BONZA LIQUIDATION BRINGS CERTAINTY FOR WORKERS, ISOLATION TO REGIONAL AUSTRALIA: TWU

Bonza creditors have today voted to liquidate the company, providing workers access to the government’s Fair Entitlements Guarantee scheme. However, the TWU warns regional Australia won’t reconnect with the rest of the country without a Safe and Secure Skies Commission.

Bonza workers were terminated on 11 June but the government’s Fair Entitlements Guarantee scheme for workers to claim owed entitlements could not be enlivened until the company entered liquidation, which has now occurred.

Workers are collectively owed an estimated $10.8 million for entitlements such as wages, redundancy, and pay in lieu of notice.

Bonza staff have not been paid since March, including for work completed in April, while administrators attempted but were unable to secure a sale.

Last month, the TWU, ASU and the whole union movement passed a motion on the need for a Safe and Secure Skies Commission to provide regulatory oversight, stability and binding standards for aviation.

TWU National Secretary Michael Kaine said this is the bittersweet news Bonza workers have been waiting for.

“The finality of Bonza’s collapse is a sad event for Australia’s aviation industry, but brings the certainty workers needed to access the Fair Entitlements Guarantee scheme for their owed entitlements, including wages for work completed in April.

“With cost-of-living still bearing down, more than 300 families suffered sudden loss of income and months of turmoil about their futures. Rebuilding a sustainable aviation industry has never been more critical for workers, passengers and the community.

“The worst of this news is the hopelessness of reconnecting regional Australia without intervention from a regulatory body. Prior to administration, Bonza provided a lower-cost option for travellers and 35 routes connecting regional locations, 30 of which were unserved by any other airline.

“While aggressive market competition dominates the most lucrative routes, regional communities are left high and dry.

“Aviation is lacking a voice for workers, passengers and the Australian community including those in the regions. We need a Safe and Secure Skies Commission to set binding standards and ensure aviation meets the needs and values of the nation.”