin Australia.