Atlas Air Prevails in Pilot Labor Arbitration
August 27 2019 - 9:00AM
Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today confirmed
that its subsidiary, Atlas Air, Inc. (the “Company”), prevailed in
an important arbitration between the Company and the union that
represents its pilots, the Airline Professionals Association,
Teamsters Local 1224 (the “Union”). The August 26, 2019
arbitration decision affirms that the merger provisions of the
collective bargaining agreement (CBA) apply in connection with
Atlas Air’s acquisition of Southern Air, Inc. in April 2016.
It further affirms the Company’s long-standing
position that the Union has been in violation of the existing CBA
by refusing to follow the merger provisions for a new joint
collective bargaining agreement (JCBA), and by failing to present
an integrated pilot seniority list to the Company. In a
separate, but related, proceeding, the Union was also found to be
in violation of the Southern Air CBA for refusing to follow the
merger provisions for this JCBA on behalf of the Southern Air
pilots.
“It is time for our hardworking crew of over
2,000 Atlas Air and Southern Air pilots to receive a new,
competitive contract with enhanced pay and benefits. This has
been our goal since we announced the Atlas-Southern merger in early
2016. The recent decisions by the arbitrators have made clear
that the existing collective bargaining agreements provide the
appropriate path for the merger and should have been followed,”
said William J. Flynn, Chairman and Chief Executive Officer, Atlas
Air Worldwide. The arbitrators in both cases ordered the Union to
now proceed with contractually required negotiations for a new JCBA
in connection with the merger. The Union is required to
submit an integrated seniority list of Atlas Air and Southern Air
pilots to the company within 45 days, followed by a period of
bargaining, after which any unresolved issues would be submitted to
timely, interest-based arbitration.
As previously announced, in a separate
labor-related proceeding in July, the U.S. Court of Appeals for the
District of Columbia affirmed a federal district court ruling that
ordered the International Brotherhood of Teamsters, the
International Brotherhood of Teamsters, Airline Division, and Local
Union No. 1224 to stop an intentional and illegal work slowdown by
Atlas pilots in violation of the Railway Labor Act. The
unanimous ruling from a three-judge panel blocks the Union from
continuing to engage in improper activities such as excessive sick
calls on short notice or refusing to work overtime.
“Now, with these decisions behind us, the path
forward is clear and we are positioned for real progress,” said Mr.
Flynn. “In order to advance negotiations and provide our pilots
with the new contract they deserve, the Union has important
responsibilities as part of this process. Specifically, the
Union has an obligation to promptly provide us with an integrated
seniority list as ordered by the arbitrators. Additionally,
despite our repeated requests, the Union has yet to provide us with
a comprehensive economic proposal covering pay and benefits for
evaluation. These steps are essential for us to move forward
in a timely way for the benefit of our pilots.
“We value the dedication of our crews, and we
look forward to recognizing their significant contributions to the
development and growth of our business. Together with the
Union, we have a responsibility to create an environment for our
pilots to achieve their fullest potential.”
For more information about the contract
negotiations process and updates, please visit AtlasAir5YPilots.com
and follow @AtlasAir5Y on Twitter.
About Atlas Air
Worldwide:
Atlas Air Worldwide is a leading global provider
of outsourced aircraft and aviation operating services. It is the
parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and
Titan Aviation Holdings, Inc., and is the majority shareholder of
Polar Air Cargo Worldwide, Inc. Our companies operate the world’s
largest fleet of 747 freighter aircraft and provide customers the
broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for
domestic, regional and international cargo and passenger
operations.
Atlas Air Worldwide’s press releases, SEC
filings and other information may be accessed through the company’s
home page, www.atlasairworldwide.com.
Contacts: Debbie Coffey (Media) – (914) 701-8951
Dan Loh (Investors) – (914) 701-8200
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