VIRGIN EXPANDS AND CUTS JOBS IN SAME MONTH

Less than a fortnight after Richard Branson took delivery of $2 billion worth of Boeing 777s for the new Sydney-Los Angeles route, Virgin Blue in Australia has announced it will cut five planes from its Australian domestic fleet affecting more than 400 jobs.

Transport Workers' Union Federal Secretary, Tony Sheldon, said while the Union was waiting for a full briefing from the airline he was hopeful that jobs could be maintained at the company.

"I am worried about those 5,500 families who woke up this morning to the news from Virgin Blue that 400 staff may no longer have any job security," Mr Sheldon said.

"There has been no consultation with Virgin Blue employees as to where these cuts will come from, so we will have plenty of families out there who don't know where their futures lie."

"Virgin say there has been a downturn in demand recently but that does not mean markets won't improve in the future, and I am confident Virgin is a strong enough company to see this out without cutting staff."

"In the meantime, we need to talk to Virgin Blue and ensure that the 400 jobs they say could be affected is brought down to a minimum through exploring all options. We will work with them to find a solution to this," Mr Sheldon said.

Mr Sheldon said given the tough economic times, the Federal Government should look at its $42 billion stimulus package, as well as its general procurement procedures which amounts to over $44 billion a year, to ensure companies are required to supply working Australian families with job security and a fair living wage.

"The Federal Government alone spends upwards of $44 billion a year on its contracting services and we believe they should be putting conditions on these contracts to ensure they go to companies who are willing to keep employees working," Mr Sheldon said.

"This is not just something that concerns just the aviation or transport industries, but I would like to see the Government put in place a strategy to ensure all contracts issued by governments in Australia protect Australian jobs and the living standards of working families."