Company, Pilots Released from Negotiations
Polar Air Cargo and the Airline Pilots Association (ALPA) have
been released from negotiations by the National Mediation Board
(NMB) into the 30-day cooling off period that must occur before
either party can engage in economic self-help, which includes the
right to strike on the part of the Polar crewmembers.
This action by the NMB followed a decision by ALPA to reject the
NMB's proffer of binding arbitration. The 30-day cooling off period
is set to expire at 12:01 a.m. EDT on September 16th.
"While the company is committed to reaching an agreement, we
simply can't agree to a contract that further challenges the
viability of our scheduled service business," said Jeffrey H.
Erickson, President and CEO of AAWW. "Unlike other carriers that
have entered or threatened to enter bankruptcy, we have never asked
our crewmembers to take any kind of pay or benefit cut or make any
kind of work rule concessions. Instead, we have offered a fair
agreement that includes significant wage and benefit increases,
which is extraordinary in the current environment."
In its effort to reach a bridge
agreement pending the completion of the merger, the company had
offered an immediate 10.5% pay raise plus profit sharing, with no
work rule changes to the existing contract. This offer would have
put the Polar crewmembers' contract at parity with the contract
covering the crewmembers of Atlas Air, Inc. (Atlas), also an
operating subsidiary of AAWW, and the leading provider of ACMI
(aircraft, crew, maintenance and insurance) freighter aircraft to
major airlines around the globe. ALPA has continued to demand a 32%
increase, 20% effective immediately and another 11% effective
December 1.
AAWW is also immediately suspending its previously announced
plans to combine the bargaining units and merge the operating
certificates of Atlas and Polar. "Due to the uncertainties
associated with the release into the 30-day cooling off period, the
company does not believe it is advisable to continue to pursue the
merger at this time," Erickson continued. "We are, therefore,
suspending the merger pending the outcome of these
negotiations."
Erickson concluded by saying, "While we still want to reach an
agreement and are hopeful that a labor disruption can be avoided,
as a result of this development the company will implement its
contingency plans to mitigate the impact of any work stoppage."