Airline Division Week in Review — August 17, 2018

Southern Air pilots ratify Tentative Agreement

Pilots who fly for Southern Air, a subsidiary of Atlas Worldwide Holdings have ratified a Tentative Agreement that brings their contract on par with those of pilots at AAWW-owned Atlas Air. Pilots at both airlines are represented by their union, the Airline Pilots Association, Teamsters Local 1224.

The LOA provides some temporary relief for the pilots who were forced to negotiate their contract with Southern Air during bankruptcy. As a result, Southern Air--which flies exclusively for DHL--has been unable to attract and retain pilots.

The voting period for the Southern Air LOA closed on Thursday, August 9th. Nearly 94% of their membership voted, with 181 (94.76% voting in favor and 10 opposing the agreement.

Teamsters win industry leading agreement for UPS Mechanics

After four years of bargaining, over one thousand three hundred UPS aircraft mechanics and related employees represented by Teamsters Local Union No. 2727 have secured significant raises in pay, improved retirement security and the protection of health care benefits in a new tentative contract agreement reached with the shipping company.

The tentative agreement, which will be voted on in the coming weeks by the Union’s membership, sets a new bar for aircraft mechanics in the U.S. airline industry, with pay rates and benefits that surpass those at FedEx and all other major U.S.-based carriers. Upon ratification of the new contract, Local 2727 members will become the highest paid aviation mechanics in the country by a wide margin.

“It’s because of the tremendous resolve and unity of our members and their families that we’re celebrating this historic agreement with UPS,” said Tim Boyle, President of Louisville-based Teamsters Local 2727. “We knew if we stuck together and stayed committed to protecting the pay and benefits we’ve earned over decades of hard work, we’d do what many thought was impossible and win big for our families, the future of our company and our customers. This contract does just that along with raising standards throughout the aviation industry.”

Highlights of the new tentative agreement include:

• Dramatic increases in pay for all mechanics and related employees, including an immediate 16 percent pay increase
• Three percent raises each year, resulting in a 30.7% increase in pay from current rates by the end of the contract
• Full retroactive pay for all hours worked from November 1, 2013 (the day the current contract first became amendable) to the date of ratification
• Protection of an unparalleled health care package with no premiums
• An increase in UPS’s pension contribution   

“I want to extend my congratulations to the Teamsters Local 2727 negotiating committee. This agreement is the culmination of over four years of long hours, hard work and dedication from them. Their focus on improving the existing agreement and quality of life for our UPS members is what now enable us to bring this industry-leading contract to the membership for their review and decision,” said Capt. David Bourne, Director of the Teamsters Airline Division.

 “UPS aircraft mechanics went for years without a raise and we’ve worried long enough about the future of our medical care,” said aircraft mechanic Jack Chatburn who was on the bargaining committee. “We are eager to share the details of this top-notch agreement with our members and our families who will now have the top-notch pay and health benefits we’ve been fighting for. We believe the contract will be ratified swiftly.”

The full details of the tentative agreement will first be disclosed to and discussed with Teamsters Local 2727 members. Members will vote whether to ratify the agreement in a secret ballot referendum that will be conducted in September.

Members of Local 986 and Local 959 Gain Wage Increases, Benefit Improvements

Teamster pilots with Aloha Air Cargo (AAC) and Northern Air Cargo (NAC) voted overwhelmingly today to ratify an agreement providing for wage increases, benefit improvements and increased job protections. The 104 pilots are members of Teamsters Local 986 in South El Monte, Calif., and Local 959 in Anchorage, Alaska.

The pilots are based in Anchorage, Honolulu, and Miami, and operate Boeing 737 and 767 aircraft.

Negotiations for separate agreements at AAC and NAC were already in progress in 2017 when the carriers announced a merger of the pilot groups. After months of hard work and dedication by the rank-and-file members, negotiating committee members and union leaders, a tentative agreement with the company was reached in June 2018. Upon ratification of the agreement today, the AAC and NAC pilots became one pilot group under a single seniority list.

“Under this agreement, the pilots will be better compensated and enjoy a higher standard of living and protections on the job,” said Capt. David Bourne, Director of the Teamsters Airline Division. “Thanks go out to the pilot negotiating committee, as well as our international representatives and local business agents. In addition, the support from Secretary-Treasurer Rick Boyles of Local 959 and Chris Griswold of Local 986 has been invaluable.”