Yahoo Finance Thousands of workers stood down as lockdowns tighten
Virgin and Rex airlines have joined Qantas in standing down thousands of staff as lockdowns in NSW worsen and are extended in Victoria.
Rex said in a statement it had been forced to temporarily adjust employment numbers and stand down 500 staff because of the extended lockdowns and subsequent border closures, while Virgin will slash hours or stand down frontline workers.
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In an internal note to workers, Virgin Australia CEO Jayne Hrdlicka told staff it has been forced to make the changes, with only 7 per cent of its network able to operate and 24 per cent of flights going ahead this month.
“We believe these arrangements balance the flexibility we need as a business right now with the need for financial certainty for our team members during what will be a challenging short-term period,” Hrdlicka said.
“Regrettably, the arrangements do involve reduced hours and/or temporary stand downs for front line staff at all bases.”
Hrdlicka said staff will receive a minimum fortnightly payment for anyone affected, linked to available government support packages.
“We’ve sought to tailor our approach so frontline team members can make decisions based on their individual circumstances, and that’s the right thing to do,” she said.
Rex has also made the decision to stand down 500 frontline workers including pilots, cabin crew, engineer, airport workers, call centers, ground staff and head office staff.
Rex said flight attendants will share whatever remaining work is available.
“This arrangement for our flight attendants is a great example of a pragmatic and unified approach as we grapple with the devastating consequences of lockdowns and border closures which have ravaged the entire aviation industry,” Rex deputy chair John Sharp said.
Sharp said all eligible full-time staff stood down would receive income support from the Federal Government of $750 a week under the Retaining Domestic Airline Capability (RDAC) Assistance if they are not eligible for the Federal Government’s COVID-19 Disaster Payment.
Rex said it had consulted with unions and staff and explained why the measures were necessary to protect both the business and the long-term job security of all employees.
Rex and Virgin’s announcements follow news that 2,500 of Qantas’ staff would be stood down amid ongoing lockdowns. Qantas and Jetstar workers have been stood down for around two months in response to the ongoing lockdowns and border closures.
Extended support for airline workers
The Australian Government further extended key assistance measures to support domestic aviation at the start of August.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Barnaby Joyce said the Domestic Aviation Network Support (DANS) and Regional Airline Network Support (RANS) programs have been extended until 31 December 2021.
“Through the COVID-19 crisis, DANS and RANS have allowed more than 1.8 million passengers to continue to travel across our country, including essential workers in health care and other frontline services,” Joyce said.
The Government is also extending a 50 per cent waiver of domestic air services charges for Regular Public Transport and aeromedical flights to 31 December 2021.
“This will continue to help manage costs for airlines as they navigate the serious ongoing challenges posed by COVID-19 outbreaks, including lockdowns and border closures.”
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