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Virgin Australia employees will receive $3,000 worth of share rights in a potential IPO.
In a note to staff seen by Australian Aviation, chief executive Dave Emerson said all eligible staff would automatically receive the “Take-Off Grant” in the relisting, which is rumoured to be planned for as soon as this year.
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“As you may be aware, our owners have been considering returning Virgin Australia to public ownership in the future,” he wrote.
“While we continue to operate as usual, we’ve been conducting preparatory work for a potential Initial Public Offering (IPO), including recent introductory meetings with potential investors in Australia and overseas.”
Emerson said eligible employees would receive their share rights at the time of the IPO, details and timing of which have yet to be determined.
“These rights would convert to ordinary shares after a 24-month vesting period, provided you remain employed with the Group.”
“Once vested, the shares would be yours to keep or sell as you choose. No upfront payment would be required from you to receive these shares.”
In a statement, TWU national secretary Michael Kaine said it was “a relief to see an aviation company treating workers as an investment rather than a cost to be ruthlessly cut”.
“Virgin workers have been hugely instrumental in returning this company from the brink of devastation to a strong second airline,” Kaine said.
“These workers have stuck loyally by Virgin during the toughest time aviation has ever faced, and this is a welcome announcement that workers have deservedly called for to recognise their efforts.
“Along with movement towards insourcing ground jobs, and commitments to consultation with workers around the Qatar partnership, we are seeing positive steps towards a better relationship between workers and Virgin.”
The TWU had previously called for Bain to commit to addressing “cultural issues” that have caused “high turnover, absenteeism and disputation”; providing “good, secure jobs” for pilots, ground staff and cabin crew; continuing to invest in technology, fleet and workers to “maintain and grow safe, fair standards”; providing an annual $1,000 employee share scheme in conjunction with the IPO; and supporting the union’s campaign for a Safe and Secure Skies Commission.
“With many areas of aviation in crisis, we now need to see Virgin join us in pursuing reform to return aviation to an industry that works for the whole community,” Kaine added.
Virgin Australia declined to comment.
