Virgin&Australia&(NZ)& EmploymentandCrewingLtd...

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Virgin Australia (NZ) Employment and Crewing Ltd

NZALPA Pilots Collective Employment Agreement 2013

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24 October2013

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TABLE OF CONTENTS

DEFINITIONS AND INTERPRETATION ............................................................................................................ 7

PART 1 – ABOUT THE AGREEMENT ............................................................................................................ 10

1 TITLE .............................................................................................................................................. 10

2 PARTIES .......................................................................................................................................... 10

3 COVERAGE ..................................................................................................................................... 10

4 APPLICATION ................................................................................................................................. 10

5 VARIATION ..................................................................................................................................... 11

6 DURATION ..................................................................................................................................... 11

7 RENEGOTIATION ............................................................................................................................ 11

8 SAVINGS ......................................................................................................................................... 11

9 WORKING TOGETHER/MUTUAL CO-‐OPERATION .......................................................................... 11

10 CONSULTATION ............................................................................................................................. 12

11 CONTRACT MANAGEMENT GROUP ............................................................................................... 13

PART 2 – PILOT DUTIES AND OBLIGATIONS ............................................................................................... 14

12 DUTIES ........................................................................................................................................... 14

13 PILOT OBLIGATIONS ...................................................................................................................... 14

14 POLICIES AND PROCEDURES .......................................................................................................... 14

PART 3 – EMPLOYMENT RELATIONSHIP ..................................................................................................... 15

15 AREA AND INCIDENCE OF DUTY .................................................................................................... 15

16 NEW EMPLOYEES ........................................................................................................................... 15

17 TYPES OF EMPLOYMENT ............................................................................................................... 15

18 RELEASE FROM DUTY FOR CMG, TECHNICAL & SAFETY AND OTHER REASONS ............................ 15

19 PROBATION ................................................................................................................................... 16

20 EMPLOYMENT REQUIREMENTS .................................................................................................... 16

21 REGULATORY REQUIREMENTS ...................................................................................................... 16

22 FLIGHT AND SAFETY DATA ............................................................................................................. 17

23 MEDICAL EXAMINATIONS .............................................................................................................. 17

24 CONTACT ....................................................................................................................................... 18

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25 TERMINATION OF EMPLOYMENT .................................................................................................. 18

26 FINAL PAY ...................................................................................................................................... 19

27 CERTIFICATE OF SERVICE ............................................................................................................... 19

28 ABANDONMENT OF EMPLOYMENT .............................................................................................. 19

29 EMPLOYMENT PROTECTION .......................................................................................................... 19

30 REDUNDANCY ................................................................................................................................ 21

31 PERFORMANCE MANAGEMENT .................................................................................................... 22

32 JUST CULTURE ............................................................................................................................... 22

33 SAFETY INVESTIGATIONS ............................................................................................................... 23

34 PERFORMANCE INVESTIGATIONS .................................................................................................. 23

35 SUBJECT TO OPERATIONAL CLEARANCE ........................................................................................ 24

36 EMPLOYMENT RELATIONSHIP PROBLEMS .................................................................................... 24

37 EMPLOYMENT SECURITY ............................................................................................................... 26

PART 4 – REMUNERATION ......................................................................................................................... 26

38 REMUNERATION PACKAGE ............................................................................................................ 26

39 ANNUAL BASE SALARY ................................................................................................................... 27

40 WHAT ANNUAL BASE SALARY COVERS .......................................................................................... 28

41 PAYMENT OF REMUNERATION ..................................................................................................... 28

42 SUPERANNUATION ........................................................................................................................ 29

43 OVERTIME ...................................................................................................................................... 29

44 WORKING ON DESIGNATED DAYS OFF AND ANNUAL LEAVE DAYS ............................................... 31

45 ALLOWANCES ................................................................................................................................ 31

46 ACCOMMODATION AND GROUND TRANSPORT ........................................................................... 32

47 SUSTENANCE AND BEVERAGES DURING FLIGHT ........................................................................... 33

48 CANCELLED ACCOMMODATION ALLOWANCE .............................................................................. 33

49 AD HOC TRAINING WORK ALLOWANCE ........................................................................................ 33

50 ASSOCIATION FEES ........................................................................................................................ 34

51 REIMBURSEMENT OF CLAIMS ....................................................................................................... 34

PART 5 – LEAVE .......................................................................................................................................... 35

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52 ANNUAL LEAVE .............................................................................................................................. 35

53 PUBLIC HOLIDAYS .......................................................................................................................... 36

54 SICK LEAVE ..................................................................................................................................... 36

55 BEREAVEMENT LEAVE ................................................................................................................... 38

56 PARENTAL LEAVE ........................................................................................................................... 38

57 LEAVE WITHOUT PAY ..................................................................................................................... 38

58 URTI LEAVE .................................................................................................................................... 39

59 UNAUTHORISED LEAVE .................................................................................................................. 39

60 EXTENDED PAID LEAVE .................................................................................................................. 39

61 CONTINUITY OF SERVICE AND LEAVE ACCRUALS .......................................................................... 39

PART 6 – INSURANCES AND INDEMNITY .................................................................................................... 40

62 INSURANCE .................................................................................................................................... 40

63 INDEMNITY .................................................................................................................................... 40

PART 7 – OPERATIONS ............................................................................................................................... 42

64 FATIGUE RISK MANAGEMENT SYSTEM (FRMS) ............................................................................. 42

65 ROSTERS ........................................................................................................................................ 42

66 HOURS OF WORK ........................................................................................................................... 42

67 DESIGNATED DAYS OFF (DDO) ....................................................................................................... 43

68 28 DAY RESERVE LINE .................................................................................................................... 44

69 Preferential Bidding System (PBS) ................................................................................................. 44

70 OPEN TIME SYSTEM ....................................................................................................................... 44

71 TRIP SWAP SYSTEM ....................................................................................................................... 45

72 RECORDS ........................................................................................................................................ 45

73 PERSONNEL FILE ............................................................................................................................ 45

74 UNIFORMS ..................................................................................................................................... 45

75 CAR PARKING ................................................................................................................................. 46

76 UNSCHEDULED OVERNIGHT REIMBURSEMENT ............................................................................ 46

77 SPECIAL SCHEDULING AGREEMENTS (SSAs) .................................................................................. 46

PART 8 – CAREER PROGRESSION AND TRANSFER OPPORTUNITIES ........................................................... 47

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78 PROMOTION AND TRANSFER OPPORTUNITIES ............................................................................. 47

79 PILOTS’ LIST ................................................................................................................................... 48

80 CAREER PROGRESSION PROCESS ................................................................................................... 49

81 BASE TRANSFERS ........................................................................................................................... 50

82 SECONDMENTS .............................................................................................................................. 51

83 BOND AND ENDORSEMENT ARRANGEMENTS .............................................................................. 51

PART 9 – GENERAL ..................................................................................................................................... 53

84 CONFIDENTIALITY .......................................................................................................................... 53

85 CONFLICT OF INTEREST ................................................................................................................. 53

86 PROTECTING REPUTATION ............................................................................................................ 53

87 PUBLIC STATEMENTS ..................................................................................................................... 54

88 COMPANY PROPERTY .................................................................................................................... 54

89 MISREPRESENTATION .................................................................................................................... 54

90 ANTI-‐DISCRIMINATION .................................................................................................................. 54

91 HEALTH AND SAFETY ..................................................................................................................... 54

92 DELEGATES’ RIGHTS ....................................................................................................................... 55

SIGNATORIES .............................................................................................................................................. 55

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DEFINITIONS AND INTERPRETATION Agreement Means the Virgin Australia (NZ) Employment and Crewing Ltd

NZALPA Pilots’ Collective Employment Agreement 2013. Act Employment Relations Act 2000 (NZ), as amended or replaced. Ad Hoc Training Work Means ad hoc ground training in Safety and Emergency

Procedures, Non-‐Technical Skills, and any other ground training function required by the Company.

Assign/ed Means allocation to a Pilot of a duty or period of leave for which

the Pilot has not bid. Award/ed Means allocation of a Pilot to a duty or period of leave as a result

of the Pilot’s bid or acceptance of an offer. Blank Day Means a day that is not a duty day, designated day off or a leave

day. It means a day when a Pilot is not required to be available for duty and must be rostered at home base.

CAA Means the Civil Aviation Authority of New Zealand. Captain Means a Pilot who is appointed in writing by the Company to act

as a Pilot in Command of an aircraft. Company Means Virgin Australia (NZ) Employment and Crewing Limited. Contract Management Group (CMG) Means a committee comprising the nominated Company and/or

Virgin Group representatives and three (3) NZALPA Pilot representatives nominated by the Pilots’ Council, and where requested by pilot representatives, a representative of NZALPA. The CMG shall meet regularly to deal with the following, but not limited to, the standards of meals and accommodation; car parking and transport; port information; scheduling and Scheduling Rules, including hours of work; Preferential Bidding System (PBS); and any matters as otherwise provided for in this Agreement.

Day Means a calendar day. Designated Day Off Is a period during which the Pilot will be free of all duty at Home

Base or base to which temporarily transferred. A single DDO shall include two (2) local nights.

Duty Means the work of a Pilot and covers any and all activities

associated with being a Pilot including flying, simulator, positioning, reserve, duty travel, ground based courses and Company initiated meetings which may be required of a Pilot by the Company in accordance with rules provided in this Agreement.

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Duty Period Means any single continuous period during which a Pilot is

assigned a duty. The duty period will commence from the Company designated report (sign-‐on) time, include any assigned activity, and finish at the Company designated finish (sign-‐off) time or on completion of all post-‐flight duties on the final sector.

First Officer Means a Pilot who is appointed in writing by the Company to act

as second in command of an aircraft. Flying Duty Means any time during which a Pilot operates in an aircraft as a

member of its operating flight crew. It starts when the Pilot is required by the Company to report for a flight and finishes 30 minutes after the on-‐chocks time or on completion of all post flight duties on the final sector.

Flight Examiner Means a Pilot engaged by the Company in writing in checking

and/or training duties. Flight Time Means any time in which a Pilot operates in an aircraft as a

member of its operating flight crew. It is the total time from the moment the aircraft first moves for the purpose of flight until the moment it comes to rest at the end of the flight, including all associated push back, taxiing and subsequent holding time.

Holidays Act Means the Holidays Act 2003 (NZ) , as amended or replaced. Home Base Is the base to which a Pilot is permanently assigned and will be

nominated in writing by the Company. Hourly Rate Means a Pilot’s annual base salary divided by 834 (pro-‐rated for

part-‐time pilots, eg. for PT50 the hourly rate is the annual base salary divided by 417).

Local Night Is a period of eight (8) consecutive hours falling between 2200

hours and 0800 hours local time. Management Pilot Means the Management Personnel as specified in Section 0 of

the Virgin Australia (NZ) Operations Manual (A1) and includes the Chief Pilot, Manager Flight Operations, Line Operations Manager, Training Manager, and Senior Base Pilots.

NZALPA and The Association and The Union Means the New Zealand Air Line Pilots' Association Industrial

Union of Workers (Incorporated). Open Time Scheduled flying that does not currently have an operating crew

assigned. Parties Means the Company and NZALPA.

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Pilot Means and includes any duly qualified employee who is engaged by the Company for the purpose of operating as a member of the aircraft's flight crew.

Pilots’ Council Means the NZALPA Virgin Pilots’ Council (or its replacement) as

elected by the Virgin NZALPA Pilot membership from time to time.

Positioning Means transferring a Pilot between ports as a passenger in

surface or air transport and shall count as duty time. Where positioning forms part of a flying duty, the positioning will be counted as a sector and included within the applicable operating crew duty period limitations.

Rest Period Means any period of time on the ground during which a Pilot is

relieved of all duties by the Company. Roster Period Means a 28 day period covered by a single roster. Rostered Duty Is a duty period, or series of duty periods, with stipulated start

and finish times. Sector Means the time between an aircraft first moving under its own

power until it completes the flight and comes to rest at the designated parking position.

Training Captain Means a Pilot engaged by the Company in writing to perform

training duties. Unassigned Day Means the same as defined in the FRMS (as amended). The

current definition of Unassigned Day in the FRMS is outlined in Appendix 1.

Virgin, Virgin Group or Virgin Australia Means the Virgin Australia Group of Companies including Virgin

Australia Holdings, Virgin Australia Airlines and related entities as defined in the Corporations Act 2001 (Aus).

Week Means a period of 7 consecutive days starting at 0001 on a

Monday.

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PART 1 – ABOUT THE AGREEMENT

1 TITLE

1.1 This agreement will be known as the Virgin Australia (NZ) Employment and Crewing Ltd NZALPA Pilots’ Collective Agreement 2013 (Agreement).

2 PARTIES

2.1 The Parties to this Agreement are:

(a) Virgin Australia (NZ) Employment and Crewing Limited (the Company); and

(b) The New Zealand Air Line Pilots’ Association Industrial Union of Workers Incorporated (NZALPA).

3 COVERAGE

3.1 This Agreement covers all employees of the Company employed as Pilots in New Zealand in the following classifications who are NZALPA members:

(a) Flight Examiners;

(b) Training Captains;

(c) Captains; and

(d) First Officers,

(collectively, the Pilots).

3.2 For the avoidance of doubt, should the Company change the titles of the above roles without substantially changing the function of the role, the terms of this Agreement will apply to the newly titled role.

3.3 This Agreement applies in respect of jet aircraft only. To avoid doubt, it applies in respect of all jet aircraft, irrespective of type, including aircraft operated currently and any new aircraft introduced during the life of this Agreement.

4 APPLICATION

4.1 This Agreement is a comprehensive agreement containing the entire agreement between the Parties and replaces and excludes all other agreements that might otherwise apply to the Pilots covered by this Agreement.

4.2 The Company will provide each Pilot with a copy of this Agreement upon ratification and/or initial employment.

4.3 While this Agreement does not apply to Management Pilots at the Company, Management Pilots are able to return to a Flight Examiner, Training or line operations position. Where this occurs, and subject to clause 3.1, the Pilot will be bound by the terms and conditions of this Agreement and their position on the Pilots List will be recognised for all purposes.

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5 VARIATION

5.1 This Agreement and any or all of its provisions may be varied at any time during its term by formal written agreement between NZALPA, subject to its ratification by the NZALPA members covered by this Agreement using the ratification procedures used by them for the ratification of this Agreement, and the Company and signed by a representative of each organisation having the authority to sign contractual matters on behalf of their organisation.

5.2 Where no agreement is reached, or the proposed variation fails to be ratified, the provisions of this Agreement shall continue to apply and the subject of those negotiations may not be raised as a proposed variation to the Agreement again during the term of this Agreement, except by agreement between the Company and NZALPA.

6 DURATION

6.1 This Agreement shall operate for a period of three (3) years and commences on the first full roster period following ratification, and shall continue in force until [DATE] November 2016.

7 RENEGOTIATION

7.1 The Parties agree to commence negotiations for a replacement Agreement promptly and without delay after bargaining has been formally initiated by one of the Parties. Negotiations for a replacement agreement will commence at least three (3) months prior to its expiry.

7.2 Pilot representatives shall be rostered to attend the negotiations and the Company will provide them with travel, accommodation and allowances when meetings are not held in the Pilot's Home Base.

8 SAVINGS

8.1 No Pilot by reason of the making of this Agreement shall incur any reduction in their present equipment category, salary or rank.

9 WORKING TOGETHER/MUTUAL CO-‐OPERATION

9.1 A key objective of this Agreement is to enshrine a collaborative and mature system of engagement, process and productivity for the Company and its Pilots.

9.2 During the course of employment, the Parties will develop and implement processes and systems consistent with the following principles:

(a) The Company will be a safe and healthy workplace where every Pilot should expect to work without injury;

(b) There will be open and effective employee relations based on flexibility, mutual respect and recognition of the contribution and performance of all employees;

(c) The Parties and Pilots covered will work together as a team through effective and open communication and performance of all;

(d) The Parties and Pilots covered will identify and work to implement opportunities for improving the Company’s business;

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(e) The Parties and Pilots are committed to open and effective communication as a means of resolving any issues that may arise.

10 CONSULTATION

10.1 The Company will consult with the CMG and its affected Pilot members over any proposals which will have major workplace changes.

10.2 The process of consultation will include, among other things:

(a) The timely provision in writing, of all relevant information, including details of the change or proposed change, the likely effects on Pilots, the reasons for the change or proposed change and, where relevant, a proposed implementation date;

(b) Discussion on measures to avert or mitigate any adverse effects on Pilots;

(c) Provision of reasonable resources, including work time, air travel, accommodation and allowances etc for Pilots to fully participate in the consultation process;

(d) Genuine consideration of Pilots’ and NZALPA’s suggestions, ideas and contributions;

(e) Genuine opportunity for Pilots and NZALPA to affect the outcome.

10.3 As soon as a final decision has been made, the Company shall notify NZALPA and the affected Pilots of the decision in writing and explain the effects of the decision.

10.4 The notification in clause 10.3 must include details about the change, the effects and an implementation date. The implementation date will not be earlier than 14 working days from the date of notification, unless safety concerns demand otherwise or this is otherwise agreed with NZALPA. The notification will be signed by or under the hand of a senior Company representative.

10.5 If, however, at the conclusion of this consultative process NZALPA or any affected Pilot have concern(s) about the decision they have 10 days in which to raise such concern(s) using the Employment Relationships Problems process in this Agreement. To avoid doubt, a concern about the decision includes a concern not only about the way in which consultation was carried out but also about the decision insofar as it affects Pilots.

10.6 Both Parties to this Agreement must act in good faith in relation to the consultation process provided in this clause.

10.7 While the above consultation process is taking place, the Parties will respect the status quo.

10.8 In this clause:

(a) “Good faith” includes obligations to meet, disclose relevant information, genuinely consider proposals and respond with reasons, and to refrain from capricious, vexatious or unfair conduct that undermines consultation;

(b) "Major workplace changes" include, but are not limited to, such events as:

(i) the introduction of an aircraft type (by leasing, purchase or otherwise) other than those operated at the commencement of this Agreement;

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(ii) changes to routes or route structures (that will span for a period of 3 months or more) which involves the introduction of long haul international or domestic flying;

(iii) a significant change to the composition, operation or size of the Company’s workforce or to the skills required of Pilots;

(iv) changes to existing policies or the introduction of new policies that place additional responsibilities or duties on Pilots (i.e. non-‐technical or behavioural/leadership responsibilities as opposed to those provided by their Pilot’s licence);

(v) the elimination or diminution of job opportunities, including opportunities for promotion or tenure;

(vi) the need to retrain Pilots;

(vii) the restructuring of jobs and/or any situation that may give rise to redundancies;

(viii) changes to the legal and/or operational structure of the Company or its business;

(ix) changes to the minimum selection criteria for roles covered by this Agreement (e.g. changes to minimum flight hours requirements).

10.9 From a timing perspective, changes to the minimum selection criteria for roles covered by this Agreement cannot be made unless a minimum six (6) week consultation period has occurred, or unless otherwise agreed.

11 CONTRACT MANAGEMENT GROUP

11.1 A Contract Management Group (CMG) consisting of three (3) NZALPA pilots and nominated Company or Virgin Group representatives shall meet at least six (6) times a year to discuss issues including, but not limited to, FRMS review, rostering, standard of meals/accommodation, car parking and transport, port information, scheduling and scheduling rules (including hours of work), Preferential Bidding System, 28 day reserve line and other matters covered by this Agreement.

The Company will facilitate the attendance of the three (3) NZALPA pilot representatives at the CMG, for example, by committing to release them if they are rostered on to work on a meeting day. Where requested by pilot representatives, a representative of NZALPA can attend these meetings.

11.2 Pilot representatives not on approved leave, shall be rostered to attend all meetings of the CMG. To ensure CMG meetings are rostered, NZALPA will notify the Company of any changes to their nominated pilot representatives at least prior to the PBS cutoff date for the roster period in which the CMG meeting is to be scheduled.

11.3 All costs associated with Pilot representatives carrying out functions of the CMG shall be met by the Company, including but not limited to travel, accommodation and allowances when meetings are not held in a Pilot’s Home Base.

11.4 NZALPA officials are invited to attend and participate in CMG meetings at their own expense.

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PART 2 – PILOT DUTIES AND OBLIGATIONS

12 DUTIES

12.1 Pilots are expected to be proficient in the performance of their duties at the Company.

12.2 Pilots accept that the accountabilities and behaviours, reporting structure and duties and responsibilities may be altered by the Company from time to time to meet the changing needs of the Company after consultation with the CMG. Such changes shall not be inconsistent with the provisions of this Agreement.

12.3 Pilots may agree to undertake additional duties within their skills and experience to meet the requirements of the Company. A direction to undertake any such additional duties must be both lawful and reasonable.

13 PILOT OBLIGATIONS

13.1 During their employment, Pilots agree to act in an open and honest manner and to undertake their duties and responsibilities consistent with the requirements of the role at all times, including applying care and common sense in the performance of their work. Pilots will consistently display an absolute commitment to maintaining good working relationships with the Virgin Australia staff and other persons or companies with whom the Company has business relationships.

13.2 Pilots will at all times use their best endeavours to promote and protect the general interests, profitability and reputation of the Company and other companies with whom the Virgin Group has business relationships. Both parties to this agreement are expected to act honestly in all of their dealings.

14 POLICIES AND PROCEDURES

14.1 Pilots agree to comply with the policies and procedures of the Company which apply to them as varied or introduced from time to time. Where there is significant change or a new policy that impacts the Pilots, consultation will occur. The Company will make available these policies and procedures to Pilots and Pilots agree to remain familiar with these policies and procedures. Such policies and procedures shall not be inconsistent with the provisions of this Agreement.

14.2 Failure to comply with these policies may result in disciplinary action up to and including termination of employment.

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PART 3 – EMPLOYMENT RELATIONSHIP

15 AREA AND INCIDENCE OF DUTY

15.1 The Company shall employ its Pilots and the Pilot shall serve the Company in the capacity of Pilot whether in New Zealand or any other part of the world where the Company may from time to time reasonably require.

16 NEW EMPLOYEES

16.1 In accordance with the Act, new hire Pilots who are or become members of NZALPA shall be covered by this Agreement.

16.2 New hire Pilots who are not members of NZALPA shall, for the first 30 days or until such time during that period as they join NZALPA, be employed under the terms of this Agreement as if they were covered by it.

16.3 After 30 days, new hire Pilots who are not members of NZALPA may elect to join NZALPA or to be employed under an individual employment agreement in accordance with the Act.

17 TYPES OF EMPLOYMENT

17.1 Full time and part-‐time Pilots can be engaged on a permanent basis or, as provided by New Zealand Law, for a fixed term or fixed task.

17.2 The Company commits to facilitating part-‐time work. Within two (2) months of ratification of this Agreement, the Company will ensure part-‐time work arrangements are made available for a maximum of 5% of the total number of flight crew by rank and New Zealand base.

17.3 A Pilot's letter of appointment will outline, amongst other things, their employment status and Home Base.

17.4 During the life of this Agreement, the CMG may agree on various flexible work time arrangements (including but not limited to part-‐time, roster on/roster off, roster share etc). Once agreed, details of such arrangements will be recorded in writing.

17.5 Pilots may agree to be employed on flexible work time arrangements which have been established in accordance with clause 17.4 above.

17.6 Pilots employed on flexible work arrangements will work to the same terms and conditions as full time Pilots unless otherwise specified in this Agreement, any flexible work arrangements document or letter of appointment (as agreed under clause 17.4). Remuneration and leave provisions for Pilots on flexible work time arrangements will generally be pro-‐rated, except where permitted by law. Those Pilots already on flexible work arrangements will continue on those arrangements as per their letter of appointment.

18 RELEASE FROM DUTY FOR CMG, TECHNICAL & SAFETY AND OTHER REASONS

18.1 On request from NZALPA the Company will, if operationally possible, use its best endeavours to release a nominated NZALPA CMG, Technical & Safety or other representative from flying duty to attend to any aviation accident or incident investigation or similar event in New Zealand or involving a New Zealand registered aircraft.

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18.2 On request from NZALPA the Company will, on a case by case basis, consider releasing from duty other Virgin NZALPA nominated members to attend industry related meetings, conferences, educational opportunities, or similar. NZALPA shall, wherever possible, provide the Company with at least three (3) months’ notice of any such event. Wherever possible the Company will make its best endeavours to facilitate the release of such nominees.

18.3 In all cases the Company shall also consider, at NZALPA’s request, whether such release from duty will be on pay, and whether, and to what degree, the Company will provide FOC travel for the purpose of attending the event or accident or incident investigation.

19 PROBATION

19.1 From commencement with the Company, a Pilot’s employment is subject to a probationary period of six (6) months during which time their performance and conduct will be appraised and monitored.

19.2 After completion of the probationary period, subject to satisfactory performance, a Pilot's employment will be confirmed in writing.

19.3 The Company reserves the right to terminate a Pilot’s employment at any time during the probationary period by giving two (2) weeks (written notice or payment in lieu of notice or a combination of both). Pilots will be required to give the Company the same written notice should they wish to leave their employment during the probationary period.

19.4 The Company reserves the right to extend a Pilot’s probationary period should this be considered necessary on reasonable grounds.

19.5 During the probationary period the right of the Company to instantly dismiss a Pilot for serious misconduct will remain.

19.6 If a Pilot has transferred their employment to the Company from another Company in the Virgin Group, their employment at the Company is not subject to a probationary period. The one exception to this is if a Pilot has been employed for less than six months by a company within the Virgin Group before transferring to the Company. If that happens, then the Pilot’s probationary period at the Company will be the difference between the period of time served at the other Virgin Group Company and six months.

20 EMPLOYMENT REQUIREMENTS

20.1 It is an on-‐going condition of employment that Pilots obtain, and keep valid and current at all times, all applicable licences, medicals, and qualifications (including any requirement set out in their letter of appointment and the Company operating manuals) which are required by the Company and/or by the applicable Civil Aviation Authority or other competent authority to enable Pilots to carry out their duties.

20.2 Pilots agree to act in accordance with the Company’s drug and alcohol policy in force from time to time. Any changes to current policy or New Zealand/Australian regulatory policy will require consultation with CMG.

21 REGULATORY REQUIREMENTS

21.1 The Company is subject to the applicable aviation authority requirements. Pilots are required to comply with all applicable aviation authority requirements, as relevant to their role.

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21.2 Whilst at work in an aviation security protected area, Pilots will be required to comply with all statutory and other requirements imposed in respect of that protected area. The Company will make arrangements to apply for and secure the necessary permit to enter the protected area on the condition that their application is acceptable to the government or other controlling authority of any protected area. It is an ongoing requirement of employment that Pilots maintain their security clearance in accordance with the requirements of the Company and the controlling authority.

21.3 Working for the Company necessitates Pilots being able to travel and work outside of New Zealand. It is an on-‐going condition of employment that Pilots keep operative and current at all times a passport. A Pilot's passport must have at least twelve (12) months validity, and include any visas or entry permits which are prescribed by countries through which the Company operates, and which the Company requires Pilots to obtain.

21.4 The Company will fully reimburse the costs associated with the maintenance of relevant passports and visas following provision of relevant supporting documentation (including receipts).

21.5 The Company will pay for all vaccinations to Pilots that are required or recommended by relevant health authorities to enter the countries into which the Company flies or as otherwise required.

22 FLIGHT AND SAFETY DATA

22.1 The sole purpose of protecting safety information from inappropriate use is to ensure its continued availability so that proper and timely preventive actions can be taken and safety improved.

22.2 Data Collection and Processing Systems, including any Recording Systems and Associated Analysis systems shall comply with the relevant International Civil Aviation Organisation (ICAO) documentation, principles and recommendations, including but not limited to, Annex 6, Flight Data Analysis Programme, and Annex 13 Attachment E, Legal Guidance for the Protection of Information from Safety Data Collecting and Processing Systems.

22.3 Specifically, a Flight Data Analysis Programme shall be non-‐punitive and contain adequate safeguards to protect the source(s) of the data. (ICAO Annex 6 Chapter 3, 3.3.7).

22.4 To the extent there is inconsistency between the above and relevant law or regulations, the law or regulations will prevail.

23 MEDICAL EXAMINATIONS

23.1 The Company will cover full reimbursements for all standard medical tests and examinations associated with completed NZ Pilot licence medical certificate renewals. This includes reimbursement of up to $350 for testing by a CAA approved medical practitioner (upon production of receipts) and the cost of the CAA administration fee (currently $315).

23.2 Pilots agree that the Company may, at its expense, require Pilots to undergo a medical examination by a registered medical practitioner/specialist of the Company’s choice (after the Company has considered the Pilot’s wishes in respect of the appointment of the registered medical practitioner/specialist) and a copy of any medical report, assessment or relevant information furnished by such medical practitioner shall be available to both Parties. The Company may exercise this right in the following circumstances:

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(a) where the Company requires a medical clearance prior to a Pilot returning to work after a period of absence due to a medical condition;

(b) where the Company has a reasonable concern about whether or not a Pilot can perform their work without an unacceptable level of risk;

(c) where a Pilot is claiming their medical condition is work related;

(d) where a Pilot is having difficulty in achieving pre-‐flight rest;

(e) where a Pilot is unable to continue their rostered work duties after the commencement of a duty (e.g. mid duty sickness);

(f) when determining whether granting a Pilot ongoing sick leave is appropriate;

(g) when determining whether a Pilot’s employment should be terminated for incapacity.

(h) When obtaining a second opinion where a Pilot has provided a medical certificate/report.

24 CONTACT

24.1 Within reason, Pilots are required to be contactable by telephone and have the ability to access the internet.

24.2 In return, the Company will at all times have regard to Pilot’s need for undisturbed rest when contacting Pilots preceding a duty.

24.3 The Company will endeavour to provide Pilots with as much notice as possible of roster changes. Pilots should take full advantage of the company electronic portal for self-‐monitoring, acceptance and acknowledgement of roster changes.

24.4 Unnecessary contact on a Designated Day Off or an approved leave day is to be avoided. If contact is to be made, then subject to operational considerations, the Company will do that between 0800 and 2200 local time.

24.5 Pilots must ensure the Company has their current home email address, home address, home (or any temporary place of residence) and mobile contact telephone numbers to allow the Company to contact Pilots on business related matters.

24.6 Pilots must also provide the Company with an emergency contact phone number (e.g. their home phone or the number of a relative or friend).

24.7 Whilst on a Reserve duty, Pilots must be immediately contactable by telephone.

24.8 For overnight ports, the Company will endeavour to provide Pilots with access to a telephone facility by which they can contact the Company, using an approved provider, at no cost. Should this not be possible then the Company will reimburse the pilot for any Company business related phone call costs upon the production of receipts.

25 TERMINATION OF EMPLOYMENT

25.1 Should the Company decide to terminate a Pilot’s employment, the Company will give the Pilot two (2) month’s written notice, or payment in lieu thereof (or a combination of both).

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25.2 The requirement to give notice applies to termination for any reason, except if the termination is for serious misconduct or clause 19.3 applies.

25.3 If a Pilot resigns from the Company, they are required to provide two (2) months written notice, unless otherwise waived by the Company. A Pilot and the Company may mutually agree to waive the notice period.

25.4 If a Pilot does not provide the required period of notice, the Company has the right to withhold monies due to the Pilot, to an amount equal to the annual base salary for the period of notice not worked.

25.5 If the Company terminates a Pilot's employment while they are away from Home Base, the Company will fly the Pilot back to their Home Base.

26 FINAL PAY

26.1 When a Pilot’s employment comes to an end, irrespective of the circumstances, the Company will make the final pay by direct credit to the Pilot’s nominated bank account in the next available pay run subject to a finishing up checklist being completed.

27 CERTIFICATE OF SERVICE

27.1 The Company shall provide a Pilot with a certificate of service within three (3) business days of a Pilot making such a request following the cessation of their employment.

28 ABANDONMENT OF EMPLOYMENT

28.1 If a Pilot is absent from work for a continuous period of three (3) days without consent of or notification to the Company, the Pilot will be deemed to have terminated their employment. The Company shall make reasonable efforts to contact the Pilot during this period.

28.2 If the Pilot is unable to notify the Company of their absence due to unforeseen hospitalisation or similar emergency, they will be reinstated without a break in continuous service.

29 EMPLOYMENT PROTECTION

29.1 In the event of restructuring (as defined in section 69OI of the Act), so that the work of some or all of the Pilots is to be performed for a new employer, the following provisions relating to the negotiations between the Company and the new employer shall apply. For clarity, these situations would also be classified as major change under clause 10 of this Agreement and those provisions would apply concurrently to the below process.

29.2 Definitions:

(a) “New employer”, “restructuring”, and “affected employee” shall have the meaning given to them in section 69OI of the Act.

(b) “Affected Pilot” shall have the same meaning as “affected employee”.

29.3 The Company shall follow the process set out below when negotiating with the new employer:

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(a) Inform the new employer that the Company wishes to negotiate in relation to the possible transfer of affected Pilots to the new employer and the terms and conditions of employment of those transferring Pilots;

(b) Put a proposal to the new employer, and/or consider the new employer’s proposal, in relation to whether affected Pilots will transfer to the new employer and if so the terms and conditions of employment that they will transfer on; and

(c) Seek to reach an agreement with the new employer on whether any or all of the affected Pilots will transfer to the new employer and on what terms and conditions of employment.

29.4 Matters that shall be negotiated between the Company and the new employer shall include:

(a) Whether Pilots will be transferred to the new employer, and if so the total number of Pilots to be affected;

(b) The base(s) to be affected;

(c) The proposed date for commencement of employment with the new employer;

(d) The terms and conditions of employment of affected Pilots who transfer to the new employer. The Company will encourage the new employer to offer all affected Pilots employment on the same or no less favourable terms and conditions of employment as those contained in this Agreement. Whether the new employer offers Pilots on-‐going employment and on what terms and conditions, will ultimately be the decision of that new employer;

(e) The reasonable period of time prior to the date of transfer that is to be available to enable an affected Pilot to make his or her election as to whether to transfer or not.

29.5 The Company shall advise Pilots and the Pilots’ Council of the outcome of the negotiations with the new employer as soon as possible.

29.6 Process to be followed at the time of restructuring to determine entitlements for those who do not transfer:

(a) If at the time of restructuring some or all of the affected Pilots are not to transfer to the new employer, the Company shall advise Pilots and the Pilots’ Council of:

(i) the position and/or number of affected Pilots that are not to be offered transfer;

(ii) whether at the time of restructuring a redundancy situation will exist with regard to any non-‐transferring Pilots;

(iii) other entitlements (if any) that are available to non-‐transferring Pilots.

(b) In the event that a redundancy situation exists in the Company at the time of restructuring, the provisions of clauses 25 and 26 shall apply.

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30 REDUNDANCY

30.1 Redundancy is a condition in which the Company has Pilot(s) surplus to requirements. To avoid doubt, a Pilot covered by this Agreement can only be made redundant if a position covered by this Agreement is made redundant.

30.2 The Company will ensure that redundancies are implemented as a last resort, only after all other reasonable measures to avoid redundancies have been considered. Involuntary redundancies can only occur if there are an insufficient number of Pilots willing to take a voluntary redundancy.

30.3 If the Company decides to make a Pilot’s role redundant then the provisions of this clause will apply, unless otherwise specified in this Agreement.

30.4 If a Pilot’s employment is terminated as a result of redundancy and suitable alternative employment is not offered, the Pilot will receive redundancy compensation in addition to the period of notice as set out in clause 25.

30.5 "Suitable alternative employment" means no disadvantage to the Pilot in terms of rank and annual base salary, or as agreed between the Company and the Pilot.

30.6 The redundancy compensation payable will be based upon the Pilot’s period of continuous service in accordance with the table below:

Period of continuous service Redundancy Compensation Less than 1 year Nil 1 – 2 years 4 weeks’ pay 2 – 3 years 6 weeks’ pay 3 – 4 years 7 weeks’ pay 4 – 5 years 8 weeks’ pay 5 – 6 years 10 weeks’ pay 6 – 7 years 11 weeks’ pay 7 – 8 years 13 weeks' pay 8 – 9 years 14 weeks’ pay 9 – 10 years 16 weeks’ pay 10 years and over 16 weeks’ pay

Redundancy compensation will be calculated according to a Pilot’s Annual Base salary.

30.7 A Pilot will not be entitled to redundancy compensation if: the Company provides an offer of suitable alternative employment; if the Pilot's employment is summarily terminated for reasons of serious misconduct; or the Pilot is offered employment by a New Employer in the event of a restructuring of the Company, on the same or no less favourable terms and conditions of employment as those contained in this Agreement or on terms and conditions acceptable to the Pilot.

30.8 If a Pilot’s employment is terminated as a result of redundancy, the Company will also provide the following (i.e. in addition to redundancy compensation and notice/payment in lieu of notice):

(a) reasonable time off work and continued access to staff travel before employment ends to assist the relevant Pilot to look for alternative work;

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(b) access to external outplacement services to help the relevant Pilot prepare a CV and look for alternative work; and

(c) access to the Company's Employee Assistance Program.

30.9 If a Pilot’s employment is terminated by reason of redundancy, the Pilot may terminate their employment during the notice period and, if so, will be entitled to the same benefits and payments under this clause as if the Pilot had remained with the Company until the expiry of the notice period. However, in this circumstance, a Pilot will not be entitled to payment in lieu of notice.

30.10 Where the Company believes that the employment of any Pilot is likely to be terminated wholly or mainly because the Pilot’s role has become redundant, the Company will consult with the NZALPA Pilots’ Council in accordance with clause 10 of this Agreement with the objective of minimising the impact of redundancies.

30.11 Should the need for redundancy arise, it will be implemented on a last-‐on-‐first-‐off basis (i.e. position on pilots list) if no other agreement can be reached between the Parties.

31 PERFORMANCE MANAGEMENT

31.1 It is important that Pilots have a clear understanding of what is expected of them in their role as a Pilot. For this reason, expectations surrounding performance and conduct are set out in this Agreement, a Pilot’s letter of appointment, and applicable policies, procedures and operational manuals of the Company.

31.2 Where a Pilot’s performance does not meet the required standards, the Company may put in place measures to address their performance. These measures may include a formal or informal development plan.

31.3 A Pilot may be displaced from their duties or required to attend a meeting (during working hours) in order to participate in discussions in relation to their performance or conduct. This includes circumstances where a Pilot is required to assist in matters that involve other crew. Where disciplinary action may be a potential outcome of a meeting, a Pilot will be advised of this in advance of the meeting. A Pilot attending an interview shall be entitled to be accompanied by another Pilot of his choice and/or a representative of NZALPA or a legal representative. A reasonable opportunity to arrange this will be provided.

32 JUST CULTURE

32.1 Just culture is an organisational value that encourages mutual trust and open reporting by adopting a fair and consistent approach to the management of events.

32.2 Pilots who make honest mistakes or misjudgements will not incur disciplinary action provided that they report such incidents, and that the below do not apply:

(a) Premeditated or intentional harm to people or equipment or property; or

(b) Actions or decisions involving a reckless or wilful disregard toward the safety or security of our guests, property or fellow team members; or

(c) Failure to report safety incidents, hazards or risk exposures as required by the Company's or regulatory agency policy.

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33 SAFETY INVESTIGATIONS

33.1 A safety investigation is a process conducted for the purpose of accident prevention which includes the gathering and analysis of information, the drawing of conclusions, including the determination of causes and/or contributing factors and, where appropriate, the making of safety recommendations. The sole objective of a safety investigation of an accident or incident shall be the prevention of accidents or incidents. It is not the purpose of this activity to apportion blame or liability. Except where provided in law, safety information shall not be used for purposes different from the purpose for which it was collected, namely, the inappropriate use of information for disciplinary, civil, administrative and criminal proceedings against operational personnel and/ or disclosure of information to the public. Safety investigations will normally be carried out under the direction of the Manager – Safety Systems.

33.2 In the case of safety investigations, the Company will, at the request of a Pilot, brief the nominated NZALPA safety representative about any safety investigation involving that Pilot. The Company will ensure that the representative is kept up-‐to-‐date with ongoing developments of the investigation and is briefed on the outcome, safety recommendations and changes to procedures implemented as a result of the safety incident.

34 PERFORMANCE INVESTIGATIONS

34.1 There may be instances where it is necessary to investigate an incident or the conduct of a Pilot, or where a Pilot’s performance requires addressing.

34.2 Preliminary investigation meetings may be held where it is necessary to obtain a Pilot’s version of events prior to making a decision on whether a disciplinary process needs to be initiated.

34.3 Where a disciplinary process is initiated, the Company will follow a fair and reasonable process to ensure any determinations and outcomes resulting in disciplinary action are reached in accordance with the principles of procedural fairness. As part of this process:

(a) A Pilot will be provided with details of the allegations relating to their performance and/or conduct in writing.

(b) A Pilot will be given an opportunity to respond to the matters raised and provide a justification.

(c) A Pilot’s response will be considered before making a decision.

(d) A Pilot will be advised in writing of the decision and any further proposed action.

34.4 Where the Company considers it necessary for the protection of its operational and business interests, it may require a Pilot to undertake reduced or alternative duties consistent with their abilities or remain away from work on pay (base salary only), while it conducts an investigation into their conduct as an employee, or their performance.

34.5 A Pilot is entitled to have a representative or support person of their choice present in any meetings where disciplinary action is a potential outcome. In these meetings the Pilot will be provided with a reasonable opportunity to arrange for a representative or support person to be in attendance.

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34.6 In the event that disciplinary action is taken based on a Pilot’s performance or conduct, the range of available actions may include but are not limited to counselling, verbal/written warnings, demotion or termination of their employment.

35 SUBJECT TO OPERATIONAL CLEARANCE

35.1 Where the Company considers it necessary for operational and/or regulatory reasons (e.g. failure to maintain required competency) the Company may require a Pilot to undertake reduced or alternative duties (e.g. additional training) or remain away from work, on pay (base salary only), while it conducts a review of the Pilot’s competency. While subject to operational clearance the Pilot is to remain available for meetings or duties.

36 EMPLOYMENT RELATIONSHIP PROBLEMS

36.1 The Parties encourage early resolution of employment relationship problems. Any problems should be raised and discussed as soon as practicable.

36.2 The following is a plain language explanation of the procedures for the resolution of employment relationship problems. If Pilots require further information or help in this regard, they may contact NZALPA, the Company or the Ministry of Business, Innovation and Employment.

36.3 No person should rely solely on the summary below in determining his or her rights and obligations under the legislation. Advice should be sought to assist in ensuring compliance with the legislation in any situation of employment relationship problem. The Pilot has the right to be represented at any stage of the process below.

36.4 An employment relationship problem can be anything between a Pilot and the Company except for bargaining over new terms and conditions of employment.

36.5 Pilots may have a personal grievance if they believe they have been disadvantaged by something the Company did or did not do which arises during the period of employment. A Personal Grievance might include:

(a) Dismissal from employment;

(b) Disadvantage in employment;

(c) Discrimination in employment;

(d) Sexual harassment during employment;

(e) Racial harassment during employment; and/or

(f) Duress about membership or non-‐membership of a union.

36.6 There can also be dispute about entitlements or obligations under this Agreement such as:

(a) Disputes about what the terms and conditions of employment mean and how they should apply;

(b) Disputes about the payment of remuneration and allowances;

(c) Claims that the duty of good faith behaviour in employment has not happened; and

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(d) Unjustified disadvantage on affected Pilots following any consultation process or failure to follow the consultation process outlined in clause 10 of this Agreement.

36.7 Process:

The objective is to ensure that any problem is raised at the source of the grievance or dispute, so that the problem can be resolved promptly.

(a) Step 1 – Informal Discussion: Any Pilot who considers that he or she has an employment relationship problem should first raise the problem with the Company as soon as possible and attempt to resolve it by discussion.

(b) Step 2 – Written Statement: If Sep 1 is unsuccessful in resolving the problem or is not appropriate in the circumstances, the Pilot should provide the Company with a written statement detailing the nature of the employment relationship problem; the facts relied upon; and the remedy sought.

(c) Step 3 – Formal Meeting: As soon as possible but not later than 14 days after receipt of the written statement (unless otherwise agreed with the Pilot), the Company shall arrange a meeting with the Pilot, to attempt to resolve the problem.

(d) Step 4 – Internal Escalation: If the matter is not able to be resolved at Step 3, it will be referred to the next most senior manager to attempt to resolve the problem. This may involve a further formal meeting.

(e) Step 5 – Mediation: If the discussions in Step 4 do not resolve the problem, the next step is to attend confidential mediation assistance from the Ministry of Business, Innovation and Employment.

(f) Step 6 – Employment Relations Authority: If the problem is not resolved at mediation the Pilot may elect to submit the problem to the Employment Relations Authority, which may proceed to a more formal hearing. The decision of the Authority is final and binding unless it is appealed to the Employment Court.

36.8 Time Limit:

Note that if the problem relates to a personal grievance the grievance must be submitted within the period of 90 days beginning with the date on which the action alleged to amount to a personal grievance occurred or has come to the notice of the Pilot (whichever is the latter) so as to enable the Company to remedy the grievance rapidly and as near as possible to the point of origin.

If the grievance is not submitted within the 90 day period, the Company is not obliged to consider the Pilot’s grievance unless the Employment Authority grants the Pilot leave to submit the personal grievance after the expiration of that period.

36.9 Discrimination and Harassment:

If the problem relates to discrimination or sexual harassment, services available for the resolution of the problem include either application to the Authority or a complaint under the Human Rights Act 1993 (as amended), but not both.

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37 EMPLOYMENT SECURITY

37.1 Commitment to maximise job security for pilots.

(a) The Company will work with the Pilots and the CMG to provide job security enabled by the efficiencies and flexibilities in the Agreement. Both the Company and the CMG will do everything they reasonably can to ensure that those pilots who want to remain with the Company can do so.

(b) In doing so the Company will not outsource its Pilot labour and/or existing New Zealand based flying to any other company or entity within New Zealand or overseas and will maximise the circumstances in which New Zealand based flying is performed by New Zealand based Pilots covered by this agreement.

(c) In making these commitments, the parties recognise that they are not intended to interfere with the operation of the employment arrangements applicable to Virgin Australia Group’s Australian based pilot workforce, nor prevent Virgin Australia Group from entering into alliance or partnership style arrangements with other airlines or engaging other airlines to supplement capacity when operationally required, for a finite period.

(d) For the purpose of this clause, the phrase New Zealand based flying means all flying to and from New Zealand including Trans-‐Tasman flying.

(e) Involuntary redundancies can only occur if there are an insufficient number of Pilots willing to take a voluntary redundancy.

(f) NZ pilots cannot be required to give up their position or base in the NZ operation because of redundancies in the Australian short or long haul operations.

(g) The Company will consult in respect of the application of the above commitments via the CMG.

PART 4 – REMUNERATION

38 REMUNERATION PACKAGE

38.1 Pilots’ remuneration package will comprise the following:

(a) Annual base salary;

(b) Superannuation;

(c) Additional allowances for Training Captains (refer clause 39.3) and Flight Examiners (refer clause 39.4);

(d) Additional allowances for Ground Instructors (refer clause 39.5);

(e) Additional allowances for Safety Investigators;

(f) Payments for working overtime;

(g) Payments for working on designated days off and annual leave days; and

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(h) Any other taxable allowance.

39 ANNUAL BASE SALARY

39.1 Pilots shall be paid in accordance with the following table:

Level 2013 (Year 1) 2014 (Year 2) 2015 (Year 3) Captain Level 1 $153,506 $161,181 $172,464 Captain Level 2 $161,318 $169,384 $181,241 Captain Level 3 $169,131 $177,588 $190,019 First Officer Level 1 $90,267 $94,780 $101,415 First Officer Level 2 $97,446 $102,318 $109,480 First Officer Level 3 $104,730 $109,967 $117,664

3% 5% 7%

39.2 The above base salary table will work as follows:

(a) Captains’ and First Officer rates and increases are as follows:

(i) The Year 1 rates apply from the beginning of the first full pay period following ratification of this Agreement.

(ii) The rate increases for subsequent years apply from the beginning of the first full pay period at the anniversary of the Ratification date.

(iii) In addition to the salary increases under clause 39.2(a)(ii), on the anniversary date of a pilot successfully completing his upgrade training and checking to line as a Captain his base salary will be increased to the next level.

(iv) First Officers will progress through the Levels at the beginning of the first full pay period after each anniversary of the time they commenced work as a First Officer.

(b) New Pilots employed as First Officers will be paid the First Officer Level 1 rate from the first day of induction as a First Officer.

(c) Pilots’ employed as Captains will be paid as Captain’s Level 1 rate soon as they have completed upgrade training and have been cleared to line.

(d) New Pilots employed as direct entry Captain will be paid the Captain Level 1 rate from the first day of induction as a direct entry Captain.

(e) Part-‐time Pilots and Pilots employed on flexible work arrangements will be paid pro-‐rata the full time annual base salary rates.

39.3 Training Captains will be paid an amount which is 12% higher than their annual base salary stipulated in clause 39.1 This allowance will be paid for all time spent performing training duties and during periods of annual leave and sick leave provided the Pilot was engaged in such functions for two (2) months prior to such leave being taken. Training Captain appointments will be for an initial 12 month period, terminable on two (2) months’ notice. Training Captain appointments must be recorded in writing.

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39.4 Flight Examiners will be paid an amount which is 16% higher than their annual base salary stipulated in clause 39.1. This allowance will be paid for all time spent performing Flight Examiner duties and during periods of annual leave and sick leave provided the Pilot was engaged in such functions for two (2) months prior to such leave being taken. Flight Examiner appointments will be for an initial 24 month period, terminable on two (2) months’ notice. Flight Examiner appointments must be recorded in writing.

39.5 When a Pilot facilitates training as a ground instructor he/she will be paid an allowance in accordance with clause 49.1. Ground Instructor appointments must be recorded in writing.

39.6 In the event the Company or Virgin Australia proposes to operate aircraft types for which no pay rate exists in this Agreement, the Parties shall negotiate the pay rate which shall apply.

40 WHAT ANNUAL BASE SALARY COVERS

40.1 Annual base salaries will comply with the Holidays Act and have been calculated to remunerate Pilots:

(a) for all work, including all flying and non-‐flying work (for example, time spent performing ground duties, training, on standby/reserve, blank days and positioning) up to the overtime threshold flight hours per 28 day roster period as detailed in clause 43.3;

(b) for all leave;

(c) for working shifts and on weekends (payment for working on public holiday is dealt with in clause 53);

(d) For all penalties, loadings and allowances and for all other payments except for:

(i) additional allowances for Training Captains (pursuant to clause 39.3);

(ii) additional payments for Flight Examiners (pursuant to clause 39.4);

(iii) overtime payments (pursuant to clause 43);

(iv) payments for working on designated days off and annual leave days (pursuant to clause 44).

41 PAYMENT OF REMUNERATION

41.1 A Pilot’s base Salary along with applicable allowances and other payments will be paid fortnightly via electronic transfer into a New Zealand bank account nominated by the Pilot.

41.2 No deductions shall be made from the Pilot's remuneration except:

(a) as required by law; or

(b) made with the prior consent in writing of the Pilot; or

(c) in the case of overpayments resulting from time lost through the Pilot’s sickness (other than as provided for in this Agreement) accident, unauthorised absence; or

(d) otherwise provided in this Agreement.

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41.3 Should the Company overpay a Pilot salary, an entitlement or allowance during their employment, repayment is to be made as soon as practicable. Any repayment arrangements will take into account the circumstances of the overpayment including the Pilot’s personal circumstances.

42 SUPERANNUATION

42.1 The Company will make superannuation contributions at the greater of 4% of the Pilots' Superannuation Salary or at the level required under the relevant legislative Act, currently the Kiwi Saver Act 2006, into a Pilot’s Kiwi Saver account (unless the Pilot has opted out or is on a contribution holiday), or to any other registered superannuation scheme nominated by the Pilot in accordance with Company or Virgin Group policy.

42.2 For the purposes of this clause, “Superannuation Salary” means the remuneration paid to a Pilot in respect of or by way of annual base salary plus any overtime payments, including any additional allowances payable under clauses 39.3 and 39.4 and 39.5. The Company will have no obligation to make superannuation contributions in respect of other forms of remuneration (e.g. bonus or incentive payments), allowances (e.g. meal and incidental allowances and cancelled accommodation allowance) or reimbursements (e.g. unscheduled overnight reimbursement) paid to Pilots during the life of this Agreement.

43 OVERTIME

43.1 The overtime system set out below will start at the beginning of the first roster period after commencement of this Agreement. Where a Pilot flies more than the overtime threshold per 28 day roster period, they will be entitled to overtime at the hourly rate for every flight hour or pro rata flight hour.

43.2 For the purposes of calculating overtime payments, Pilots will initially be credited with actual flight time. This will be changed to the greater of actual flight time or scheduled flight time as soon as practicable (i.e. after the requisite systems changes have been made).

43.3 For the purposes of this clause:

(a) Flight time means any time in which a Pilot operates in an aircraft as a member of its operating flight crew. It is the total time from the moment the aircraft first moves for the purpose of flight until the moment it comes to rest at the end of the flight, including all associated push back, taxiing and subsequent holding time.

(b) Hourly rate means the Pilot’s annual base salary divided by 834, and pro-‐rated for a part-‐time pilot (e.g. for PT50 the hourly rate is the Pilot’s annual base salary divided by 417).

(c) Part-‐time Pilots overtime threshold; the overtime trigger is pro-‐rata to the percentage of full-‐time e.g. Overtime trigger of 71hrs means for a 50% part-‐time position the overtime trigger is 35.5hrs. The overtime rate is applied for every hour over 35.5 hours as per the rate in clause 43.3(b).

(d) Overtime threshold means 71 flight hours in any 28 day roster period. The following applies to the overtime threshold:

• The overtime threshold for each roster period will be reduced by 4.5 hours per duty where the Pilot is rostered for any of the following (as instructor or student):

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(i) All simulator duty;

(ii) Safety and Emergency Procedures Training;

(iii) Non-‐Technical Skills Training;

(iv) Security Training; and

(v) CMG meetings, FRMS meetings, induction courses (as a facilitator/instructor) as well as any other rostered administrative duties agreed by the CMG.

• To avoid doubt the overtime threshold will only be reduced for the day upon which the meetings occur, and will not be reduced for any travel, preparation or other work associated with the meetings.

• Pilots will also receive a credit of 4.5 hours per year for all online/electronic training courses they perform each year. This credit will be given to each pilot once each 12 month period, beginning from the commencement of the Agreement.

• Where a Pilot takes approved annual or parental leave in a roster period, the overtime threshold will be pro-‐rated in accordance with the following:

Absence Days Overtime Threshold

0 71 1 68.5 2 66 3 63.4 4 60.8 5 58.3 6 55.8 7 53.3 8 50.7 9 48.2 10 45.7 11 43.1 12 40.5 13 38.1 14 35.5 15 33 16 30.5 17 27.9 18 25.3 19 22.8 20 20.3 21 17.8 22 15.2 23 12.7 24 10.4 25 7.6

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Absence Days Overtime Threshold 26 5 27 2.6 28 0

43.4 The Company, within two (2) roster periods of ratification, will commit to balance rostered flight hours (at roster publication) with an appropriate buffer of hours (+/-‐ 5 hours of the average per roster over a period of three (3) roster periods ). The CMG will review the operation of this clause 43.4 within 6 months of ratification including its interaction with the effective operation of the Preferential Bidding System.

44 WORKING ON DESIGNATED DAYS OFF AND ANNUAL LEAVE DAYS

44.1 Subject to clause 44, where a Pilot agrees to and performs work on a DDO or annual leave day, the Pilot is entitled to receive payment as follows:

(a) Flight Examiners, Training Captains and Captains – $1,000 per day;

(b) First Officers – $650 per day.

These payments will be increased by 3% from the beginning of the first full pay period after 1 November 2014 and in 1 November 2015.

44.2 Pilots are only entitled to one payment under this clause per sign on.

44.3 Where there is an extension of a rostered duty into a DDO then a payment will only be made if the duty encroaches by one (1) hour or more.

44.4 Pilots who perform work on a DDO are not entitled to a substitute DDO in addition to the payment detailed in 44.1 above.

44.5 Pilots who perform work on an annual leave day are entitled to a re-‐credit of the annual leave day worked in addition to the payment detailed in 44.1 above.

44.6 Where a Pilot is called to perform work on a DDO or annual leave day and that work is cancelled after the Pilot has left their home/the place they were contacted but before they sign on, the pilot will be paid $400.

45 ALLOWANCES

45.1 Duty Travel Allowance

45.1 This allowance is to reimburse Pilots for all expenses incurred in the course of and arising out of their employment during a duty away from Home Base. Such expenses include, but are not limited to, meals, laundering and telephone costs. This allowance will be paid in arrears.

45.2 Pilots will be paid a duty travel allowance per hour (or part hour thereof) for elapsed time from sign-‐on to sign-‐off at Home Base.

45.3 The Year 1 rates apply from the beginning of the first full pay period following ratification of this Agreement. The rate increases for subsequent years apply from the beginning of the first full pay period at the anniversary of the ratification date.

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45.4 Pilots will be paid a Duty Travel Allowance of $NZD5.59 for year 1, $NZD5.76 for Year 2 and $NZD5.93 for Year 3.

45.5 Pilots Under Initial Training

(a) Whilst undertaking their initial training, Pilots will be accommodated in self-‐contained facilities wherever practicable. Whilst under initial training, Pilots will be paid a daily allowance of NZD$50 for each day Pilots are required to be away from their Home Base.

(b) This allowance is in lieu of the Duty Travel Allowance at clause 45.1 and is to reimburse Pilots for all expenses incurred in the course of and arising out of their employment while away from Home Base. Such expenses include, but are not limited to, groceries, laundering and telephone costs.

46 ACCOMMODATION AND GROUND TRANSPORT

46.1 The Company will provide accommodation and transport Pilots to/from the relevant airport and the Company provided accommodation where Pilots are required to overnight away from Home Base for work related purposes.

46.2 The standard of accommodation provided will be appropriate having regard to the need to provide Pilots with safe and comfortable rest.

46.3 For the purposes of this clause, a hotel will satisfy these criteria if it has been assessed as appropriate by the Company Group Security as conducive to quality sleep and ideally includes the following:

(a) 24 hour security;*

(b) 24 hour hot food room service;

(c) Ability to control room temperature;*

(d) Sufficiently quiet;*

(e) Ability to control room light (block out curtains);*

(f) Fridge and safe provided in room;

(g) Close proximity to local transport and facilities;

(h) In room internet access;

(i) Access to fitness facilities (if not in the hotel, then somewhere close by);

Note: * are mandatory items.

46.4 The Company will consult with NZALPA via the CMG in respect to any changes to accommodation or any new accommodation.

46.5 Pilots are entitled to hotel accommodation if they are rostered to spend more than four (4) hours without flight duty during a turnaround or where delays caused by misconnections or breakdowns during the course of a flight duty are known to or can reasonably be expected to exceed four (4) hours.

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46.6 The Company will provide Pilots with air-‐conditioned transport to and from any hotel accommodation.

47 SUSTENANCE AND BEVERAGES DURING FLIGHT

47.1 Pilots who operate or position in the Company aircraft at a time that touches the following time periods will be provided with access to adequate sustenance and beverages:

Time period 0600-‐0800 1200-‐1400 1800-‐2000

All times are referenced by scheduled departure time.

47.2 Pilots will also have access to adequate sustenance and beverages for flight with a scheduled flight time of more than three (3) hours and/or where a flight is scheduled to depart between 2300 and 0300.

47.3 The Company will endeavour to provide sustenance and beverages to Pilots who position in non-‐Company aircraft.

48 CANCELLED ACCOMMODATION ALLOWANCE

48.1 The Company will pay Pilots a cancelled accommodation allowance of $80 in the following circumstances:

(a) Pilots are required to overnight away from Home Base for work related purposes;

(b) That overnight will be in Australia, New Zealand or any overseas port;

(c) The Pilots advise the Company at least 36 hours for New Zealand and Australian locations, and at least 48 hours for all other locations, in advance of their scheduled hotel check-‐in time that they do not intend to stay at the Company provided accommodation; and

(d) Pilots do not in fact stay in the Company provided accommodation.

48.2 The above allowance will be paid fortnightly in arrears. Payment will be made electronically into each Pilot’s nominated bank account.

48.3 Where a Pilot elects not to use the Company provided accommodation, they will be responsible for providing their own transport from and to the airport to meet the required sign-‐on times and must remain contactable.

49 AD HOC TRAINING WORK ALLOWANCE

49.1 Where a Pilot (excluding Training Captains and Flight Examiners) performs ad hoc training work, he/she shall be paid an allowance of $412.00. This is a daily payment for rostered facilitation of the ad hoc training work.

49.2 The allowance will be increased by 3% from the beginning of the first full pay period after 1 November 2014 and 1 November 2015.

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50 ASSOCIATION FEES

50.1 The Company shall deduct, from the fortnightly remuneration of every Pilot who requests such deduction, an amount to be specified in percentage terms by NZALPA and remit the same, without further deduction, to NZALPA fortnightly in payment of that Pilot's NZALPA subscription.

51 REIMBURSEMENT OF CLAIMS

51.1 The Company will reimburse Pilots for all reasonable expenses incurred by Pilots in the course of their employment.

51.2 The Company will reimburse Pilots within 21 days after the Pilot submits a valid and complete expense claim.

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PART 5 – LEAVE

52 ANNUAL LEAVE

52.1 Accruing Annual Leave

(a) All full time and part-‐time Pilots will accrue five (5) weeks annual leave (a week is five (5) annual leave days and two (2) DDOs) for each completed year of service. Annual leave will accrue in accordance with the Holidays Act. Payment for part-‐time Pilots for annual leave is on a pro-‐rata basis.

(b) Annual leave will not accrue when Pilots are on unpaid leave for a period exceeding one (1) week.

(c) Annual leave is cumulative and any accrued annual leave will be paid out on termination of employment.

52.2 Taking Annual Leave

(a) Pilots may request to take annual leave in accordance with the established systems and processes and applicable law.

(b) Annual leave should generally be taken in the year it falls due to ensure appropriate rest and recreation. Pilots may roll over one (1) week’s annual leave each year up to a maximum of 6 week’s total accrual. Should a Pilot have individual circumstances requiring a longer period of leave, the Pilot should discuss this with their Senior Base Pilot.

(c) The Company may direct a Pilot to take accumulated annual leave in excess of 6 weeks at its discretion. Unless otherwise agreed, a Pilot will not be directed to take leave for periods of less than one (1) week.

(d) Once allocated, annual leave will not be changed or cancelled without a Pilot’s agreement.

(e) Pilots may elect to swap annual leave with another Pilot in accordance with the established systems and processes.

(f) Payment for annual leave will be made in the pay period that relates to the period in which the leave is taken.

(g) Pilots are encouraged to use their annual leave to ensure they have sufficient rest and time with family and friends. To this end, the Company will provide sufficient leave slots in the annual ballot to allow all Pilots the opportunity to bid for and take their annual leave entitlement.

(h) Pilots will have the opportunity to bid for leave at various times throughout the year. Any changes to bidding arrangements can only be changed by agreement of the CMG.

(i) Where a Pilot changes rank, base or equipment type, the Pilot may be required to cancel any leave pre-‐approved. The Company will grant the Pilot the same leave period in the new status if it is available. If the same leave period is not available, the Pilot will not be disadvantaged in the bidding system and the Company will advise the Pilot of alternative leave periods available for bid.

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(j) Pilots who reach the annual flight limit (1000 Hours) will not be required to take annual leave. Pilots will be paid their annual fixed remuneration (plus additional allowances for Flight Examiners and Training Captains where applicable) for the period that they are unable to fly. Such action will not prohibit the Company from using the Pilot for alternative ground duties.

(k) Where a Pilot is required to forfeit the pre-‐approved leave, the leave entitlement shall be re-‐credited to the Pilot’s accrued leave balance.

(l) Other than for periods of annual leave of less than one week, Pilots returning from annual leave will not be rostered to commence duty any earlier than 0800 local time on the first day immediately following the period of annual leave.

52.3 Illness when on Leave

(a) If a Pilot is ill for a period of at least four (4) consecutive days during annual leave, the Company will count that period of illness as sick leave provided:

(i) the Pilot informs the Company that he/she is ill as soon as practicable;

(ii) the Pilot has enough credited sick leave; and

(iii) supporting medical documentation is provided.

52.4 Working during periods of Leave

(a) Generally speaking, Pilots must not be asked to perform work during periods of annual leave. Pilots cannot be required to perform work during a period of annual leave unless they agree.

53 PUBLIC HOLIDAYS

53.1 Pilots agree they may be required by the Company to work on a public holiday.

53.2 Where a Pilot is required to work on a public holiday the Pilot shall be paid 1.5 times their relevant daily pay for all hours the Pilot worked.

53.3 Where Pilots do work on a public holiday which would otherwise be a normal working day for Pilots, Pilots will also be entitled to a whole day off in lieu which will be paid at their relevant daily pay for the day taken. This day should be taken at a time to be agreed between Pilots and their senior base Pilot or as determined in accordance with the Holidays Act.

53.4 If a Pilot does not work on a public holiday and the day would otherwise be a working day for the Pilot, the Pilot will be paid their relevant daily pay for that day.

54 SICK LEAVE

54.1 Paid Sick Leave

(a) Sick leave can be accessed in the following circumstances:

(i) If a personal illness or injury results in a Pilot not being fit for work; or

(ii) If a Pilot needs to provide care or support to their spouse or partner, or where someone else who depends on the Pilot for care is ill or injured or has suffered an unexpected emergency.

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(b) Full time Pilots will accrue 10 days of sick leave for each completed year of service. Part-‐time Pilots will be entitled to sick leave on a pro rata basis to a minimum entitlement of five (5) days for each completed year of service.

(c) There is no cap on the accrual of sick leave; however it will not be paid out on termination of a Pilot’s employment.

(d) Where a Pilot’s loss of income through illness or injury is covered wholly or partially by ACC, the Company will allow the Pilot to access their sick leave accrual to top up their income to what the Pilot would normally receive on sick leave, provided the Pilot maintains a minimum of one year’s accrual.

54.2 Notice for Accessing Sick Leave

(a) Pilots are required to notify the Company Operations Control Centre as soon as practicable that they are accessing sick leave, ideally with at least two hours’ notice before their sign on time to enable alternative arrangements to cover their duty. Pilots must advise the period in which sick leave is required. If for any reason this period changes, Pilots must advise the change.

(b) Pilots are also required to notify their Senior Base Pilot during normal business hours.

(c) Where a Pilot has prior knowledge of the need to be absent, earlier notification is required.

(d) When Pilots are fit to return to work they must contact the Company Operations Control Centre as soon as possible but not later than 20:00 hours (local time) prior to their already notified return date. Pilots will be allocated duties at this time.

54.3 Proof of Absence

(a) The Company is able to ask for proof of sickness or injury at any time once an employee takes sick leave. Special rules apply if the company requests proof within three consecutive calendar days of the Pilot taking sick leave. The Company must inform the employee as early as possible that the proof is required, and will pay the reasonable expenses to do so. This means a medical certificate or another form of supporting documentation authorised by the Company.

(b) When requested, other than where there are unforeseen circumstances that do not allow it, a Pilot will provide the medical certificate or another form of supporting documentation upon their first day back at work.

(c) Clause 53.3 is to be read and applied subject to the Holidays Act.

54.4 Extended Sick Leave

(a) If a Pilot has exhausted all of their accrued sick leave and is still unable to attend work due to an illness or injury, or has an obligation to care for someone, the Pilot will need to discuss this with their senior base Pilot as soon as possible.

(b) The Senior Base Pilot will consider what arrangements may be put in place to assist the Pilot, which may include, at the discretion of the Company, additional paid or unpaid sick leave.

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54.5 Mid Duty Illness

(a) If a Pilot becomes ill or injured whilst performing work away from Home Base and is unable to perform further duties, the Pilot may be directed to attend a doctor or medical facility nominated by the Company.

(b) Where a Pilot requires medical services or hospitalisation away from Home Base, the Company will do everything it reasonably can to provide treatment for Pilots and return Pilots to their Home Base as soon as possible, subject to clearance to travel being provided by a registered medical practitioner.

(c) In the case of mid duty illness, the Pilot will be deducted 1 day of Sick Leave where 5 hours or less of Duty has been completed at the time of mid duty illness or half a day of sick leave if more than 5 hours of Duty has been completed.

55 BEREAVEMENT LEAVE

55.1 Pilots may access paid bereavement leave in accordance with the Holidays Act.

55.2 Pilots will be entitled to three days paid leave on the death of their spouse or partner, parent, brother or sister, child, grandparent, grandchild, or spouse’s or partner’s parent.

55.3 A maximum of one’s day pay on the death of any other person if the Company accepts the Pilot has suffered bereavement.

55.4 Where Pilots feel the need to take additional leave as the result of bereavement, the Pilot, or someone on their behalf, should discuss the circumstances with the Company and additional leave, paid or unpaid, may be granted at the Company’s discretion to meet the circumstances.

55.5 If a Pilot is absent from work due to bereavement the Pilot must contact their senior base Pilot during normal business hours as soon as practicable. Pilots must also contact the Company Operations Control Centre as soon as practicable and ideally no later than 2 hours prior to their rostered duty start time on any day the Pilot will be absent from work due to bereavement.

56 PARENTAL LEAVE

56.1 Pilots are entitled to take parental leave in accordance with the Company’s Parental Leave Policy and the Holidays Act.

57 LEAVE WITHOUT PAY

57.1 Pilots may apply for a period of leave without pay from their role. Any application must be in writing to their senior base Pilot.

57.2 The provision of any leave without pay will be at the Company’s discretion.

57.3 The period of the absence will not count as service.

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58 URTI LEAVE

58.1 Full time Pilots are entitled to 6 days paid URTI leave each year for use if they have an upper respiratory tract infection. Part-‐time Pilots or Pilots employed on flexible work arrangements will receive a pro-‐rata entitlement.

58.2 URTI leave is in addition to a Pilot's sick leave entitlement.

58.3 Pilots are required to notify the Company Operations Control Centre as soon as practicable that they are accessing URTI leave, ideally with at least two hours’ notice before their sign on time to enable the Company to make alternative arrangements to cover the Pilot’s roster. Pilots must advise the period in which URTI leave is required. If for any reason this period changes, Pilots must advise the change.

58.4 Pilots are required to submit leave application forms for URTI leave. Although medical certificates in support of URTI leave applications are not necessary in the ordinary course, the Company retains the right to require Pilots to provide these additional documents.

58.5 If a Pilot suffers an URTI whilst performing work away from Home Base, the Company will do everything it reasonably can to provide treatment for the Pilot and return them to Home Base as soon as possible.

58.6 URTI leave does not accumulate from year to year and is not paid out on termination of employment.

59 UNAUTHORISED LEAVE

59.1 If a Pilot is absent from duty without approval in accordance with this Agreement, the Pilot will not be paid for the period of absence.

60 EXTENDED PAID LEAVE

60.1 Where a Pilot has exhausted all of their leave entitlements, the following factors will be taken into account by the Company when considering whether to provide ongoing paid leave to a Pilot:

(a) Expert medical or other health advice as to the likelihood of the Pilot being able to return to full, normal flying duties, including likely duration of the extended absence; and

(b) Existing personal circumstances, including details of access to any loss of licence or income protection policy or other assistance (e.g. government assistance) that may be available.

60.2 Each case will be considered on its merits. Where the Company decides that extended paid leave will not be made available, the Company will meet with the Pilot and explain why it was not granted. The Pilot is entitled to have a representative attend that meeting.

61 CONTINUITY OF SERVICE AND LEAVE ACCRUALS

61.1 If a Pilot transfers their employment from another company in the Virgin Group, the Company will recognise their leave accruals with that other Virgin Company for continuity of service purposes.

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PART 6 – INSURANCES AND INDEMNITY

62 INSURANCE

62.1 Aircraft Accident Insurance

(a) At its own cost, the Company will provide Pilots with death-‐in-‐service insurance of a maximum of $300,000, provided that their death occurs whilst flying as a crew member, or as a passenger on an aircraft, whilst carrying out duties on behalf of the Company. This benefit is inclusive of any carrier liability insurance entitlements.

62.2 Loss of Licence Insurance

(a) At its cost, the Company will provide Pilots with loss of licence insurance in accordance with the Company Policy.

(b) Pilots may elect to take out their own loss of licence insurance and receive a reimbursement in accordance with clause 62.2.3 from the Company, in lieu of the loss of licence insurance provided under 62.2.1. Pilots who wish to take out their own loss of licence insurance may: (i) make a claim for reimbursement from the Company in accordance with clause 50 of

this Agreement; or (ii) elect for the amount of the reimbursement, to be paid directly by the Company to the

relevant insurer in accordance with any bulk billing arrangements agreed by the Company and NZALPA.

(c) The maximum reimbursement that may be claimed per annum is $2,600 or 1.5% of the Pilot's annual base salary, whichever is the higher.

62.3 Travel and Personal Effects Insurance

(a) At its cost and in accordance with the Virgin Group corporate travel policy, the Company will provide Pilots with travel insurance, which includes cover for emergency medical and dental cover, security assistance and medical evacuation.

63 INDEMNITY

63.1 The Company will, to the extent permitted by law, indemnify and release Pilots from all claims and demands made against them (whether made during or after the period of the Pilot’s employment) by any person including (but not limited to) the Company, other Pilots, guests and or their legal personal representatives:

(a) where the claim or demand is made as a result of injury or loss to a person or property that is caused or contributed to by a Pilot (whether by negligence or any other act or omission) in performing their duties in the course of employment;

(b) except where such injury or loss was caused wilfully by the Pilot, unless the injury or loss was beyond the Pilot’s control.

63.2 In addition, in applying this clause, the Company will:

(a) to the extent permitted by law, provide legal counsel and defend Pilots and their estates in any legal actions arising in connection with the performance of the Pilot’s

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duties, unless the Pilot or his estate requests otherwise, and indemnify them and hold them harmless from any judgment rendered there under; and

(b) when required to act as a witness for another Pilot, give them a reasonable period free of duty to prepare and appear as a witness, subject to company operational requirements. Pilots will continue to receive base salary during this time. Where a Pilot is required to travel away from their Home Base to attend hearings, they will also be provided with travel, accommodation and allowances.

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PART 7 – OPERATIONS

64 FATIGUE RISK MANAGEMENT SYSTEM (FRMS)

64.1 The Company FRMS will continue to apply to Pilots' employment unless varied in accordance with this Agreement. The CMG will utilise the NZALPA document and the current Company FRMS as a basis for discussion and refinement of the FRMS system.

64.2 Within two (2) months of the ratification of the Agreement, the Parties will convene a CMG to review the current FRMS and jointly develop appropriate system improvements to manage fatigue while recognising appropriately the need for reasonable and predictable Pilot lifestyle and safe and productive operations. This review will consider the amendments to the FRMS suggested by NZALPA related to early starts, sign on time post consecutive DDOs. split day operations, back of clock (night) duty, the definition of acclimatised, reserve line and its implications for Queenstown operations and reserve duty as a first priority.

64.3 Changes to the FRMS related work rules applying to Pilots can only be made by the Company following prior consultation with the Pilot representatives on the CMG. Implementation of any changes to the FRMS will also, where relevant, be conditional upon approval by the CAA.

65 ROSTERS

65.1 The Company will use its best endeavours to make rosters available to Pilots at least 14 days but, in any event shall make rosters available not less than 10 days prior to the next Roster Period.

65.2 The Company commits to the implementation of a trip swap system following consultation with the CMG (refer to clause 68).

65.3 Roster requests must be submitted in accordance with the established systems and processes of the Company. The Company will make every effort to accommodate roster requests. However, subject to the requirements of this Agreement including clause 68 -‐ 28 Day Reserve Line, the setting of days and hours of work is entirely at the Company’s discretion.

65.4 Pilots will not be rostered for a combination of simulator and aircraft flying within a single duty period unless mutually agreed.

66 HOURS OF WORK

66.1 The Company operates in a 24 hour a day, 7 day a week industry. The nature of the airline industry is such that a Pilot’s hours of work will fluctuate from week to week depending on their roster. Pilots are required to work the hours that are necessary to perform their role and must be ready, willing and able to work within a 24/7 roster, including at various times of the day and night, and on any day or combination of days, including Saturdays, Sundays and Public Holidays in accordance with the provisions of this Agreement.

66.2 In accordance with the provisions of the applicable Flight and Duty Scheme, Pilots may be required to perform work at times beyond those that are rostered. This will not include the requirement to work on DDOs and annual leave.

66.3 Pilots will not be rostered, nor shall they work more than the flight hour limitations set out below:

(a) 1000 flight hours in any 365 consecutive days;

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(b) 250 flight hours in any 84 consecutive days;

(c) 100 flight hours in any 28 consecutive days.

66.4 Pilots will not be rostered, nor shall they work more than the duty hour limitations set out below:

(a) 55 duty hours in any 7 consecutive days;

(b) 95 duty hours in any 14 consecutive days;

(c) 190 duty hours in any 28 consecutive days.

66.5 Pilots will not be rostered to work more than 6 consecutive days.

66.6 Reserve Duty:

(a) When a Pilot is rostered a reserve duty the Pilot cannot be contacted during the mandatory rest period immediately preceding the reserve duty. Advance notification via passive communication such as text shall not be regarded as “contact” in this clause or confirmation of duty change.

(b) Subject to this Agreement, Pilots who are rostered a Reserve Duty can be required to sign on at any time during the Reserve Duty if they are contacted before the Reserve Duty starts.

(c) Once a reserve duty has started, Pilots can be required to sign on within 90 minutes of being contacted and can only be called out for a duty commencing before the end of the reserve period. The total elapsed time from commencement of the reserve duty to the conclusion of any call out duty shall not exceed 18 hours.

67 DESIGNATED DAYS OFF (DDO)

67.1 Pilots shall be rostered a minimum of 10 DDOs in each 28 day roster from the first full roster period after ratification of this Agreement.

67.2 Pilots’ DDOs shall be rostered in groups of not less than two consecutive days, unless by mutual agreement between the Company and the Pilot (e.g. required to accommodate a Pilot’s roster request).

67.3 During periods of unexpected or exceptionally high Pilot utilisation the Company may, with the prior written agreement of the CMG, reduce the number of rostered DDOs for some, or all, pilots in a specific 28 day roster to 9. This may be done in a maximum of three 28 day rosters in any calendar year. DDOs foregone in such circumstances shall be rostered at the earliest possible opportunity in a subsequent roster, but not later than three roster periods after they were foregone. These days will be assigned by mutual agreement between the Company and the Pilot.

67.4 A DDO, once rostered, cannot be changed without the agreement of the Pilot concerned.

67.5 Although there may be occasions when Pilots are asked to work on a rostered DDO they are not required to do so. Where a Pilot agrees to work on a DDO they shall receive the payment specified in clause 44.

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68 28 DAY RESERVE LINE

68.1 Following ratification of this Agreement, the CMG will develop the 28 day rostered reserve line. This work will commence within one (1) month of ratification. Implementation shall not be unduly delayed by the Company, and shall be completed within six (6) months of commencement. The use of 28 day rostered reserve lines will operate for six (6) roster periods and will continue while being reviewed by the CMG which will conclude no later than two (2) roster periods after the commencement of the review.

68.2 28 Day reserve lines rosters may contain lead in flying that extends from previous roster as well as ground duties, simulator duties, line checks, recurrency flying and leave.

68.3 Similarly, a flying roster can contain lead in reserve duties that extend from the previous roster. Rosters that include these duties are not regarded as mixed duty rosters.

68.4 Should a pilot be removed from a live roster duty due reasons outside the control of the Company (i.e. due sickness, fatigue or disruption) then that pilot can be reassigned a reserve duty within the original rostered duty period.

68.5 The CMG will discuss how the rostering of reserve lines will be equalised.

68.6 Agreement to continue 28 day rostered reserve lines cannot be unreasonably withheld by the Company.

69 Preferential Bidding System (PBS)

69.1 The Company will consult with the CMG with respect to the PBS . The Company will ensure Pilots have access to training about the PBS and the strategies Pilots can use to maximise their prospects for successful bids. This training will be contextualised, and may be, but not limited to, one-‐on-‐one or small group training provided by senior base Pilots, flight crew rostering staff and/or suitably trained Pilots or computer based training.

69.2 Individual bid satisfaction scores are available to Pilots on request.

69.3 On request, the Company will provide the CMG with:

(a) information about the global satisfaction levels for all resource groups arising from Pilots’ use of the PBS; and

(b) the current rules (hard and soft) used in the roster build system and any buffers built into that system.

69.4 The CMG will set notional satisfaction scores for part-‐time workers for the purposes of the PBS and will review these from time-‐to-‐time based on Pilot feedback.

70 OPEN TIME SYSTEM

70.1 The Company will consult with NZALPA to improve the current open time system.

70.2 Ideally, improvement of the current system will involve automation of the open time system with the following functionality:

(a) The ability to view all trips in open time; and

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(b) The ability to bid for and be allocated those trips.

71 TRIP SWAP SYSTEM

71.1 The Company will consult with the CMG about the implementation of an improved trip swap system.

71.2 Ideally, implementation will involve an automated trip swap system with the following functionality:

(a) The ability to opt in and out of the system;

(b) For those Pilots who have opted in, the ability to view rosters of other Pilots in the same bid group and then request and be allocated trip swaps.

71.3 As a first step, the Company agrees to implement a new or improved manual trip swap system. This will be implemented within 12 months of the commencement of this Agreement.

72 RECORDS

72.1 The Company will maintain a current record of flying hours and duty hours carried out by all of its Pilots.

72.2 It will be the responsibility of the Company and the Pilot to monitor the flight and duty time limits and advise immediately if it appears that these limits could be exceeded. In these circumstances it will be the Company's responsibility to arrange alternative scheduling should it appear that flight or duty times would otherwise be exceeded.

72.3 The Company is to ensure that its Pilots duty and flight time records are available on demand to the Pilots and authorised persons.

73 PERSONNEL FILE

73.1 Pilots are able to view their personnel file and make copies or notes of the contents.

73.2 Pilots have the right to seek answers regarding documents on their personnel file. If a Pilot believes that the documents or assertions contained in their personnel file have not been brought to their notice or contain unverified adverse comments or have been placed on file erroneously, the Pilot has the right to seek review.

73.3 Any review of a Pilot’s personnel file will be in accordance with the Disputes Settlement Process.

73.4 For the purposes of this clause, a Pilot’s personnel file means not only their personnel file held by the People Team (or equivalent) but also any other record that the Company seeks to rely on in respect of any performance or disciplinary matter.

74 UNIFORMS

74.1 The Company will provide Pilots with a uniform which must be worn at all times when on duty in accordance with the Company's grooming standards.

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74.2 A Pilot’s personal appearance must be of a high standard at all times and support the Company’s professional image and reputation.

74.3 Pilots must, at their own expense, replace any uniform items if replacement becomes necessary as a result of conditions other than fair wear and tear and/or damage during the course of duty.

74.4 Should any item of uniform be lost or stolen, it must be reported immediately. In the case of theft, it must be reported to the police and a copy of the police report must be provided to the Company.

75 CAR PARKING

75.1 The Company will provide car parking facilities at or near the airport which is the Pilot’s Home Base for Pilots to use when Pilots are rostered for duty.

75.2 Where it is necessary, the Company will arrange transport free of cost between the terminal and the car park.

76 UNSCHEDULED OVERNIGHT REIMBURSEMENT

76.1 Pilots are entitled to be reimbursed up to $200 for an unscheduled overnight following the provision of relevant supporting documentation (including receipts).

76.2 An overnight is unscheduled if the Company does not make all reasonable efforts to bring the requirement to overnight to the Pilot’s attention at least two (2) hours before sign on for the relevant duty.

77 SPECIAL SCHEDULING AGREEMENTS (SSAs)

77.1 Either Party may call for any schedule to be examined and, notwithstanding clause 5 and the limitations contained in Part 7, the CMG may agree in writing on special scheduling agreements whereby the limitations contained in Part 7 (and including the FRMS) may be altered for good and sufficient reason with respect to that schedule. If the limitations contained in any SSA exceed the limitations contained in the FRMS, then the SSA shall not have effect until the CAA has approved the necessary changes to the FRMS.

77.2 Each SSA will be made on the individual circumstances present at the time of review of the schedule and, as such, any SSA will not constitute a precedent for the purposes of any other schedule review.

77.3 Whenever a SSA is reached by the CMG, the details shall be published by the Company and copies sent to all Pilots affected by such SSA.

77.4 For the avoidance of doubt, nothing in this clause affects or prevents the Company from reviewing or altering operating schedules in accordance with the provisions of this Agreement and the FRMS.

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PART 8 – CAREER PROGRESSION AND TRANSFER OPPORTUNITIES

78 PROMOTION AND TRANSFER OPPORTUNITIES

78.1 The Company recognises that Pilots who join the Company do so with an expectation of enjoying a career path within the Virgin Group, and in most cases, based on a commitment for the duration of their career.

78.2 Further, the Company recognises that Pilots’ desired career path will generally involve aspirations including, but not limited to, advancement through the Pilot ranks, experience and advancement on one or more aircraft types and opportunity to work from one or more geographic locations.

78.3 The Company supports career growth for Pilots and is committed to providing the above opportunities to all Pilots as closely aligned with individual preference as practicable.

78.4 The Company will consult with Pilots and their representatives about the above opportunities available to the Pilot group, to maximise such opportunities and address any related issues (including any issues associated with the Virgin Group career progression system). The Company will consult with Pilots and their representatives about these matters via the CMG.

78.5 Consistent with the above, the Company seeks to encourage long term careers across the Virgin Group. To this end, the Company will commit to:

(a) Encourage Pilots to participate in their own career progression process by making applications for vacancies they are suited for (this does not preclude a Pilot who is not endorsed on a type from applying for a position on such type);

(b) Advertise all pilot vacancies internally.

(c) Not engage pilots from outside the Virgin Australia Group until the pool of suitable internal applicants has been exhausted.

(d) Ensuring that the selection process is transparent, provide feedback to candidates when requested and provide mechanisms for review of decisions via the Employment Relationship Problems Process.

78.6 In return, there is an expectation that Pilots will:

(a) Take steps to ensure their own readiness for opportunities including where appropriate to seek out or participate in remedial or developmental training;

(b) Apply appropriately and participate in the selection process;

(c) Meet any freeze requirements related to career moves (see clause 83);

(d) Seek feedback on the outcome of recruitment or promotion decisions; and

(e) Utilise the Employment Relations Problems process detailed in this Agreement to request review of a recruitment or promotion decision.

78.7 To avoid doubt, the Company will not engage/employ any direct entry Captains unless there are no applicants for a command vacancy from within the Group who meet the selection criteria.

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79 PILOTS’ LIST

79.1 The Company will publish a list of all Company pilots as follows (the Pilots’ List).

79.2 Pilot’s will be listed in order of their date of joining, having regard to their service as a contractor to and/or employee of the NZ operation (i.e. those who were either employed or contracted to the Pacific Blue Airways operation prior to August 2008 will be prioritised first); and

79.3 The Pilots’ List will detail the following information:

(a) Position on the List;

(b) Date of joining;

(c) Name;

(d) Staff number;

(e) Base;

(f) Fleet;

(g) Rank; and

(h) End date for any type freeze.

79.4 Pilots who join the Company on the same date will be ordered by their respective experience

levels on that date. In this circumstance, the priority will be:

(i) Greatest hours on aircraft above 40 tonnes as primary crew; or if not applicable,

(ii) Greatest hours on aircraft above 40 tonnes as Cruise First Officers/ Second Officers: or if not applicable, and

(iii) Total aeronautical hours.

79.5 The Pilots’ List will be available on the intranet and updated by the Company at least every six (6) months.

79.6 Any concerns or disputes about the Pilots’ List are to be dealt with in accordance with the Employment Relations Problems process detailed in this Agreement.

79.7 Group opportunity within the Virgin Australia (NZ) operation.

(i) Once the Pilots’ List has been prioritised as above, all Australian based pilots will be added to the bottom of the List. Although these pilots will have a commencement date of 1 July 2012 for the purposes of the List, they will be ordered on that day having regard to their service in their respective Australian based operation.

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(ii) The initial List will then be updated to include all pilots who join (and have joined) the Virgin Australia Group from 2 July 2012 onwards (i.e. irrespective of whether they are employed within the Australian based operation or New Zealand based operation). These pilots will be added to the list consistent with the commencement of their first day of induction.

79.8 Group opportunity within the Australian based operation.

(i) New Zealand based pilots shall have a position on the Australian Pilot List determined in accordance with Appendix 2 of this Agreement (which is Appendix 4 of the Virgin Australia Short Haul Pilots Agreement 2013.)

80 CAREER PROGRESSION PROCESS

80.1 The Parties recognise that once Pilots have gone through the career progression process set out below and have been assessed as suitable, any vacancies will be offered on the basis of their position on the Pilots’ List.

80.2 The process that the Company will follow in order to offer career progression opportunities to Pilots is set out below: (a) Step 1 – advertise the vacancy

The vacancy will be advertised internally. Selection criteria for the vacancy will be set out in the advertisement and/or in other written material referred to in the advertisement (e.g. the A1 Manual). Any such criteria shall be reasonable, objective, relevant and quantifiable. For the purposes of this clause, the term “vacancy” relates to all new appointments promotions, allocation to bases and allocation to aircraft types, other than Training and Flight Examiner appointments which are at the sole discretion of the Company. (b) Step 2 – conduct an initial assessment Candidates who apply for the vacancy will then be assessed against the selection criteria. Only those candidates who apply for a vacancy will be considered. Any candidate who is subject to a freeze (see clause 83) will be considered eligible for the vacancy if the freeze period will be completed before the candidate commences the training course for the new position. (c) Step 3 – determine short list The Company will then create a short list of candidates who meet the selection criteria. This short list will be those candidates who meet the criteria and who have the highest position on the Pilots’ list. (d) Step 4 – conduct further assessment The Company will then conduct a further assessment of those candidates on the short list. This assessment will include an evaluation of each candidate’s performance in the areas of line operations and flight standards. This may require input from relevant line operations and flight standards management in other areas of the Group. The Company will also

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conduct interviews of those on the short list as part of the assessment process. Pilots will be assessed as either suitable or not suitable using reasonable, objective, relevant and quantifiable criteria. This assessment will be documented. Pilots will not be ranked in order of suitability. (e) Step 5 – decision and written notification The candidate/s on the short list who is/are assessed as suitable will be offered the vacancy in order of position on the Pilots’ list. Candidates deemed unsuitable for command/promotion opportunities will, on request, be advised in writing why they were assessed as unsuitable for the position. If all candidates on the short list are assessed as not suitable, the Company will begin the process again in a manner consistent with this clause.

80.3 Any candidate aggrieved by the above process (or decision) can request a meeting with relevant management to discuss their concerns. In this context, unsuccessful candidates are entitled to be provided with reasons why they were unsuccessful in the recruitment process and information about what they need to address to improve their prospects of being successful in the future. Unsuccessful candidates are also entitled to be provided with reasonable support and training to assist them address any deficiencies identified during the recruitment process. If that meeting and/or information provided fails to resolve those concerns, they can progress that matter via the Employment Relationship Problems Process in this Agreement and/or the process set out in the “A Fair Go” policy. Any election to progress those concerns beyond the meeting with relevant management must be made within 14 days of the meeting.

80.4 While Training and Flight Examiner appointments are not covered by the above process, all new Training and Flight Examiner appointments will be advertised internally. Selection criteria for these appointments will be set out in the advertisement and/or in other written material referred to in the advertisement. Any candidate aggrieved by this process (or decision) can progress that in a manner consistent with clause 35.

80.5 All New Zealand based First Officers who have a Pilots’ List date of 1 July 2012, who apply for New Zealand based commands and who are otherwise assessed as suitable for those commands, will be given priority for New Zealand based commands ahead of all Australian based Pilots. This will continue until such time as all relevant New Zealand based First Officers (with a Pilots’ List date of 1 July 2012) have the opportunity to gain a command in the New Zealand based operations.

80.6 The Company will not engage/employ any direct entry Captains unless there are no applicants for a command vacancy from within the Company who meet the selection criteria or there is a need for specific expertise and none of the applicants from the Company Virgin Group candidates have that.

81 BASE TRANSFERS

81.1 Where a Pilot requests a transfer from one Home Base to another, all expenses associated with the transfer will be the Pilot’s responsibility. Where there are more Pilots requesting transfers to a base than there are positions available, transfer will be awarded to Pilots according to the order in which the request to change base was made (i.e. priority for the

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earliest applicants, as per the current practice). From the date of ratification, the current practice will be changed so that priority is given according to the Pilots’ List (see clause 78).

81.2 Should an operational need arise that requires the Company to direct one or more Pilots to transfer from their Home Base to another base in New Zealand, the Company will call for volunteers in the first instance. If sufficient volunteers do not come forward, the Company, at its discretion, may direct one or more Pilots to transfer to another base in New Zealand, with reference to the Pilots list, and those directed shall be those qualified starting from the lowest on the list. For the avoidance of doubt, a First Officer who accepts a command in another base is not being directed to transfer by the Company.

81.3 When a Pilot is transferring from their Home Base to another base at the Company’s direction, the Pilot will be entitled to receive payment for approved reasonable expenses incurred in relocating to the new base as follows:

(a) relocation of personal effects, household goods and furniture;

(b) storage of goods where required for up to 30 days;

(c) flights for the Pilot’s spouse and dependent children to the new base;

(d) where the Pilot elects to use their own vehicle to travel to the new Home Base, the Pilot may claim reimbursement of reasonable expenses for fuel and accommodation. The Company will not, however, be liable for any damage or repair to the Pilot’s vehicle or any other costs or expenses.

82 SECONDMENTS

82.1 Pilots may be seconded to an approved airline outside the Company to advance their careers. Any such secondment requires agreement from the affected Pilot/s, the Company and the approved airline. The Company will determine the airlines that are approved for the purposes of this clause.

82.2 The period of secondment will be determined by the needs of the Company and the approved airline and such period may be extended if all Parties agree. Pilots on secondment must serve out the minimum period specified in their secondment agreement before returning to their prior position at the Company (or another position, as agreed).

82.3 Unless otherwise agreed by the Parties, Pilots must take and/or be paid any outstanding annual leave prior to commencing the secondment. Any sick leave or long service leave accrued at the time will be recognised upon return to the Pilot’s prior position (or another position, as agreed).

82.4 Approved secondments will not break continuity of service and upon return, original position on the Pilots’ List will be recognised.

83 BOND AND ENDORSEMENT ARRANGEMENTS

83.1 The Company will pay for the endorsement and command upgrade costs for all Pilots already employed within the Company.

83.2 The Company may require that those Pilots who are new to the Company pay for their own endorsement. Alternatively, the Company may pay for the endorsement for those Pilots on the basis that they are paid no less than 65% of the relevant Level 1 First Officer’s salary. This

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training salary will be paid for one (1) year and on the anniversary of their commencement, will increase to the relevant Level 2 First Officer’s salary.

83.3 In circumstances where the Company pays for a Pilot’s endorsement, the Company may require that the Pilot:

(a) Be frozen on the aircraft type to which they were endorsed for a minimum of 30 months from the date of successful completion of the clearance to line (CTL) check; and

(b) Repay the endorsement costs of $30,000 (on a reducing pro-‐rata basis, calculated monthly) if their employment with the Company comes to an end (other than by way of Group transfer, redundancy, for medical or compassionate reasons or retirement) during the 30 month period.

83.4 In circumstances where a Pilot upgrades to a command on the same aircraft type, the Company may require that the Pilot:

(a) Be frozen on the aircraft type for a minimum of 20 months from date of successful completion of the CTL check as a Captain; and

(b) Repay the costs associated with the command upgrade of $20,000 (on a reducing pro-‐rata basis, calculated monthly) if their employment with the Company comes to an end (other than by way of redundancy, for medical or compassionate reasons or retirement) during the 20 month period.

83.5 To achieve the requirements of clauses 82.3(b) and 82.4(b) above, Pilots agree that the Company may apply all of their final pay towards repayment of the unpaid portion of the endorsement costs and, if the final pay is insufficient to cover this, the Pilot must enter into a repayment agreement with the Company for the shortfall.

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PART 9 – GENERAL

84 CONFIDENTIALITY

84.1 Protecting the Company's business interests is of prime concern to the Company. As an employee, Pilots will obtain or have access to confidential/commercially sensitive information. Pilots agree not to use any confidential/commercially sensitive information that Pilots have access to in their employment to compete against the Company or any organisation with whom or which the Company carries out business. Pilots also agree not to, during or after employment, disclose to any unauthorised person any confidential or commercially sensitive information acquired during the course of their employment with the Company.

84.2 Pilots will not disclose to any person, firm, corporation or entity, any trade and/or other confidential information acquired through the Company or any organisation with whom or which the Company carries out business including, but not limited to computer programmes, software, forms and documents, training manuals and techniques, products, services, the identities of the current, past and prospective customers, prices charged by the Company, marketing and sales plans, financial information and any other information in intellectual property both during the term of this Agreement and after its termination.

84.3 Likewise Pilots agree not to copy or transmit any confidential/commercially sensitive information which will potentially harm the Company or any organisation with whom or which the Company carries out business.

85 CONFLICT OF INTEREST

85.1 Pilots agree, during the term of this agreement, that they will not enter into any other employment agreement or contractor arrangements, or engage in any other business interest which may present a conflict of interest or have the potential to interfere with the Pilot’s performance of their duties and/or responsibilities to the Company, without the prior approval of the Company.

85.2 Pilots will not fly any other aircraft for hire or reward without the prior written consent of the Company.

85.3 Pilots must not receive any payment, fee, gratuity, commission or other benefit (i.e. incentive or gift) from any person or organisation other than from the Company in payment or exchange for any matter or thing relating to their duties, except with the prior written consent of the Company.

86 PROTECTING REPUTATION

86.1 Pilots agree to use their best endeavours to protect the reputation of the Company and any related entities of the Company. Pilots agree that they will not directly or indirectly engage in any unlawful behaviour or activity which causes or has the potential to cause the Company public embarrassment and/or bring the Company into disrepute. In the event Pilots do engage in such unlawful behaviour or activity this may result in the termination of their employment.

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87 PUBLIC STATEMENTS

87.1 Pilots agree not to make any public statements about the Company (or its related bodies corporate), its activities, employees, guests, clients or the work Pilots perform without the written approval of the Company.

88 COMPANY PROPERTY

88.1 On termination of employment for any reason whatsoever Pilots shall immediately deliver to the Company any Company issued uniforms, identification cards, access cards, keys, documents, records, files, data, papers, manuals, car parking access card and other materials (together with all copies) in their possession or control which relate in any way to the business or activities of the Company or any organisation with whom or which the Company carries out business.

89 MISREPRESENTATION

89.1 Prior to and during a Pilot’s employment, the Company has relied and will rely upon the Pilot’s statements and representations in relation to their skills, qualifications, knowledge and history.

89.2 Should a Pilot provide the Company with incorrect information or fail to provide the Company with information when required, this will be regarded as serious misconduct which could lead to disciplinary action up to and including termination of their employment.

90 ANTI-‐DISCRIMINATION

90.1 The Parties respect and value diversity in the workplace.

90.2 The Parties will help to prevent and eliminate unlawful discrimination in accordance with relevant anti-‐discrimination legislation.

90.3 The parties acknowledge, in so-‐far-‐as operational needs, inherent requirements and flight safety will allow, that all Pilots must be available to fly to rosters created to meet the 24 hour a day 7 days a week operation of the Company and that they will not otherwise discriminate against another Pilot.

90.4 The Parties are bound by and will apply applicable policies on harassment and discrimination (Fair Go Policy, the Virgin Group Code of Conduct and Keeping Our Workplace Fair as available on the Virgin Group intranet) and any relevant legislation. Pilots may be asked to assist in any investigation should an incident involving alleged discrimination, harassment or any other form of unacceptable behaviour occur.

91 HEALTH AND SAFETY

91.1 The Parties to this Agreement accept that there is a shared responsibility for health and safety in the workplace. It is acknowledged that the Company and the Pilots are committed to achieving excellence in the management of health and safety in the workplace and to operate under the requirements of the Health and Safety in Employment Act 1992 (NZ), (as amended or replaced).

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91.2 The Company shall ensure that:

(a) Pilots are properly informed and understand the procedures in place to provide for healthy and safe systems of work and proactive workplace rehabilitation; and

(b) Pilots are protected from health and safety hazards arising in the workplace and that adequate and sufficient safety equipment is provided.

91.3 Pilots shall assist the Company in identifying, minimising and/or eliminating hazards and constructively be involved in proposing solutions in this regard.

91.4 Pilots must advise the Company of any medical condition (including stress-‐related symptoms) which may impact on their ability to perform their duties safely and effectively.

91.5 Pilots are required to work safely at all times and to follow all health and safety procedures and systems and in particular to take all practicable steps to ensure their own fitness for work and the safety of others in the place of work. Should a Pilot have any concerns in respect of the safety and wellbeing of any person, the Pilot must report this using the appropriate reporting channels as soon as possible.

91.6 Pilots shall report for work in such a condition that Pilots are able to perform duties properly and safely and will ensure that they do not put their or anyone else’s safety at risk.

92 DELEGATES’ RIGHTS

92.1 The Company will recognise up to three (3) delegates from NZALPA.

92.2 The Company will allow NZALPA delegates to perform their role as union delegates without any discrimination in their employment.

92.3 In allowing NZALPA delegates to perform their role, the NZALPA delegates will be allowed a reasonable amount of paid time, if the Pilot is rostered on to work, to attend to representation issues, provided that the efficient operation of the Company’s business takes precedence and the Pilot has provided reasonable notice to the Company. To avoid doubt, time spent performing this representational type work does not count towards a Pilot’s overtime calculations.

SIGNATORIES Signed for and behalf of VIRGIN AUSTRALIA (NZ) EMPLOYMENT AND CREWING LIMITED _____________________________________ [NAME] [POSITION] _____________________________________ Date

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Signed for and behalf of NZALPA _____________________________________ Dean Fotti Industrial Director _____________________________________ Date

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Appendix 1 – Definition of Unassigned Day from the current FRMS

4.1.13.3 Unassigned Day

(a) An unassigned day is shown on SABRE rosters as Grey Day.

(b) An unassigned day may be rostered at the crew member's base residence, or temporary base residence, or during a tour of duty.

(c) A crew member who has been assigned an unassigned day may subsequently be allocated a duty, subject to Section 4.1.13.3 – Unassigned Day (f), to work on this day.

(d) If a crew member has not been assigned a duty for an unassigned day, then the unassigned day shall not be regarded as a duty period.

(e) A rest period may be included as part of an unassigned day.

(f) A crew member may be allocated a duty on an unassigned day (Grey Day) provided:

• All other requirements within this scheme are met;

• The crew member is notified of this change by the later of 1800 hours the day prior or at sign-‐off from the preceding duty before the actual unassigned day commencing.

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Appendix 2 – Appendix 4 of the Virgin Australia Short Haul Pilots Agreement 2013 This document sets out the rules of the creation and maintenance of the Pilots’ List as set out in clause 51 of the Agreement. 1. PILOTS’ LIST

1.1 An initial Pilots’ List will be compiled to include all pilots in the Virgin Australia Group

(i.e. Australian based short haul pilots, Australian based long haul pilots and New Zealand based pilots) as at 1 July 2012.

(a) The initial list will order the relevant pilots as follows:

(i) Australian based short haul pilots will maintain their existing priority (i.e. they

will not be re-‐prioritised as between themselves).

(ii) Australian based long haul pilots will then be added to the list according to the commencement of their induction as a pilot in the Virgin Australia Group. In cases where long haul pilots commenced induction on the same day, they will be prioritised according to their experience upon induction in the manner outlined in 1.1(d) below. Finally to avoid doubt, a pilot who joined the Australian based short haul operation in 2003; for example, and then transferred to the long haul operation in 2009 will be ordered having regard to their commencement in 2003.

(iii) The above list will not be re-‐prioritised other than as outlined above.

(iv) Once the Australian based short haul pilots and long haul pilots have been prioritised as outlined above, all New Zealand based pilots will then be added to the bottom of the list. Although these pilots will all have a commencement date of 1 July 2012 for the purposes of the list, they will be ordered on that day having regard to their service as a contractor to and/or employee of the New Zealand based operation (i.e. those who were contracted pilots to the Pacific Blue operation prior to August 2008 will be prioritised first). Notwithstanding this, New Zealand based pilots who commenced employment in the Virgin Australia Group as an Australian based pilot will be prioritised having regard to the commencement of their induction as a pilot in the Virgin Australia Group.

(b) The initial list will then be updated to include all pilots who join (and have joined) the Virgin Australia Group from 2 July 2012 onwards (i.e. irrespective of whether they are employed within the Australian based short haul operation; Australian based long haul operation or New Zealand based operation). These pilots will be added to the list consistent with the commencement of their first day of induction.

(c) Pilots must be employed on a permanent basis by a company or entity within the Virgin Australia Group to be included in the list.

(d) From 2 July 2012 onwards, Pilots who commence induction with the Virgin Australia Group on the same day will be ordered by their respective experience levels on that date. In this circumstance, the priority will be:

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(i) Greatest hours on aircraft above 40 tonnes as primary crew; or if not

applicable;

(ii) Greatest hours on aircraft above 40 tonnes as Cruise First Officers/Second Officers; or if not applicable,

(iii) Total aeronautical hours. 1.2 The date of joining for Virgin Australia cadet pilots will be their first day of induction as

a First Officer/Cruise Relief First Officer within the Virgin Australia Group.

1.3 Any Pilot who is made redundant and who is re-‐employed as a Pilot by Virgin Australia within 5 years will resume their prior position on the Pilots’ List. Pilots who are made redundant will be given priority for re-‐employment.

1.4 In recognition of clause 1.1(a)(iv) above, and subject to the outcome of the Virgin Australia New Zealand Collective Employment Agreement negotiations, Pilots covered by this Agreement recognise that all New Zealand based First Officers who have a Pilots’ List date of 1 July 2012, who apply for New Zealand based commands and who are otherwise assessed as suitable for those commands, will be given priority for New Zealand based commands ahead of all Australian based pilots. This will continue until such time as all relevant New Zealand based First Officers (with a Pilots’ List date of 1 July 2012) have the opportunity to gain a command in the New Zealand based operations. The parties will continue to consult in respect to New Zealand based opportunities for New Zealand pilots.

1.5 For the purposes of Appendix 4, the Virgin Australia Group extends to the Australian based short haul, long haul and New Zealand operations (VAA, VAI and VANZ) as at 15 February 2013 and not to any business/company acquired after this date.

1.6 In the event of the acquisition of another airline, Virgin Australia will consult and agree with the VAA AIC on the terms under which that airline’s pilots are added to the Virgin Australia Group pilot list.

2. NARROW BODY COMMAND PRORITY DATES

2.1. Command Priority Dates will operate for the award of narrow body commands. Narrow body includes Boeing 737 aircraft, Embraer 190 Aircraft or any replacement narrow body jet aircraft. For the purpose of narrow body FO positions, or wide body FO or Captain positions, a pilot’s Date of Joining is the only consideration.

2.2. A Command Priory date will be given to all Short Haul First Officers and Cruise Relief First Officers employed before 1 July 2012 and will be notated in a separate column on the Pilots’ List.

2.3. Command priority dates of the relevant pilots will be determined in accordance with the following rules:

(a) All short haul first officers (direct entry) employed at Virgin Australia short haul operation before 1 July 2012 will be given a command priority date that corresponds with their date of joining in the Virgin Australia Group.

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(b) Former Cruise Relief First Officers who transferred from VAI to VAA as a short haul

first officer prior to 1 July 2012 will be given a command priority date that corresponds with their date of induction into the short haul operation.

(c) Cruise Relief First officers (existing) employed at VAI prior to 1 July 2012 will be given a command priority date of 30 June 2012 for the purposes of the Command Priority List. They will be ordered on that day having regard to the commencement of their induction with the long haul operation. Cruise Relief First Officers who commence induction on the same day will be ordered by their respective experience levels on that date. In this circumstance, the priority will be:

(i) Greatest hours on aircraft above 40 tonnes as primary crew; or if not

applicable

(ii) Greatest hours on aircraft above 40 tonnes as Cruise First Officers; or if not applicable,

(iii) Total aeronautical hours.

(d) Former Australian based pilots who were employed by VANZ prior to 1 July 2012 will be given a command priority date of 30 June 2012 if they were previously employed as a CRFO or a date that corresponds with their induction as a pilot in the Virgin Australia Group if they were previously employed as a short haul first officer (direct entry).

3. APPLICATION OF THE PILOTS’ LIST AND NARROW BODY COMMAND PRIORITY DATES

3.1 For the purpose of section 3 of this Appendix, the following acronyms are used:

(a) Direct Entry FO’s who hold a Command Priority Date: DECP holder

(i) Ex CRFO’s or current CRFO’s who hold a Command Priority Date: RCP holder

(b) Date of Joining only (no CPD assigned): DOJO holder.

3.2 DECP holders will be considered as DOJO holders, once they are checked to line as a Captain. At this point their CPD is deleted from the Pilots’ List.

3.3 ERCP holders will be considered as ERCP holders whilst they are both a FO and a Captain. Once an ERCP holder is checked to line as a Captain, their CPD becomes bracketed and remains on the Pilots’ List for future reference.

3.4 For any narrow body command position where there is a DECP holder bidding, the dates used to rank pilots are listed in 3.4(a) and 3.4(b) below. The pilot with the earliest date will be awarded the command position.

(a) DECP holders and ERCP holders – CPD; and

(b) DOJO holders – DOJ.

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Example: Only direct entry FO’s (priority not yet used) and ex CRFO’s are bidding for a command, CPD is used to ensure the priority of the direct entry FO is maintained.

Example: A DECP holder (direct entry FO who has not used command priority) and a DOJO holder (either direct entry FO who has used command priority or Captain at EBA vote) are bidding for a command. The DECP holder’s CPD and the DOJO holder’s DOJ are used to award the command.

Example: A direct entry FO (command priority not yet used, so DECP holder), an ex CRFO (irrespective of rank, so an ERCP holder) and a Captain (who was previously a direct entry FO and has used their command priority, so now a DOJO holder) are bidding for a command. The direct entry FO (DECP) has not yet exercised their command priority, so CPD must be used to ensure command priority is maintained compared to the ex CRFO (ERCP). The direct entry FO and ex CRFO CPD is compared against the DOJO holders DOJ to award the command.

3.5 For any narrow body command position where there is no DECP holder bidding, the dates used to rank pilots will be their DOJ. The pilot with the earliest date will be awarded the command position.

Example: A Captain (who was previously a direct entry FO who has used their command priority, so now a DOJO holder) and an FO (ex CRFO, so an ERCP holder) are bidding for a command position. DOJ is used to prioritise pilots because there is no DECP holder bidding. The pilot with the earliest DOJ will be awarded the command.

3.6 Command priority dates will cease to operate either as soon as the last Short Haul First Officer (direct entry) who was employed before 1 July 2012 has exercised their command priority date, or after 20 years from the date that the 2013 Agreement comes into operation, whichever occurs first. From this time onwards, narrow body commands will be awarded in accordance with the Group date of joining.

3.7 To avoid doubt, all references to the award of commands etc in this Appendix must be read subject to the career progression provisions in the Agreement, in particular, the requirement that the successful candidate must be assessed as “suitable”.

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