Nearly Three Percent Across The Board, With An Additional Bump For FOs In 2013s

Horizon Air and its pilots, represented by the International Brotherhood of Teamsters APA Local 1224, jointly announced Thursday that the neutral arbitrator responsible for choosing the 2012-2013 wage structure most appropriate for the Horizon Air pilots has ruled that there should be a 2.8 percent increase for all pilots in 2012 and an additional 1.2 percent increase for first officers in 2013, as outlined in the proposal by the International Brotherhood of Teamsters (IBT), which represents Horizon's pilots.

"Of course, we will entirely abide by this decision, which was the product of a very fair process agreed to by both sides," said Horizon Air President Glenn Johnson. "Despite our different views on compensation levels, Horizon and the IBT always agreed about one thing: the professionalism of our highly skilled pilots and the great value they add to Horizon every single day."

In November 2010, Horizon's pilots ratified their current five-year contract, which becomes amendable December 2015. It includes a clause specifying that wages will be re-examined by the company and the International Brotherhood of Teamsters (IBT) twice, once in 2011 and again in 2013.

This year, Horizon and the IBT arrived at a tentative wage settlement, but it was rejected by the pilots who had not seen a wage increase in more than five years. Per the contract, both parties then presented their "last, best and final" offers to the arbitrator, who was charged with choosing one or the other (versus some combination of the two), after considering the merits of each.

"Both sides made compelling arguments in presenting a case to the arbitrator for consideration and we are very pleased with the arbitrator's decision," said Horizon Air Captain Mark Niles, who serves as the Executive Council Chairman for APA Teamsters Local 1224. "This small boost in wages will have a tremendous impact on the morale among our pilots. We have always been proud to be affiliated with a strong company, and look forward to working with Horizon Air to build upon the company's continued success."

Horizon and the IBT will return to the negotiating table by late 2013 to attempt to arrive at an agreement for 2014-2015 wages. If a tentative settlement is not achieved and ratified, the decision will again shift to an outside neutral arbitrator.

FMI: www.alaskaair.com, www.ibt1224.org