TWU CALLS FOR GOVERNMENT TO TAKE A STAKE IN VIRGIN FOLLOWING FIRST CREDITORS’ MEETING

The Transport Workers’ Union has called on the Government to end its role as “passive observer” in the Virgin voluntary administration process and to set out a plan for the airline and the rest of the aviation industry.

TWU National Secretary Michael Kaine said the first creditors’ meeting today was constructive and moved forward the process to get Virgin back to full flying and workers back at their jobs.

He said: “Administrators said they had already received inquiries from a number of ‘high quality’ interested parties. They said the reason for this level of interest at such an early stage was partly down to the ‘exceptional team’ Virgin has in its workforce

The administrators told creditors that there were no plans for redundancies, no closures or losses in the business. There won’t be a renegotiation of enterprise agreements and worker entitlements will continue to accrue, with assets to cover these entitlements.

Administrators confirmed that Virgin did not trade into voluntary administration but that the shut down prompted by COVID-19 caused its problem. When Government funding was sought but wasn’t forthcoming the company had no option but to appoint administrators.

We are keen for the Federal Government to reveal at this stage what role it is taking in this process and what potential plans it has to ensure Virgin can get back to functioning as Australia’s second airline.

We want to see the Government taking an equity stake and outlining a plan for the aviation industry. Virgin will not be the only aviation company to run into difficulties and if we are to guarantee jobs in the sector and the businesses and communities across Australia that depend on it, the Government needs to end its role as passive observer and reveal its plans.”