On Monday 19th and Tuesday 20th February the AFAP Negotiating Committee met with RFDS SE (‘the RFDS’) Bargaining Representatives in person at the RFDS Office in Surry Hills (SYD) to resume bargaining for a Section Wide EA which will bring all pilots based in Bankstown, Broken Hill, Dubbo, Launceston and Essendon together under a single enterprise agreement.
This was the first face to face bargaining meeting held between the parties and follows a 6+-month hiatus in any bargaining discussions while the RFDS focused on concluding the doctors and nurse’s agreement.
Attending on behalf of the AFAP were pilot representatives Shane Brooke (Broken Hill), Brett Reynish (Dubbo) and Jesse Hawtree (Launceston) along with AFAP Senior Industrial/Legal Officer, Deanna Cain. Attending from the RFDS was Cameron Gibbs (HOFO), Justin Marr (General Manager, Aviation), Jaime Lewis (RFDS People Business Partner) and Erica Austin.
Overall, the discussions between the parties over the day and a half of bargaining were productive and there has been significant progress made on many of the AFAP’s claims.
Below is an overview of the status of each of the AFAP’s claim following this meeting:
| Pay Related Claims: |
1. Base salary for all pilots and all classifications increased to include the value of following allowances:
a. IFR allowance
b. Turbo prop allowance
c. ATPL allowance
d. Greater of the Standby Shift-Dubbo allowance, the Mascot Market Allowance and the Remote Area Fuel-Broken Hill allowance |
The RFDS has agreed that the IFR allowance, turbo-prop allowance and the Remote Areas Fuel Broken Hill allowance (being the highest of the three base specific allowances) will be rolled into base salary for all pilots. There was also consensus to roll the annual telephone allowance ($867 per year) into the base salary.
The ATPL will continue to be paid as a separate allowance (and indexed) as this allowance is specifically linked to pilots obtaining all of their ATPL subjects. |
| 2. Annual Salary Increases - higher of CPI or 3% as at 1 January each year (continuing until a new agreement is implemented). |
The RFDS has offered 2% annual increases plus a $5000 performance payment which would sit outside of the EA (see further below). The position of the RFDS is that all increments need to be tied to a fixed % and not a variable price index such as CPI, WPI or AWOTE as it wants certainty over what increases it is signing up for.
The AFAP made it very clear that 2% would be well short of pilot’s expectations in the current inflationary environment and pilot labour market where local operators (and airlines) where finding it difficult to attract and retain experienced pilots. We also highlighted that most if not all pilot EA’s negotiated over the last 18 months included annual pay increments of not less than 3% and a fixed 2% was not something we thought we could ‘sell’ to the pilot group.
The RFDS will review its position as part of reaching an in-principle agreement on an overall ‘package’. |
| 3. Pay parity with NSW pilots for Launceston Pilots based on their years of service with the RFDS SE. |
The RFDS had previously agreed to pay parity with NSW pilots for Launceston Pilots based on their years of service with the RFDS, with the revised rates effective 1 January 2024.
This was a welcome outcome for Launceston based pilots and demonstrated a commitment by the RFDS to resolve the differences between the two EA’s and value all pilots equally based on the work they performed and not where they were located. |
| 4. RDO Payment for all pilots based on the current Mascot & Bankstown rate |
The RFDS has agreed that the Mascot/Bankstown RDO payment will apply to all pilots which is currently $918.
Alternatively, pilots can elect to receive a DIL instead of the RDO payment. |
5. The following Allowances indexed annually in line with annual salary increases above:
a. Loss of license
b. RDO payments
c. Pilot Medical |
The RFDS has agreed the loss of license allowance, RDO payments and pilot medical allowance will be indexed annually. |
| 6. Overnight and Meal allowances as per the Air Pilots Award (not a reimbursement) |
The RFDS did not agree to overnight and meal allowances as per the Air Pilots Award. However, pleasingly it has reviewed its current Travel and Accommodation Policy which provides for reimbursement upon the production of receipts and has agreed to the following meal allowances for pilots who overnight, without the requirement to provide receipts:
Breakfast $25.00
Lunch $25.00
Dinner $50.00
Whole Day $100.00
Additionally, pilots will also be entitled to $50.00 per night for each night they are required to stay away from home, bringing the total overnight and meal allowances per 24-hour period to $150 (current Award rate for the same period is $152.40).
Eligibility for each payment will be based on the time employees depart and return home:
The AFAP acknowledged that this was a vast improvement on the current travel allowance arrangements and something we would be agreeable to. However, given these allowances are not tied to the Award (and the relevant ATO determination) we are seeking they are also subject to annual indexation.
The RFDS is considering its position on annual indexation.
|
| 7. Overtime meal allowance increased in line with the relevant ATO rates. |
The RFDS proposed to ‘buy out’ the Overtime Meal Allowance for a fixed annual amount and roll this amount into the base salary rate.
There was some robust discussion on the value of buying out this allowance (i.e. how many overtime meal allowances it was buying per pilot and at what rate). The RFDS advised that based on its data over the last 12 months it was only paying the allowance (currently $17.75) on 30% of shifts.
After some toing and froing, it was agreed that the RFDS would buy out 100 x Overtime Meal Allowances at the Pilots Award rate of $24.49 which is the equivalent of $2,449 annually added to Base Salary. According to the RFDS, this represents the allowance being paid on 75% of shifts which is significantly higher than what has historically been claimed by pilots. |
| 8. Singular phone allowance and removal of internet allowance - $867 per year |
As above, the parties have agreed to roll the annual telephone allowance ($867 per year) into the base salary. |
| 9. Retention bonus – one off payment of 5% of base salary payable to pilots after 2 years of service from commencement of new EA |
The RFDS has rejected the AFAP’s claims for a Retention Bonus, however it has tabled the introduction of what it has termed a “Reliability & Safety Payment” which is an additional payment of $5000 per year based on achievement of agreed KPI measures which would sit outside of the EA.
The RFDS see this payment as complementing a pilot’s remuneration package and part of its justification for offering a 2% fixed annual increase.
There were questions and discussion around exactly what was being measured and whether the metrics were assessed on an individual or collective basis.
The RFDS explained that the intent is the establishment of the performance metrics would be co-designed with a working group comprising of flight operations representatives (nominated by the pilots), the new EGM Aviation & Operations and the HOFO and they were intended to be achievable on a collective basis and within the flight operations team’s control.
The AFAP welcomes any bonus scheme which sits outside of an EA and rewards pilots based on achieving certain performance measures, however we expressed concern that this scheme was being used to offset higher annual increments and that it would not be valued by pilots when assessing an EA package given there was no guarantee it would be paid.
There is further discussion required around this initiative and we welcome feedback from members |
| Hours of work/ Rostering Provisions |
| 10. Equal Time Roster at all bases (see Appendix A) |
The RFDS expressed significant reservations to enshrining fixed roster patterns into an EA as it wants the ability to adapt to circumstances in the aeromedical environment which were constantly evolving. Its preference is that roster patterns at each base are achieved by a process of consultation with the affected pilots and it believes is has ‘form on the board’ in this regard.
The AFAP clarified that the intent of the claim was not necessarily to enshrine an equal roster pattern but rather the protection of a maximum of 168 rostered hours (including standby) in 28 days, average over a 3-month period.
The AFAP again highlighted that this style of rostering arrangement was becoming standard in the aeromedical industry and that providing favourable lifestyle and rostering conditions was critical to both retaining existing pilots and attracting pilots in the future.
The RFDS will consider this proposal further, noting that it is not conceptually against what we are trying to achieve. However it needs to consider how this could be accommodated while still having flexibility to deliver the required services if and when it experiences resource constraints. |
| 11. Introduction of a Shift Over-Run Duty Allowance: 1/12th of RDO allowance per hour, rounded up to the nearest 0.1 of an hour. |
The AFAP clarified that the intent of the shift over-run duty allowance is recognition of disrupting a pilot’s personal time and more about reducing the instances where pilots are required to work past the end of their shift time, than the money itself. We pointed out that this a common provision in other aeromedical agreements.
The RFDS preliminary response was that any shift overrun allowance should be assessed on the totality of a pilot’s rostered shifts (i.e. factor in where pilots have been released from a rostered shift early) and not in isolation, however is still considering its position. |
| 12. A requirement for the RFDS SE to consult and reach agreement with the AFAP in relation to the introduction of any FIFO arrangements prior to the engagement of any FIFO pilots in the future. |
The RFDS has little appetite to include any consultation provisions around FIFO arrangements in the EA, however it is still investigating this claim. |
| 13. Publication of roster to be 28 days prior to commencement of roster period. Changes to rostered duty-free days with less than 28 days’ notice will trigger an RDO payment (clause 15.2 of NSW EA) |
The RFDS has agreed to the publication of rosters 28 days prior to commencement of roster period, with changes to RDO by mutual agreement. However only changes to rostered duty-free days with less than 14 days’ notice will trigger an RDO payment.
The AFAP believes that this is an acceptable outcome for pilots which will provide them with greater advance certainty their days off. |
| Miscellaneous |
| 14. Definition of post night day and clarification that it is to be treated as a duty-free day and a pilot is not required to be available for any duty. |
This RFDS is still investigating this claim. |
| 15. Extend the entitlement to take two rostered days free of duty immediately before or after or one day immediately before and one day immediately after annual leave to apply to two periods of annual leave each year that is 7 days or greater |
The RFDS has agreed to this claim. |
Status of RFDS SE Log of Claims
You may recall one of the RFDS claims was to simplify the current allowance structure in the NSW and Launceston agreement by:
- Merging the phone allowance and internet allowance into a singular phone allowance
- Rolling the over meal allowance into base salary
- Removing the Standby Shift-Dubbo Only and Mascot Market Allowance-Mascot Only allowances and including the value of Remote Area Fuel-Broken Hill Only in base salary rates for all Pilots
- Working on non-rostered day paid at Mascot & Bankstown rate for all pilots.
As per the AFAP claim status table above, this objective has been achieved by the parties agreeing to roll the IFR allowance, turbo-prop allowance, the Remote Areas Fuel Broken Hill allowance and annual telephone allowance into the base salary. There has also been consensus in relation to the Mascot & Bankstown RDO rate applying to all RFDS pilots.
The RFDS has reviewed its initial claim around no indexing of the IFR, Turbo prop and ATPL allowances, and RDO payments. As above it has been agreed in principle that annual indexation will be applied to these payments as part of the EA package.
The RFDS has also withdrawn its initial claims around leave entitlements and leave accruals to be calculated and expressed as hours and reviewing the Loss of Licence Insurance reimbursement.
Outstanding RFDS Claims
- Review of 90 days additional personal l leave
The RFDS is still pursuing its claims to remove access to an additional 90 days of personal leave at half pay from the EA.
The AFAP recognise that there would be considerable savings for the RFDS by removing this entitlement and we have reserved our position pending where we land on the total EA package. We have flagged with the RFDS that this is not something we believe pilots would be willing to do away lightly and probably not in return for 2% annual salary increases.
- Introduction of Day Worker rates for new business contracts
The RFDS is seeking to introduce into a new EA the concept of a Day Worker salary rate that could potentially apply to future new business opportunities/contracts.
The RFDS explained that a Day Worker rate would be relevant where new contract requirements sit within a Monday-Friday, 6am-8pm roster requirements and would be structured at a % of the existing salary rates, but could be no less than the minimum Award rate for the relevant aircraft classification. They also reiterated that this would not impact any existing RFDS employees and that they expect it would apply purely to new business contracts that were not specifically to related to aeromedical tasking.
Conceptually, the AFAP is not opposed to the introduction of a day work rate, nothing that this concept already exists in other aeromedical operations (RFDS Queensland and RFDS Central Section).
The RFDS has not yet confirmed what % of the existing salary structure would apply to a Day worker, however it flagged somewhere around 80%.
Again, this is something the AFAP is willing to consider as part of the overall package.
- Review of the Training & Checking payment framework
The RFDS has proposed a new pay structure of Check and Training pilots which is line with the new training and checking structure which is under development which is designed to:
- Encouraging depth, knowledge/experience retention and professional development within training and checking.
- Gaining an accountability and performance management structure.
- Increasing the value and return on Training and Checking positions.
- Increasing flexibility around resource allocation and structure.
The proposed structure was as follows:
NB: The concept is these Training Captain position allowances would be cumulative should the individual be approved for both activities (i.e. a Training Captain who conducts EPs and NTS as well as Supervised line flying would be on 10%).
NB: The Check Captain and Senior Check Captain position allowances are not cumulative.
The AFAP is still considering its position, pending feedback from the pilot group.
Draft Agreement
As we have previously mentioned the RFDS has proposed using the Air Pilots Award 2020 as a base document for the new EA with any RFDSSE specific entitlements/conditions that are more beneficial than the Award carrying over to the restructured agreement to ensure existing conditions are preserved and pilots are no worse off. The AFAP has supported this approach.
At the meeting the parties spent some time working through the initial draft agreement that had been prepared by the RFDS to ensure that the existing EA provisions had been captured (to the extent they were more beneficial than the Award) and also reflected the claims that had been agreed in principle. The draft document has now been updated based on these discussions.
Where to from here?
From here the AFAP and RFDS have undertaken to provide responses to the outstanding claims by the end of next week with a view to reaching an in-principle agreement on the overall package as soon as possible. It is likely that another face to face meeting will be scheduled prior to Easter for the purposes of closing out the negotiations and finalising a document that pilots will then be asked to vote on.
We will continue to keep you updated on any further progress and in the meantime we welcome your feedback.
If you have any queries, or would like to provide feedback, please contact any of the AFAP pilot representatives listed below, or AFAP Senior Industrial/Legal Office Deanna Cain (deanna@afap.org.au)
AFAP RFDE SE Negotiating Committee
Shane Brooke (brooksy073@bigpond.com / 0417 294 328)
Jesse Hawtree (jessehawtree@gmail.com / 0400 583 310)
Brett Reynish (brettr7@hotmail.com / 0419 973 959)