🗞️Bonza Administration Confirms Job Terminations for Workers

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Bonza administrators have confirmed the termination of employment for workers today, providing them with certainty but also delivering bad news. Virgin Australia has pledged to give Bonza employees priority when it comes to job opportunities, and the TWU is prepared to assist workers by offering a Fair Entitlements Guarantee procedure.

The background

On April 30, 2024, a resolution of the Company's directors appointed Richard Albarran, Kathleen Vouris, Brent Kijurina, and Cameron Shaw as Administrators of the Company in accordance with Section 436A of the Corporations Act 2001 ("the Act").

The appointment of an Administrator allows an impartial insolvency professional to take control of the Company and delay creditors' claims.

After that time, the Voluntary Administrators must give information and suggestions to creditors to help them make decisions about the Company's future. Usually, they do this at a meeting of creditors that is held at the conclusion of the convening period.

Hall Chadwick

Hall Chadwick said in a statement this afternoon that, as of last Friday, no formal offers had been made for the airline. After thoroughly reviewing the company, interested parties who had shown interest chose not to make a formal offer.

At a significant meeting that the administrators for creditors have called, the company's employees, customers, and trade suppliers will decide its future. The date for the important meeting has not been set yet, but it is expected to occur soon.

Following a town hall meeting with Bonza's 323 employees earlier today to notify them that all upcoming flights had been cancelled and that their employment had been terminated, administrators Hall Chadwick made the announcement.

The Transport Workers Union (TWU) is an organization that represents workers in the transport industry.

Last week, the TWU, ASU and the whole union movement passed a motion on the need for a Safe and Secure Skies Commission to provide regulatory oversight, stability and binding standards for aviation.

An estimated 25,000 aviation workers left the industry during the pandemic, with another 300+ jobs lost today.

Although the termination frees up Bonza employees to seek alternative full-time employment without losing their owed entitlements, the Federal Government FEG scheme doesn’t kick in unless or until Bonza goes into liquidation.

TWU National Secretary Michael Kaine stated that this is another setback for Bonza workers and the aviation industry.

“This is incredibly difficult news for Bonza employees who have received no pay for more than two months after the airline’s sudden collapse. It’s a dark day for regional communities across Australia which remain isolated through unaffordable or unavailable air travel to remain connected with the nation.

Why does it matter?

It is significant because the lack of assistance shown to Bonza employees draws attention to the vulnerability of aviation industry workers and the possible effects on local communities. In the event of sudden business failures, communities and employees bear the brunt of the consequences, facing significant challenges and hardships. This is due to the absence of adequate protective measures in place, leaving communities and employees vulnerable to the consequences of business failures.

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