Oct-Nov 2010 VIPA News

President’s Report Senator Nick Xenophon’s success in instigating a senate inquiry into the aviation industry and pilot training standards has been welcomed by the professional pilot

community, including VIPA. Members will have seen the submission that VIPA made to Senator Xenophon. The Association will be making further submissions to the senate inquiry.

This inquiry into pilot training reflects mounting concern by the professional pilot associations at the apparent declining standards in training and the methods employed by some training organisations.

It is bewildering at the manner in which airlines have exploited individuals, effectively requiring them to purchase a position in return for ever-diminishing salaries and declining employment conditions. Hopefully the inquiry will result in more rigid regulation, transparency and accountability.

With Virgin Blue formally commencing EBA negotiations before the end of the year and the V Australia EBA negotiations already underway the VIPA Executive has a very full agenda. As part of the preparation for the forthcoming round, the CoM has been running a series of surveys seeking members’ expectations, opinions and aspirations in order that the views of the membership can be fairly and equitably represented. I encourage you to take the time to let us know what is important to you in your working conditions.

It has become apparent in the VA negotiations that the company has an agenda intent on further diminishing terms and conditions. The indifference towards the unions and disrespect to their Officers has been evident, and amply illustrated by attempts by persons within the People Department to try to influence who attends as union representatives - through manipulative rostering and a refusal to allow duty travel.

The last EBA was voted in by the narrowest of margins and only after threats about the possibility of losing E Jet commands, which caused some of our colleagues to go weak at the knees and vote in an EBA that was less than appropriate in some areas. That EBA failed to address some key issues which, had it done so, could have prevented a lot of the angst surrounding the manner in which the company handled the GFC cutbacks. We must not repeat those errors.

I have little doubt that the forthcoming VB EBA will be a protracted affair, but those who vote on it will eventually decide the outcome. If the pilot community is united and supportive of its negotiators it will be possible to obtain a good outcome. If our colleagues are indifferent and disengaged, this will be reflected in the outcome.

VIPA membership continues to grow at a satisfactory rate. You can make an invaluable contribution to the Association by encouraging as many of your friends and colleagues as possible, to join and support VIPA. Unity is our strongest asset leading into these negotiations and our voice grows with every new member joining.

VIPA endeavours to deliver top quality industrial and legal representation to its members. This experience and quality of service to members comes at a price, and is paid for through your subscriptions. I am disappointed and concerned that there are a number of members who have failed to honor their financial obligations and have overlooked their subscriptions. This is not only unfair to the majority of members who honour their undertakings, but also places financial constraints on the Association. We aim to reduce membership fees in the future, but the CoM will be unable to do so until all members have met their obligations.

Apathy remains the biggest problem within our pilot community. If some of our colleagues are really serious about a long career in the airline industry, then they must become engaged and assist in the process of restoring our professional standing, resisting the drive to reduce terms and conditions.

INSIDEPresidents Report ..............................1VIPA first AGM a Success .................1Executive Directors Report ...............2Meet the Committee ........................2/3Affiliation with the ACTU ...................4Member benefits growing .................4The heart of the matter ......................5V Australia EBA Update.....................6Engaged staff do their best ..............7Income Protection Insurance ...........8Loss of Licence FAQ .........................8VIPA initial EBA survey results ........9The Senate inquiry ...........................10VIPA first AGM continued................10Group opportunities take shape ....11Membership Application .................12

Editorial Team

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

Karl DavisRachel DavisBen JaenschHound Dog Graphics

Photo ContributionsGet your photo published in the next VIPA News… Submit any relevant snaps taken of the Group’s aircraft, or a view out the office window. Photos will be published with due credit. Submissions to: [email protected]

Copyright 2009-2010 VIPA

If you hope for a satisfying career and financial security in retirement then it is important that you understand that there only remains a narrow window of opportunity for you to become engaged and help to do something about it.

John Lyons President

OCTOBER/NOVEMBER 2010

VIPA’S First AGM a SuccessThe first VIPA Annual General Meeting, held on Friday 17th September at the Melbourne Airport Hilton, was a successful night. Twenty-five members came along to contribute to the evening, with a dozen proxies held by the VIPA Committee.VIPA President, John Lyons, opened the evening with an informative speech including details on:

l the rapid growth that VIPA is experiencingl the productive relationship VIPA is cultivating

with Virgin Bluel the effective work that Simon O’Hara, the

Executive Director, is doing in dealing with issues

l our developing relationship with AIPA and affiliation with the ACTU which will allow us to have a stronger voice going forward..

Continued on page 10.

VIPA NEWS OCTOBER/NOVEMBER 20102

Executive Directors Report for the AGMThis year the VIPA team has been able to record a number of milestones in what is an exciting time for the organisation. These include:

Membership GrowthPilots continue to join VIPA, understanding that not only do we offer a great range of member benefits, but also that our core task is representing members in a very straightforward manner.

Member BenefitsLoss of Licence and Life insurance are just two of the member benefits that VIPA has secured this year. VIPA conducted successful road shows earlier in the year for members regarding these two products. Excellent numbers were recorded in Sydney, Melbourne and Brisbane (State of Origin notwithstanding).

Watch this space for future member benefits.

Legal and IndustrialBargaining for V Australia EBABargaining for the EBA has taken place during the course of 2010. It seems that only now the company is getting down to negotiating specific elements of the EBA. Some of the highlights of the negotiations have been the following:

l VIPA have submitted a log of claims to V Australia

l VIPA’s key three issues being tabled: career path, remuneration and rostering.

l A full and frank view articulated by delegates about V Australia and the working conditions in place.

l Seeing the text of some of what V Australia would like to have in the EBA

l V Australia making it clear that they believe that the terms and conditions for Virgin Blue pilots is not the benchmark of the group, but that the Pacific Blue and V Australia conditions are the norm of working conditions in the group.

l Confirming that the V Australia negotiations will have an impact on the negotiations for Virgin Blue.

Individual MattersWe continue to receive a number of individual matters ranging from incorrect pay, fatigue issues and of course advice and attendance regarding dispute resolution.

Media, Off-shoring and Pacific BlueVIPA has successfully engaged with the media regarding off-shoring and strongly supports AIPA in its fight against Jetstar.

VIPA has written to the CEO, John Borghetti, and requested clarification on the issue surrounding Pacific Blue and its potential for basing in Australia. John Borghetti has written to VIPA unequivocally stating this notion of Pacific Blue basing in Australia will not happen.

Meeting with the Virgin Group CEOVIPA was the first professional pilot organisation to meet with John Borghetti and came away very impressed by him from this meeting. It was clear that John Borghetti has a vision that he is prepared to share with others and at least say that he is prepared to bring people along with him.

Open, honest and accountableVIPA is open to new representations and is always prepared to discuss new options and give our members an honest appraisal of matters that we deal with on a daily basis.

“Third Way”VIPA is committed to endeavouring to negotiate with the Virgin Blue Group in a collaborative manner. As a professional organisation, it behoves us, to attempt to approach negotiations and discussions in a manner befitting our skills and experience.

Simon O’Hara Executive Director

John LyonsMy name is John Lyons. I am a Melbourne based Captain on the Boeing 737 with Virgin Blue and am one of the founding members of

VIPA, of which I am currently the President.

My flying career commenced in 1967 and in the ensuing misspent 43 years I have accumulated a range of experience initially in general aviation and in latter years in major overseas airlines. Immediately prior to joining VB I flew the B767 in Japan and before that I spent 16 years overseas, based in the UK. Over the years I have operated a range of aircraft types including the Fokker F27, BAe146, B737, A320/321, B757 and B767, the latter on long haul operations.

During that time I was fortunate in having

opportunities in various management and training roles. I was actively involved with the British Air Line Pilots Association, including several years as Chairman of a Company Council.

When not captive behind the flight deck door of a Boeing 737 or attending a seemingly endless cycle of meetings, I run a farm upon which I breed Angus cattle. Prior to VIPA I did have a life but still manage to do some surfing and windsurfing and an occasional game of squash.

I am committed to our craft as airline pilots and am determined, before I retire and with your help, to see it re-established as a sound and respected profession.

Continued over on page 3.

Meet the Committee of Management

VIPA NEWS OCTOBER/NOVEMBER 2010 3

Karl DavisI’m Karl Davis. I’m a Captain on the B737 with Virgin Blue, having been with the company now for 8 ½ years. I’m also the Vice President of VIPA. I started flying before I could drive – continuing my

flight training through the 5 years of University earning Accounting and Information Technology degrees. Early flying hours were gained in various light aircraft commuting to Sydney for business consulting work with Ernst & Young Consulting. Later I was flying a De Havilland Dove doing night freight, and a jaunt with a couple of Chieftain operators.Outside of work and VIPA, I try to spend time with my 2 boys, cycle whenever I can, and snowboard during the winter.

Andrew HuntI’m Andrew Hunt. I’m a 737 First Officer based in Melbourne. I am the Secretary of VIPA.My aviation experience includes GA charter flying,

mine transfers, night freight, Check and Training, and Flight Ops Management.Outside of VIPA I love camping, trail bike riding and cars.

Michel DurandMichel Durand is my name and I am the Treasurer with VIPA. I am currently a Captain on the B737, based in Sydney.I’ve been with Virgin Blue for 7 years now. Prior to that I have flown with Horizon Airlines (Sydney),

Australasian Jet (Melbourne), Wimray (Darwin), and as an Instructor at Civil Flying School out of Moorabbin.I spent some time with the Australian Army in the Infantry and I completed a Science degree at University.Outside of work and VIPA I like motorbikes – adventure riding and trail bike riding.

Craig MartinI’m Craig Martin and I am a Check and Training Captain on the B777, based in Sydney. I am proud to be a member of the VIPA V Australia Subcommittee, and member of the Flight Safety,

Technical and Regulatory Compliance Subcommittee.I have worked in aviation since 1989, with Qantas 1989 – 2000, with Emirates 2000 – 2006 and then with Qantas Management 2006 – 2008 using my management background in flight safety and investigation.Outside of VIPA? I love cycling.

Guy BatorHi. Guy Bator, I’m a Captain on the B737 fleet based out of Melbourne.I’m part of the VIPA Committee of management.I’ve been with Virgin Blue for 7 ½ years, having now

notched up 17 years of commercial flying.My days off are filled with renovating, commuting to Brisbane, and building an RV-7 in my garage.

Tony DoddMy name is Tony Dodd. I’m a Check Captain on the B777 with V Australia. My position within VIPA is Team Leader for the V Australia Subcommittee.

I started flying in 1980, gaining my commercial licence in 1983. In 1986 I joined the RAAF, spending 12 years flying HS 748, C130E

Hercules and B707 strategic transport, air to air refuelling and VIP transport. From 1998 I worked with Emirates on the B777 for 10 years. Leaving as a Type Rating Instructor, I joined V Australia as a B777 Check Captain.Before becoming a professional pilot, I was a motor mechanic.Like all VIPA CoM members, I do not have a life outside of work anymore. If I did, I would spend it riding and restoring motorbikes, fishing, camping and spending time with my family. Right now I am trying to owner build our own home in Torquay in my spare time.

Chris BradburyMy name is Chris Bradbury and I’m a Captain on the B737, based in Sydney. I feel VIPA is the new way forward in upholding the dignity that our profession deserves and as a result

I present myself as a member of the Committee of management for VIPA with the mandate to help and promote the needs of my fellow pilots wherever I can.I began my flying career in 1989, progressing through to a Captain on a regional jet with Ansett. Having been through the collapse of Ansett, I fought back to secure a job with Virgin blue 2 years later.I believe pilots are among the greatest assets that an airline can have, and think that, collectively, we should believe in ourselves more, and assert our position in the aviation industry.

Tim ArchibaldI’m Captain Tim “Arch” Archibald, B737, a VIPA Management Committee member. In recent times I have largely been involved with Industrial Relations on behalf of VIPA members including dispute resolution.

Prior to joining Virgin Blue in 2002 I was a First Officer with QANTAS, Ansett and Skywest. My General Aviation experience includes Coast Watch, Aerial Survey and Instructing at Archerfield. I am a father of two young girls, an avid dirt bike rider, surfer and 4WDer. When not at work I’m happy to be found at Boonah or Moreton Island.I became involved with VIPA in its infancy and have enjoyed watching the growth of the organisation and its ability to deliver outcomes for its members.

Simon O’HaraMy name is Simon O’Hara and I’m the VIPA Executive Director.I have worked as a solicitor for over 8 years, mostly with unions. During that time, I have worked for a Royal Commission, employers and an Industrial

Relations Commission. My first job was as a delegate for the SDA at age 14.I reside in the inner city of Sydney, enjoying the odd red wine at my local. In my time working for VIPA, I have been impressed by the focus on improving the terms and conditions of employment for the membership and the selfless work of those trying to make a difference for Virgin Group pilots.

Rachel DavisI’m Rachel Davis and I am the Executive Assistant with VIPA. I guess that means I get to do lots of the administration work, member queries, manage the membership database, and organise the overworked but dedicated group of pilots called

the Committee.Prior to joining VIPA, I worked as a business consultant in PeopleSoft software and various other business consulting projects. I hold an Economics degree and an MBA.I have 2 young boys who keep me very busy, and I love nothing more than spending the afternoon in our garden with them.

Meet the Committee of Management

VIPA NEWS OCTOBER/NOVEMBER 20104 VIPA NEWS

Affiliation with the ACTUVIPA, freshly minted as an industrial association under the Fair Work Act, has now also recorded another achievement by affiliating with the Australian Council of Trade Unions (ACTU). Our affiliation was supported by other unions such as the Flight Attendants’ Association of Australia, the peak cabin crew union, and the other major pilot union, AIPA. VIPA now belongs to the industrial peak organisation that represents unions across Australia. Formed in 1927, the ACTU has been the powerhouse for many an industrial agenda since, and has at times intervened to support its member unions though litigation, bargaining and safety disputes. Member Connect, the ACTU members benefits website at memberconnect.com.au, provides a wide range of products including financial services through the unions’ bank, Members Equity, and also services that are significantly cheaper such as purchasing a motor vehicle and renting motor vehicles to name just a few. Check out Members Equity (mebank.com.au) as a low cost alternative to the major banks and you may find yourself using these new services by virtue of your membership of VIPA.The ACTU has its own office bearers and paid employees to deal with affiliate union matters ranging from bargaining, safety queries to lobbying government over legislation and providing member benefits for affiliates.The ACTU is a democratic organisation that holds a congress, nicknamed the Parliament of Unions, every couple of years to debate ideas, legislation and the ACTU’s coming agenda. I attended the last Congress, in 2009, as the representative for a professional organisation and had the opportunity to see Julia Gillard and Kevin Rudd speak to affiliates about the government’s priorities.Over many years, the ACTU and its affiliates, made massive gains for workers in Australia that many of us now take for granted, such as:l The right of workers to form a union which

elects its own independent representatives; l Award to ensure that employers observe

minimum wages and working conditions;

Member Benefits GrowingThere has been considerable work over recent months put into creating a member benefits programme for our members. This will be an ongoing process, but good results are beginning to come through, and we are confident that as the scheme gathers momentum, there are a lot more great deals on the way. We have now put in place a corporate deal with Mercedes Benz that extends to all VIPA members across the country. So if you are interested in this quality machine, it would be worth it to have a look at the corporate programme that has been made available to us. Please see the VIPA website for more details.For those of us that enjoy our days off

outdoors, taking in all that serenity, we now have a deal with Rays outdoors. At the point of sale, you will be entitled to discounts of 16% off industrial clothing (so you can get your own personalised Hi Vis vest to really stand out!) and 6.5% off all other items sold at Rays Outdoors. Bolle Eyewear, the distributor for Serengetti, is also offering discounts to our members of up to 40%. More deals ranging from hire cars, wine, hotel accommodation, gym memberships and mobile phones are being negotiated, so keep an eye on our website as we activate new deals. We are focused on practical ideas for goods and services and not just window dressing

this idea. The method of redeeming the offers is also a prime consideration – we are after a simple and uncomplicated process to allow you to take advantage of the benefits with a minimum of fuss.Although in its initial stages, the overwhelming response to our enquiries shows that over time we will have a great member benefits programme for VIPA pilots and spouses. Finally, if you have any ideas that can keep us in touch with the interests of our group, please contact me at [email protected].

Captain Chris BradburyVIPA Committee of Management

l Equal pay; l Long service leave; l Pay loading for evenings, nights and

weekends; l Paid public holidays including the recent

Labour day; l Periodic wage increases; l Maternity/adoption/parental leave; l Annual leave and leave loading; l Protective clothing and equipment provided

by the employer; l Occupational health and safety laws; l Compensation for injury; l Occupational superannuation; l The right to be given notice and to be

consulted about changes at work (eg new technology, planned retrenchments, new working arrangements);

l Personal carer’s leave.

The ACTU is heading in an exciting new direction with the new President, Ged Kearney speaking to the National Press Club on 6 October 2010 to set out a new industrial

agenda for unions. One aspect that resonates with her speech to the Press Club is where she asserted that unions need “to embrace ideas and see them spread throughout the workplaces of Australia”. “More than sheer numbers, we need engagement with our member base”. Ged Kearney goes onto say that one thing she has learned is that members don’t just accept slogans and rhetoric. They want to understand the big picture - an idea that VIPA endorses for its membership. Ged is keen to meet with VIPA and also its membership as part of the new initiative to survey ACTU affiliates and their members on their opinions. Your active participation in this survey will allow the ACTU and VIPA to gain an insight into issues such as remuneration, fatigue, and to what extent your role as a pilot allows you to actively pursue a family life that is meaningful for both you, your partner your children. It will also allow members to turn their thoughts to the role of government in Australia. The results of this survey will be food for thought for any federal government.

Simon O’Hara Executive Director


The heart of the matterDr Chris King explains the importance of an ECG - not just for your job, but for you life.An electrocardiogram (ECG) is undertaken at variable intervals at your renewal or revalidation medical examinations. Ten electrodes are placed on your body and used to record the ECG. Two left and right on your upper body or left and right arms; two on your lower body or left and right leg; and six electrodes across the front of your chest. Measuring the electrical potentials between different combinations of these electrodes allows the recorder to map the electrical activity generated by your heart in both horizontal and vertical planes.

The results are then represented graphically to produce the ECG tracing. Examination of this trace can indicate the condition and functino of the heart muscle, the nature of the heart’s rhythm and the health of its conduction system.

When studying the ECG, we look at the rhythm and rate of the heart to see if it is regular. We also check for extra beats (ectopic beats), and look at the conduction system of the heart to make sure that it is co-ordinated and that the atria and ventricles are contracting in the most efficient way. We can also get a picture of the health of the heart muscle.

The ECG is part of the cardiovascular risk assessment undertaken at your medical, together with family history, height, weight, urine, pulse, blood pressure, lipid estimation at age 40 and assessment of smoking and alcohol.

Heart disease is a potential cause of sudden incapacitation on the flight deck. JAA rules state that there must be a less than one per cent per year chance of sudden incapacitation on the climb and descent. Therefore, cardivascular risk needs to be assessed at every medical.

Abnormal may mean normalThere are certain ECG machines approved by the CAA for use at your medicals. All have inbuilt computers with the ability to procude a brief report on the condition of the ECG. These are set to be overly sensitive, so that abnormalities are not overlooked.Because of this, a number of ECGs are coded as abnormal (see below), when in fact they will be normal. All class 1 ECGs are sent off to the CAA for assessment. Class 2 ECGs are read by a local cardiologist if abnormal. If the class 1 ECG is normal, it is coded 55 and not looked at by a cardiologist. If there any abnormality, it is coded 56 and seen by a cardiologist, but the medical is not usually deferred. Clearly, if there is something of significance, it would be discussed with the CAA at the time of the medical. Only in rare situations is the medical deferred. In this case the ECG would be faxed over to the CAA for an urgent assessment.ECGs coded as 56 are not uncommon. Sometimes, the ECG ‘abnormality’ can be

reversed by taking a deep inspiration or expiration while the ECG is undertaken, and a number of you might have been aksed to do this. The ECG can be affected by the shape of your chest in that tall, slim individuals can have a different ECG to short, squat individuals. Pilots who are very athletic and who undertale extreme exercise such as triathlons of biathlons sometimes have unusual ECGs.It is important to remember that the ECG machine has no clinical flexibility in it interpretations. There is a wide variation of normal ECGs which the ECG machine is unable to cope with, hence the 55 or 56 coding, and subsequent interpretation by a CAA cardiologist.If the CAA cardiologist is unhappy with your ECG, you may receive a letter from them asking you to undergo further investigation by way of an exercise ECG, echocardiogram, 24-hour monitoring or cardiology opinion. Do not be overly alarmed as the majority of these will be normal.As well as the flying aspect, cardiac screening can pick up and enable cardiac problems to be treated at a much earlier stage than ‘Joe Public’. As I say to pilots on many occasions, “your health comes first and flying is a very close second”. I am not sure how many of you agree with this sentiment!It is quite common for an ECG ‘Abnormality’ to persist from medical to medical. One of the reasons for sticking with one AME/practice is that previous ECGs can be compared and are often identical over the previous years. if the ‘adnormality’ has been previosuly investigated, the AME can usually reassure you at the time of the medical and issue the certificate in the normal way.

Reprinted from the BALPA journal, ‘The Log’

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ECG machines are set to be overly sensitive, so that abnormalities are not overlooked. Because of this, ‘normal’ ECGs may often be coded as ‘abnormal’.“ “


V Australia EBA UpdateThe September round of EBA negotiations has been completed with a 3 day intensive meeting in Brisbane last week. Attending for VIPA was Craig Martin, Andrew Grierson, Tony Dodd and Simon O’Hara. Nick Le Mare, Beau Scott and Paul Doherty represented the company again. It was pleasing from our perspective to see some consistency from the company with regard to negotiators. The AFAP was also in attendance.

The People department continues to refuse to enable the President, Capt Lyons, to attend the EBA meetings. Claims that he should not be negotiating for a V Australia EBA while flying for Virgin Blue appears contrary to the Company’s desire to develop

group-wide policies where possible.

The previous meeting appeared to be a turning point in negotiations, with the Company demonstrating greater interest in achieving an outcome than had previously. We are pleased to say that the improvement in the Company’s position has continued and there is now a stated objective from the Company to have the negotiations concluded by Christmas. While this is an optimistic timeframe, it is certainly welcomed by VIPA, and we will be doing what we can to facilitate this.

During this meeting, many of the less contentious clauses, such as flexibility, anti-

discrimination etc were discussed and mostly agreed upon, with the Company committing to return to the table next meeting with some draft clauses.

Of the more contentious issues, allowances, rostering and promotion were discussed. The Company has stated that it intends to bring some consistency across the group to all these issues and accordingly ATO rates for allowances were discussed, as was method of payment. Whilst no agreement was reached, the Company will again come back to us next meeting with their proposal.

A robust and detailed discussion with regard to promotion commenced. VIPA continued its stated position that a merit-based system is not practical, nor is it transparent or fair. VIPA articulated its vision for a promotion system which is underpinned by Date of Joining, but has a performance based component to it, i.e. when positions are advertised, applications will be assessed on qualifications, Date of Joining and operational performance (Sim and Line checks). When a candidate meets minimum experience requirements and his/her operational performance has been adequate, then he/she will be offered a position based on Date of Joining.

It must be stressed that we have not yet come to an agreement on promotion policy, but we can say that at this point there appears to be no significant areas of difference between the parties.

Dave Coulston attended the last day to provide expert opinion on rostering. As we are all aware, rostering is a complex and subjective area; there is no ‘one size fits all’ solution to good rostering. Accordingly, VIPA’s position on rostering is underpinned by the premise that the company should implement a computerised preferential bid system. This type of system is already in place at VB. The company did not raise any objections to the computerised bid system in principle, but the ever-present issue of cost is a factor, with implementation expected to be around $1m. Nevertheless, the company was very positive toward the proposal as there was a 6-8% efficiency improvement when implemented at VB. We also discussed an overtime threshold/productivity payment system and payments for working days off. None of these issues appeared to raise major concerns from the company, but again no precise figures were discussed nor were agreements reached.

The unions requested to open talks on the remuneration package, but the Company stated they were not yet in a position to do so. The unions made the point that much of what had been discussed was dependent on the remuneration package being acceptable; therefore we could not proceed much further until we had a clearer picture of what that would be.

The Company committed to presenting their draft of the remuneration package at the next meeting.

The next meeting will be in Brisbane from 27th to 29th October.

PHOTO by MEHDI NAzARINIA

Calling all V australia Pilots…

For a confidential discussion on joining VIPA or the progress of the

V Australia negotiations, call Simon O’Hara on 0400 188 815.

It is time to join a union to get the best information on the current

bargaining for the first V Australia Enterprise Bargaining Agreement.

VIPA has a bargaining team comprising three V Australia Check Captains:

CAPTAIN ToNy DoDD

CAPTAIN CRAIG MARTIN

CAPTAIN ANDy (“GUN”) GRIERSoN


ARE you well? You may think theanswer to that question is easy. However, much of what we think will improve our wellbeing is misguided or just plain wrong, say social researchers Tom Rath and Jim Harter, authors of Wellbeing: The Five Essential Elements.

They say contrary to what many people beleive, wellbeing isn’t about being happy, wealthy or successful. Nor is it just about physical health and wellness.

In a global study of more than 50 countries covering 98 per cent ot the world’s population, Rath and Harter discovered five universal elements of wellbeing, beyond the much hyped concept of work-life balance.

First, people need to have career wellbeing, which means they need to like what they do every day. The second element is social wellbeing; that is, having strong, close relationships. The third element is financial wellbeing, where people need to manage their economic life to reduce stress and increase security. The fourth element is physical wellbeing, to have enough energy to complete the day’s tasks. The fifth element is community wellbeing, where people are engaged in the area where they live.

The researchers found 66 per cent of people do well in at least one of these areas. However, only 7 per cent are thriving in all five.

With this comes a big cost to business, says Allan Watkinson, engagement manager at Gallup Consulting he says research shows there is a $40 billion cost from lost productivity when people are not engaged or are actively disengaged at work.

Rath and Harter claim each element of wellbeing is interconnected.

For example, in one study the researchers tracked employess for two years to examine the relationship between charges in engagement at work and changes in cholesterol and triglyceride levels As an employees’s level of engagement rose their cholesterol and triglyceride levels fell.

The researchers also cite a study of 3000 Swedish workers that showed those who deemed their managers to be least competent had a 24 per cent risk of serious heart problem. For those who had worked for that manager for more thank four years that risk was 39 per cent higher.

A good manager is critical for engagement and retention, Watkinson says. “Employees will join an organisation and leave a manager,” he says.

Rath and Harter found if a manager ignores an employee, there is a 40 per cent chance the employee will be actively disengaged or filled with hostility about their job. But for someone whose manager is paying them attention, even if that attention is negative,

the chances of that employee being disengaged goes down to 22 per cent.

Rather than discouraging chitchat around the water cooler, organisations should encourage interaction at work and allow employees to spread their social wings. The researchers cite a Harvard study that found each happy friend a person had within their network increased the odds of that person being happy by 9 per cent. The researchers also found employees who spend up to six hours of each day socialising with friends are happier and more engaged in their work. They also found 30 per cent of employees have a best friend at work, but those who do are seven times likelier to be engaged in their jobs.

So what can companies do to promote wellbeing?

Focus on all the elements, suggests Watkinson, not just three or four of them.

Typically organisations run programs addressing career, community and physical wellbeing by may neglect social and financial elements.

Watkinson recommends organisations embrace social networks.

“Far from banning websites such as Facebook and Twitter during the working day, we encourage employers to embrace technology to encourage their staff to socialise and delivery benefits to the

businesses in which they work”, he says.

With businesses focusing on the bottom line, Watkinson says anyone developing a wellbeing program needs first to think about how to measure staff wellbeing across all five elements, then the effect of and return on investment of any program they design.

He also suggest companies make it easy for themselves and individuals by setting up “positive defaults”. Individuals are unlikely to participate if they need to do too much organising or they set themselves goals that are too stringent.

For a company, a positive default could be an “opt out” of a community day or social club membership rather than “opt in”, which may take energy to organise. For an individual a positive default could be money automatically deducted from their pay into a savings plan.

While individual responsibility is important for any wellbeing program, for a program to have sustained success it needs to come from the top down, Watkinson says. There is a danger such programs are seen as human resources initiative and are not truly embraced. With chief executive support, a program is likely to have a broader support and become embedded in the culture. If the boss takes part in a community day, for example, everyone knows it is important.

7

Engaged Staff do their Best

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“


Income Protection InsuranceA typical Australian with a 40 year working life between the ages of 25 and 65 will earn more than $2.2 million over this time. However, as we know, sometimes life can be unpredictable leaving us in situations that we did not foresee. The ability to work and make money is not something that should be taken for granted.

Jeremy’s story:As a commercial pilot, Jeremy was the sole financial supporter of his wife and two young children. So when he fell from a ladder doing some work around his home, and suffered a compound fracture in his right forearm, Jeremy and his wife were understandably worried.The fracture was severe enough to require an operation, and was further complicated by acute right forearm compartment syndrome. Further complications following the operation meant Jeremy was left with severe nerve damage and muscle weakness, and was unable to return to work.

Jeremy’s Loss of Licence insurance covered him for 85% of his income for the first 3 years. Following that, where did Jeremy’s income come from?Thanks to forward planning, Jeremy and his financial advisor had worked out a personal insurance protection plan. The plan included Income Protection, together with Loss of Licence cover through VIPA. After the initial 3 years, Jeremy’s Income Protection continued to replace 75% of his salary up to the age of 60. This provided Jeremy and his family with financial security, enabling them to maintain the lifestyle they were used to, whilst also allowing him to send his children to private school, as he and his wife had always planned.For further information on Income Protection and how Income Protection interacts with Loss of Licence insurance, please contact Income Solutions on (03) 5229 0577 or [email protected]

Income Protectionl Benefit payable through to age 60l Pays 75% of income (to a maximum

of $30,000 per mth)l Tax deductible premiumsl Insurance is transferrable and

continues regardless of employer, occupation or salary (agreed value cover)

l Guaranteed renewable policy – the policy cannot be cancelled by the insurance company provided the client pays premiums

l Flexible waiting periods to reduce premiums.

1. How much can I claim back from the company for my Loss of Licence Insurance?From 1st July 2010, the amount you can claim back increased by 2% to $2,589.

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 doesn’t the policy focus on a lump sum payment upfront?We could have put in place a policy with a high upfront payment that scaled down as you got older. However, we do not believe that this should be the focus of a Loss of Licence policy now. You are more likely to temporarily lose your ability to fly. 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 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 three years, with a further two 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 three years, with a further two 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.

Loss of licence FAQ


An initial survey was put to members last month to ascertain the high level areas of importance to pilots and to get a starting point for the upcoming Virgin Blue EBA negotiations. The following results were received.

Of the respondents, 73% operated B737 fleet, and 27% operated EJet aircraft.

63% were Captains, and 37% were First Officers

47% of respondents were based in MEL, 30% in BNE, 19% in SYD, and 4% in PER.

Respondents were asked to rate their satisfaction with certain areas of their work life.

Across both fleets, the areas of dissatisfied or very dissatisfied were: Flight Crew Paxing (87%); Fatigue Management (73%); Redundancy Management (64%); Remuneration (53%).

Specifically Ejet pilots were very dissatisfied or dissatisfied with: Flight Crew Paxing (87%); Remuneration (83%).

Whereas B737 pilots were very dissatisfied or dissatisfied with: Flight Crew Paxing (87%); Fatigue Management (80%).

13 different focus points for the next EBA were ranked. Overall, the top 5 amongst all respondents were:

1. Remuneration 84%; 2. Fatigue Management 69%; 3. Rostering 66%; 4. Work Rules 62%; 5. Lifestyle Quality 56%

Amongst the Ejet operators, the top 5 focus points were:

1. Remuneration 96%2. Rostering 62%

3. Fatigue Management 55%4. Flight Crew Paxing 47%5. Work Rules 47%

Amongst the B737 operators, the top 5 focus points were:

1. Remuneration 80%2. Fatigue Management 75%3. Work Rules 68%4. Rostering 68%5. Lifestyle Quality 58%

Thank you to all those members who took the time to complete the survey. The results from this survey are now being used to develop detailed surveys on each of the key topics. We are currently working on a Remuneration Survey and a Rostering and Work Rules Survey. Your responses to these surveys will shape the course of the negotiations to come.

At the start of October, VIPA began discussions with the company regarding the A330 terms and conditions.

VIPA raised the following issues with the company:

1. That VIPA conducted a survey of the membership to assess what members thought would be acceptable terms and conditions of employment particularly with regard to the remuneration package.

2. The membership indicated that there should be two categories of salary – widebody and narrowbody. These two categories would have their

respective remuneration determined on the type of plane they pilot.

3. The A330 remuneration should be 20% above the B737 remuneration.

4. Ejet pilots should be brought up to the remuneration of a B737 pilot.

5. VIPA’s preference was for a collective agreement to be made for the A330 pilots.

6. Further details were requested about the remuneration package. As we go to print, the company had not provided details of their proposals for remuneration.

7. VIPA detailed in a general fashion some of the comments made by the membership particularly the cynicism of the remuneration package that may be offered and that many members wished to see parity with the Qantas conditions for the A330, given that Virgin Blue is positioning itself as a full service carrier.

8. The company mentioned that they have a very tight timeframe to work to and that is something that VIPA understands.

We will keep you posted…

VIPA Initial EBA Survey Results

A330 on its Way

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Our Executive Director, Simon O’Hara, wrote to Senator Nick Xenophon regarding an Aviation Inquiry. Below is an extract from that letter.

RE: VIPA and an Aviation InquiryVIPA attended the 2010 AIPA dinner and was impressed by your speech on the aviation sector in Australia, particularly with reference to safety.

As professionals in the aviation industry, we would like to add to the calls for an aviation industry inquiry and we would seek to meet with you at your convenience for the purposes of not only introducing ourselves to you, but also to provide you with some information from our membership about work practices and the so called evolution of the Australian aviation sector.

We have provided a brief summary of our

organisation and hope that this assists you in getting an understanding of who we represent and some of our core issues.

In a nutshell VIPA is the professional association and registered employee industrial organisation, pursuant to the Fair Work Act, for Virgin Blue Group pilots. VIPA is affiliated with the ACTU and is experiencing rapid growth in its membership. VIPA’s core business is the industrial and professional representation of Virgin Blue Group pilots and the aviation industry in Australia.

VIPA’s members are employed in various enterprises within the Virgin Blue group such as Virgin Blue, V Australia and Pacific Blue.

VIPA participates in the development of policy in aviation safety and professional

standards.

VIPA has developed a range of key issues for your consideration, including: safety; industrial relations advice and legal assistance for our members; providing professional services for our members including loss of licence insurance, life insurance and funeral expenses.

As we go to press, Senator Xenophon’s office has contacted Simon O’Hara and would like to meet with our representatives to discuss the aviation industry and our membership.

Captain John Lyons said that he is keen for VIPA to engage with government, the regulator and also the aviation industry on behalf of our membership.

The Senate Inquiry - an opportunity for the VIPA membership to speak

VIPA’S First AGM a SuccessContinued from front page.An update on the current industrial issues was eloquently given by the Vice President, Karl Davis. Numerous matters that VIPA has raised with Virgin Blue have achieved favourable outcomes.The Secretary Andrew Hunt introduced VIPA’s Accountant, Rachael Hankinson from Penny Lane Accountants, and Rachel Davis, the Executive Assistant, and mention was made of their positive contributions to the smooth running of VIPA.The Treasurer Michel Durand presented the 2010 Annual Financial Reports to the group, their acceptance moved and seconded.Simon O’Hara gave an articulate speech where he spoke of the matters he has been working on, including the V Australia EBA negotiations, the

issue of offshoring to foreign pilots, and successfully resolving several members’ issues.General discussion followed, with the issue of using foreign pilots to fly Australian planes raised and discussed at length. Several important and interesting points were made about the situation with NZ pilots. Also the importance of the V Australia EBA negotiations to the upcoming VB EBA negotiations was related. The attending members contributed their views on current issues, which VIPA considers valuable for ongoing discussions with VB. Thank you to the members who attended, your opinions are well regarded, and form a positive direction for VIPA to pursue going forward.



Group Opportunities take ShapeAt the end of September, VIPA wrote to the company regarding our thoughts on an appropriate Group Opportunities policy to deal with promotion and transfer within the Virgin Blue Group. Below is a copy of that letter.VIPA has been working steadily for the last few months to formulate our thoughts for contribution to a Virgin Blue Group promotion and transfer policy.We submit these thoughts as a discussion paper to begin talking about an appropriate policy for Virgin Blue Group pilot opportunities.We understand and appreciate the company’s desire to put in place a system that satisfies pilots’ aspirations, career planning, and job satisfaction whilst providing a stable workforce and minimising unnecessary training costs.With that in mind, we evaluated a number of different systems for managing group opportunities including merit based policies. In considering these systems, we put in place four main criteria for a policy to meet, before it could be considered appropriate.Firstly, the system must not be overly complex. A complex system is difficult to understand and administer, requires excessive initial and ongoing training, and is more likely to reduce pilot job satisfaction and engagement.Secondly, the pilot workforce is geographically dispersed and the average pilot does not spend a great deal of time with his or her direct manager.Therefore the system could not rely on personal or subjective evaluation to determine a flight crew’s suitability for a position, as this would be neither practical nor fair.Thirdly, a pilot’s tasks are largely defined by legislation, as laid out in the Civil Aviation Act, Civil Aviation Regulations, and Civil Aviation

Orders. Any system must take into account the mandatory requirements that define the role of a Virgin Blue Group pilot.Fourthly, when evaluating a system we must be cognisant of the risk inherent in the balance between the commercial and safety aspects of operation in placing targets on a pilot whose role is mostly defined by the legislative requirements and safety risk management. In the past, unintended consequences have resulted from performance based targets – something we must avoid.Applying these criteria, an analysis of merit based systems does not reach the required benchmark. They are overly complex, often subjective, and inaccurate due to the little time pilots spend with their managers, and tend to focus on criticism rather than praise.Dr Samuel Culbert, Professor of Management at the UCLA School of

Management, does not believe they are effective and he writes relevantly in:“They send employees the message that the boss’s opinion of their performance is the key determinant of pay, assignment, and career progress.And while that opinion pretends to be objective, it is no such thing. Think about it: If performance reviews are so objective, why is it that so many people get totally different ratings simply by switching bosses? … Forget, for a minute, the damage it does on a personal level -- the way it makes work lives miserable, the way it leaves employees feeling depressed and anxious, the way having to show so much tolerance at work leaves them with too little tolerance at home. Just think about what it does on a corporate level, the enormous amount of time and energy it wastes …”After reviewing a number of options, VIPA proposes a system based on flight crews’ date of joining the group. A system such as this meets the requirements of being simple, objective, transparent and fair - whilst recognising a pilot’s development and experience within the group. Minimum experience requirements will ensure that a flight crew member meets a certain criteria before being considered for a position, and he or she would not be concerned about being penalised for not exceeding the legislative requirements of their position.VIPA submits this as a starting point for discussion to collaborate on an effective and efficient policy that will meet the company’s requirement and the flight crews’ expectations. As such, we seek a meeting with you to discuss this as a matter of priority.Kind Regards,Karl Davis VIPA Vice President


PHOTO by SARMAD AL-KHozALE

...an analysis of merit based systems does not reach the required benchmark“ “


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: .......................................................................................................................................................

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

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

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

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

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

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

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

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

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

Invoicing Option: p Annual p Quarterly

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 Act2009

• I agree to pay annual subscription fees in accordance with the Rules and that the annual subscription fee of VIPA is 0.8% (plus 10% 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 admission fee.

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

Send this completed membership form to the Secretary, VIPA at [email protected] or by post to: The Secretary, VIPA, Po Box 368, TULLAMARINE BUSINESS PARK, TULLAMARINE, VIC 3043

Payment options

The following options are currently available: Direct Bank Transfer, Credit Card, Cheque, BPay and PostBillpay.

office use only

Date of receiving application:

Date of Executive Committee Meeting accepting the application:

Member Referral Discount

VIPA Membership Application Form For a free copy of the rules of VIPA, email the Secretary at: [email protected]

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

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Documents

Oct-Nov 2010 VIPA News