Atlas Air Worldwide Accuses Pilots' Union of Work Slowdown
September 25 2017 - 3:52PM
Dow Jones News
By Imani Moise
Atlas Air Worldwide Holdings Inc. accused its unionized pilots
of intentionally slowing down work, causing "widespread and
significant" flight delays, in the latest labor dispute between a
union and an air-cargo carrier.
The company, whose airline subsidiaries deliver cargo for United
Parcel Service Inc., Deutsche Post AG's DHL, FedEx Corp. and
Amazon.com Inc., filed a preliminary injunction to get the
International Brotherhood of Teamsters to end what it calls an
illegal work slowdown aimed at disrupting its business. The
corporate parent of Atlas Air and Polar Air Cargo Worldwide said in
prepared remarks the union is engaging in a coordinated attempt to
disrupt service to gain an edge during ongoing contract
negotiations.
In a federal complaint filed Monday, Atlas claimed the union has
encouraged behaviors like calling in sick at the last minute,
refusing to work citing fatigue and refusing to work overtime. The
amount of last-minute sick calls jumped to 24% between October 2016
and September 20 from 14% during the same period a year
earlier.
The company said tactics like these contributed to an 83% surge
in flight delays over six hours since December.
The dispute may stoke concerns about a potential labor impasse
at the start of peak holiday shipping season. Last year, an airline
operated by rival Atlas rival Air Transport Services Group Inc.,
successfully got a federal judge to halt a pilot strike after the
work stoppage threatened to disrupt deliveries during the critical
holiday season.
"We value our commitment to our customers and the passengers and
cargo entrusted to us," said Atlas Air Worldwide Chief Executive
William J. Flynn in a statement. "We must protect the service
quality we provide to our customers."
Representatives from the International Brotherhood of Teamsters
didn't immediately have a comment. In the past, the union has
attributed the flight disruptions to a pilot staffing shortage.
Airlines and railroads fall under the U.S. Railway Labor Act,
which makes it more difficult for unionized workers to strike.
Under that law, contracts don't expire, and federal mediation is
mandated if the two sides can't come to an agreement. The mediators
also can call for a recess in negotiations if the two sides reach a
stalemate.
Shares in Atlas Air, up 27% so far this year, slipped 2.1% to
$66.15 during afternoon trading.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
September 25, 2017 15:37 ET (19:37 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Deutsche Post (PK) (USOTC:DPSGY)
Historical Stock Chart
From Jul 2024 to Aug 2024
Deutsche Post (PK) (USOTC:DPSGY)
Historical Stock Chart
From Aug 2023 to Aug 2024