June 21, 2019

Negotiations Update

Dear Atlas Air and Southern Air Pilots, 

Yesterday, we concluded four days of scheduled negotiations with the Union during which we moved forward on a number of Articles as well as made some progress on Scope. 

Atlas Air Worldwide Chief Executive Officer Bill Flynn and Chief Operating Officer John Dietrich joined us for the important, productive dialogue regarding Scope with Union leaders. 

By the end of the scheduled sessions, we advanced discussions on Articles 8, 11, 13, 14, 25 and 26 specifically. We had hoped to see a comprehensive proposal, with economics from the Union negotiators, which we have asked Union leadership for repeatedly. We are still awaiting the economic proposal, plus the participation of the Union economist, which will allow us to move through the remaining Articles expeditiously. 

Last week we learned the outcome of the arbitration decision regarding the Southern Air management grievance. In sum, the arbitrator agreed with the Company that the merger provisions and related bargaining procedures within in the Southern CBA Section 1.B apply, and that the parties are obligated to promptly negotiate a new JCBA in connection with the merger. 

The arbitrator’s decision is a significant and positive step in reaching your next JCBA. Equally important is the fact that the arbitrator has directed the Union to provide the Company with a complete Integrated Seniority List within 45 days, which the CBA provides is then followed by nine months of bargaining. The CBA – once completed – cannot be implemented until there is a combined seniority list. As we are committed to completing these negotiations, the integrated seniority list is an essential, immediate next step in this important process. 

The arbitrator in the parallel Atlas management grievance has not yet issued his decision. We will continue to keep you updated. 

Thank you for your ongoing efforts on behalf of our customers. Your commitment to the highest levels of safety and customer service are appreciated and valued. 

Jeff Carlson, 
Senior Vice President, Flight Operations