Company Watch - Virgin Group

AirGuide Business, Jan 14, 2008

Jan 14, 2008

Strike off for Virgin Atlantic. Virgin Atlantic cabin crew will not strike tomorrow Jan. 9 after the Unite union agreed to a two-year deal of a 4.8% increase on basic pay in year one and then rising with inflation in the second. Both 48h strikes the second was planned to start 16 January are off. The deal also allows for previously-agreed increases to other variable elements of pay, and will be reviewed in April 2009. Sir Richard Branson, president of Virgin Atlantic, said: We are pleased that both sides have managed to avert strike action that was planned for this week and next. The outcome is a triumph of common sense and means that our passengers need not worry about getting to their destinations. Both parties agreed prolonged discussions were potentially damaging to the relationship between the company, its cabin crew and the union. It had looked as though an agreement was going to be impossible in time to prevent industrial action - the first in Virgin s history. Jan 8, 2008

Virgin Atlantic and its cabin crew unions were digging their heals in yesterday Jan. 7, when the airline published a statement saying a deal would only be possible if employees did not strike - Virgin Atlantic is committed to resolving this dispute but the only way our cabin crew are going to see any form of pay increase in future is by joining the hundreds of volunteers coming in to work, it said. A Unite spokesman said this was intimidating behavior by Virgin and not helpful for future negotiations. But today the same spokesman said the deal had now been accepted. There are some changes and the deal has actually increased because the RPI has changed from 3.5% to 4.3% - so it s now a 9% deal over 24 months. Plus there s a commitment to look at the overall relationship between the union, Virgin and employees in the big scheme of things it s a good thing. Jan 8, 2008

Virgin cabin crew union Unite had actually recommended Virgin Atlantic s proposed deal to its members a two-year increase to basic pay equating to an 8.4% increase during the period but when it was voted down a strike seemed certain to go ahead. In further Virgin news, plans for its premium-only service have been put on ice because of a lack of progress in stage two of Open Skies. What s the point in introducing a service when it will be wound up a year and a half later? There s been no progress on Stage II, said an airline spokesman. Open Skies begins in March this year, but the agreement is due to finish in 2010. Jan 8, 2008

Virgin Atlantic Airways said Friday Jan. 4 that "hundreds of cabin crew volunteers" had come forward to ensure the airline is able to operate a near-normal service during the planned forthcoming industrial action. VS hopes to operate 90% of its schedule during the Jan. 9-10 and Jan. 16-17 strikes. It also reiterated that there will be no pay increase if cabin staff strikes. "Virgin Atlantic is committed to resolving this dispute but the only way our cabin crew are going to see any form of pay increase in future is by joining the hundreds of volunteers coming in to work on the planned strike days and ensuring that our customers get to their destinations," COO Lyell Strambi stated. "I believe that the union are hearing loud and clear from their members that they will be far worse off unless they come in to work." Jan 7, 2008

Virgin's Branson partners with Boeing on quest for alternative fuel. Virgin Group's Richard Branson is working with Boeing and GE to demonstrate that commercial aircraft can fly on alternative fuel. He notes that butanol is promising because it is more powerful than ethanol and doesn't freeze at 15,000 feet. Branson says he doesn't believe that the public will be willing to pay more for green energy, adding "it's got to be a viable investment if it's going to be successful." Jan 7, 2008

Virgin Trains looks for feedback. Virgin Trains is looking for new members to assist with its Passengers Panel. The development is timely given the chaos that the operator was thrown into this week as work overruns caused tens of thousands of passengers to endure commuter misery. Virgin Trains was forced to advise passengers not to travel on its West Coast Main Line services following Network Rail s late finish to engineering work at Rugby that tipped the New Year return into meltdown. The Panel will meet Virgin Trains managing director Chris Gibb and his senior team to put forward comments and suggestions. This unique opportunity allows passengers to tell Virgin what they think about our services, stations and trains, said a company statement. Applicants should apply in writing, indicating which areas of the Virgin Trains business they would like to discuss. Details including postal address, email, age and which routes applicants travel most, should be sent to: vtmediaroom@virgintrains.co.uk. Deadline is January 18. Jan 8, 2008

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