Airwork Update
You will recall that on Friday 3 November 2023 Airwork announced that “TGE will not be renewing the contract with Airwork post the 31 May 2024”.
Since that time, we have:
- Met with the Company on Monday 6 November 2023;
- Held a members’ meeting via Zoom on Friday 10 November to obtain your feedback and questions; and
- Met again with the Company on Friday 17 November 2023.
We are further advised that the Company is intending on providing an update to all staff this Friday (1 December) and we have arranged for a further meeting of the Company and AFAP representatives on Friday 8 December 2023.
You would now also be aware the TGE contract has been awarded to Texel Air with a commencement date of 1 June 2024.
Airwork’s intention is to, as much as possible, continue to operate as normal and fulfil its obligations under the TGE contract until 31 May 2024. Airwork has also reached out to key customers to explore new opportunities and cement current arrangements such as the flying it currently performs for Qantas.
At this stage Airwork is not offering or expecting to offer any redundancies.
Based on pilot feedback, your representatives sought assurances that Airwork could and would meet all employee entitlements. This included whether the Company would consider paying out leave balances upon request. Drew Richardson, on behalf of Airwork, advised that Airwork is solvent, but he would refer the question regarding the paying out of leave to Finance. He has since advised that Airwork will not be fully cashing out leave to continuing employees as this would be very unusual. Regarding any other assurances which can be provided, this will be covered at Friday’s staff meeting.
Since the meeting on 17 November 2023, and again based on member feedback, we have requested that the AFAP:
- Write to Texel Air requesting a meeting so that we can understand how they intend to fulfill the TGE contract when it commences on 1 June 2024 and the industrial arrangements it intends to have in place; and
- Provide guidance on the Government’s Fair Entitlements Guarantee (FEG) so that all members understand exactly what entitlements are Government guaranteed should Airwork be unable to meet its obligations. This information is provided below.
In summary, in the worst-case scenario of Airwork going into liquidation without sufficient funds to meet employee entitlements, the FEG will cover:
- your unpaid wages—up to 13 weeks
- your unpaid annual leave and long service leave
- your payment in lieu of notice—up to five weeks
- your redundancy pay.
FEG entitlements are however capped at a maximum weekly wage rate. The current weekly wage cap is $2,673 (between 1 July 2023 and 30 June 2024). This is the equivalent of an annual salary of $138,996.
The remaining unpaid entitlement for the portion of wages over the maximum weekly wage cap must be claimed from the insolvent estate (i.e. the Administrator or Liquidator).
Further information on the FEG is available at https://www.dewr.gov.au/fair-entitlements-guarantee
Please note that the information on the FEG is noted for information only and in response to member enquiries. We have no reason to believe that Airwork will not continue to operate and/or does not have sufficient funds to meet all entitlements and obligations. We have however all been in aviation for long enough to know that it can be an insecure employment environment and a little research cannot hurt.
As always, we remain open for contact, comments and questions:
Clayton Cowled - ClaytonCowled@hotmail.com
Paul Masters - pwmasters@hotmail.com
Mike MacNamara - mike.macnamara@hotmail.com
Seb Murray - sebastian.murray@hotmail.com
Alex Trinidad - alex.trinidad@yahoo.com.au
In addition you can contact AFAP staff member Chris Aikens on chris@afap.org.au or Simon Lutton on simon@afap.org.au. The AFAP Member Assistance Program (MAP) can also be contacted via Freecall 1300 307 912.