February 14, 2021
To: Atlas Air and Southern Air Pilots
From: Jeff Carlson, Senior Vice President, Flight Operations
Our work continues to complete a new contract with our pilots. We have completed an important step and will now move forward to the next phase. I want to give you an update on where we stand and next steps.
Direct negotiations have now concluded with a significant portion of the contract resolved through Tentative Agreements (TAs). These sections are final and will not be subject to being re-opened.
Regrettably, we were not able to resolve all issues and remain apart on a number of important sections all of which have significant economic consequences. As it stands, the Union’s most recent proposal would more than double the Company’s current pilot operating costs, which simply isn’t sustainable for our business and your job security.
As a result, we will now move to the next phase and begin expedited interest arbitration to resolve the remaining open issues. The arbitration hearing will begin on March 17, and is scheduled through March 31.
The arbitrator was mutually selected by the Company and the Union and is a highly experienced airline labor arbitrator who has a reputation for evenhandedness and expertise in large scale negotiations like ours. Both parties will have the fair opportunity to present their respective positions. Following the hearing, the arbitrator will issue a final decision.
Once the arbitrator’s decision is issued, which the contract requests be done on an expedited basis, we will be able to move forward under a new contract that provides our pilots with a competitive compensation and benefits package that will position us all for continued growth.
We thank all our pilots for your ongoing commitment to our customers, our company and each other.