Rex

Jun 6, 2022

Share Regional Express is staring down possible pilot strikes that could thrust its business into chaos after the carrier failed to appease the union during pay talks last week. The airline told the ASX on Monday morning it was aware of communications from AFAP to pilots that Rex felt was “malicious, misleading and deceptive”. Robert Pearce The Australian Federation of Air Pilots (AFAP) confirmed it had lodged an application to conduct a protected industrial action ballot of members with the Fair Work Commission (FWC) late last week. A union spokeswoman said it had attempted to negotiate with Rex for a new pay deal since 2018, and that the airline’s latest offer for its pilots was “worse than previous offers made by the company”. “This latest offer represents a cut in real-term salary of more than 5 per cent since 2018. It does not contain back pay and does not cover [rises in the consumer price index] over the previous four years,” the spokeswoman said. “As a result, Rex pilots have been left with little option than to exercise their lawful right to lodge an application for a protected industrial action ballot.” Advertisement If the FWC approves the application, the Australian Electoral Commission will then conduct a poll of pilots. If over 50 per cent vote to take industrial action, strikes must start within 30 days after the result. Rex has been approached for comment. The airline told the ASX on Monday morning it was aware of communications from AFAP to pilots that Rex felt were “malicious, misleading and deceptive”. Competitive pressure “It is disappointing that the AFAP would manipulate information provided to them during the course of negotiations to seek to achieve its aims,” Rex said. The strike threat comes just after deputy chairman John Sharp admitted load factors on its domestic capital city flights “aren’t where we want them to be” a year since launching the services. The carrier also said it would pull out of five regional routes last week, citing competitive pressure from Qantas and an end to government subsidies for these flights. “That announcement also made clear that Rex’s remaining regional network will be closely monitored, and further adjustments could be announced in the coming months,” the airline said. Advertisement “Rex has regularly updated the market regarding the detrimental impact of the well-publicised predatory conduct by its competitor on regional routes.” Rex said it would channel any excess resources from the terminated routes to other regional services where passenger numbers were stronger and had growth potential. “Rex’s current regional flying is about 90 per cent of pre-COVID-19 levels, with passenger numbers equally at about 90 per cent of pre-COVID-19 levels,” the airline said. “Rex believes that it will be reaching over 100 per cent of pre-COVID-19 levels of regional flying activity at the start of the new financial year.” Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter . Email Lucas at lucas.baird@afr.com Save