Rex staff entitlements must be paid, argues union

The union for frontline customer service staff has called on the Albanese government to cover unpaid entitlements for laid-off Rex employees.

Editor’s note: This story first appeared on HR Leader’s sister brand, Australian Aviation.

Around 600 Rex workers are expected to lose their jobs after the airline went into administration on Tuesday (30 July) night, with the United Services Union (USU) saying administrators told them they would also miss out on entitlements despite Rex’s regional operations continuing to trade.

USU general secretary Graeme Kelly labelled it “outrageous” that workers at the airline will miss out on “even $1 of their entitlements”.

“As late as the weekend, workers were working overtime and on RDOs when Rex bosses must have known they fully intended to sack them, and would try and get out of paying,” he said.

“Rex management could have been in contact with us months ago and brought us into discussions, but instead, they chose to wait until the airline goes belly up, and there is nothing we could do to help. And on top of that, they’ve left no money to pay their workers. The union is ropable about this.

“The Albanese government needs to step in and make sure these workers are looked after. The union will now be working with the administrator to try to ensure our members’ entitlements are protected and to save as many jobs as possible.”

TWU national secretary Michael Kaine said the union is “working to secure job opportunities at other airlines and aviation companies for ground crew, cabin crew and pilots, and have had positive conversations with Virgin Australia and ground handler Dnata”.

“Administrators have acted swiftly to provide clarity to workers, though it is not the news workers hoped for. The focus now must be on maximising jobs, protecting regional routes, securing redeployment opportunities to other aviation businesses and ensuring entitlements are paid as soon as possible,” he said.

At a press conference on Wednesday, Transport Minister Catherine King said the Department of Employment and Workplace Relations is engaging with administrators EY Australia.

“This is obviously a really distressing time for staff, and I do want to say – and thank you both again to Virgin and Qantas, who have said very clearly if they have available positions, and both of them do at the moment and through Jetstar as well – they are very happy to look at taking on Rex staff,” she said.

“But also, if there are any staff, please contact your union at the earliest opportunity if you’ve got any concerns in terms of that as well.”

When Bonza collapsed earlier this year, staff were eventually able to receive back pay through the government’s “Fair Entitlement Guarantee”, which employees can only claim if they have lost their job “due to the insolvency of [their] employer”.