Tag Archives: collective agreement

Air Canada and the Teamsters reach agreement for a new U.S. employee contract

Air Canada (Montreal) has announced it has received confirmation from the International Brotherhood of Teamsters (IBT) representing the airline’s U.S.-based workforce that a new collective agreement reached February 4, 2015 has been ratified. The new agreement is in effect until June 30, 2019.

The IBT represents approximately 650 Air Canada airport, cargo and call centre employees based in the United States.

This agreement with the IBT follows the conclusion in February 2015 of a new agreement with UNITE representing Air Canada’s U.K. employees until 2019, and the conclusion in October 2014 of a new agreement with ACPA representing Air Canada’s pilots on collective agreement terms for ten years.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-211 C-FDRP (msn 122) departs from Los Angeles International Airport.

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Norwegian’s pilots end their strike after 11 days

Norwegian Air Shuttle (Norwegian Air Norway) (Norwegian.com) (Oslo) has announced the devastating strike by its pilots, represented by the Norwegian Pilots Association (NPU), is over after 11 days of strikes. The airline today is attempting to get back to a normal schedule and will transport the affected passengers.

Norwegian CEO Bjorn Kjos stated “Norwegian has gone far to get a solution to the conflict which lasted for 11 days”. According to the company (translated from Norwegian);

“For Norwegian it has been important to enter into contracts that give the board and management the right to continue to build a modern group structure that makes the company competitive internationally. It also has been central to the negotiations to not sacrifice the commercial management and the ability to adapt the company in an industry that is constantly changing. The company has introduced the collective defined contribution pension even for pilots, a reduced Loss of Licence (LOL) insurance and some increased flexibility in working hours.

The Scandinavian pilots have received a new collective agreement with conditions that remain among the best in the industry. The agreement has been concluded with the pilot companies they are now employed. Norwegian has also sent a special employment guarantee for all pilots who are employed in Scandinavia today. Such a guarantee is unique in Scandinavian workplace and in a competitive industry like the aviation industry. Employment guarantee is the collective agreement and applies until October 2017.”

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. A dramatic photo of Boeing 737-86N LN-NOJ (msn 37884) landing at volcanic Tenerife Sur (TFS) in the Canary Islands.

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Norwegian’s pilots continue to strike as talks fail

Norwegian Air Shuttle (Norwegian Air Norway) (Norwegian.com) (Oslo) continues to face a strike by its pilots after overnight mediated talks on a new collective agreement failed. The strike today enters the eighth day. The strike by its pilots, represented by the NPU and labor group Parat, will continue indefinitely. As a result Norwegian is canceling today all flights in Norway and Sweden and most flights between the Scandinavian capitals.

Norwegian issued a statement (translated from Norwegian):

“Norwegian has submitted several proposals that provide all the Scandinavian pilots job security, employment guarantee for three years, to keep their good wage conditions and not the least, their ties with the parent company. Therefore it is extremely sad that it was not possible to reach an agreement with Norwegian Pilot Union (NPU) and Parat with the national mediator. The strike continues, unfortunately indefinitely.

Norwegian deeply regrets that the strike will continue and that travelers, employees and others are affected. After many hours of negotiations on Friday night to Saturday, both sides failed to reach a solution. Norwegian wants an end to the strike and has gone a long way economically to end the strike and bring peace to the Group. The company has submitted written guarantees to the NPU on key points that job security, job security, and to become attached to the group.”

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-81D LN-NOR (msn 39412) completes the final approach into beautiful Tenerife Sur (Tenerife South Airport) in the Canary Islands.

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Aeroflot extends its collective bargaining agreements with it employees

Aeroflot Russian Airlines (Moscow) has extended its collective bargaining agreement with its employees through 2017. The company issued this statement:

Aeroflot management and airline employee trade unions have successfully concluded negotiations that extend the collective bargaining agreement currently in place for the period 2014 through 2017. The collective agreement calls for a wide range of benefits for employees, irrespective of union membership.

Despite the challenging economic environment in Russia, the parties determined it was essential to keep in place all benefits, subsidies and guarantees included in the prevailing collective agreement. The trade unions have maintained the crucial role they have long held in facilitating labor relations. The agreement was signed by the United Representative Body of Aeroflot employees.

The collective agreement will remain in force through December 1, 2017. The range of benefits laid out under the collective agreement is unprecedented in the airline industry. To date the expenses incurred by Aeroflot to maintain these benefits exceeds 3 billion rubles a year.

Employees receive attractive and high salaries that are regularly re-indexed, and in addition receive additional payments (paid annual leave, awards upon retirement, paid public holidays, etc.).

The collective agreement calls for the following benefits:

Adding up to 14 days of holiday time (increasing total annual paid leave to 42 days);
Medical care (treatment at Aeroflot’s own Medical Centre, payment for treatment at other medical facilities, subsidised prescriptions);
Expense-paid holidays in sanatoriums (in 2014 employees enjoyed holidays and sanatorium treatments in Russia and abroad: Crimea, the Mineralnie Vody region of the Caucasus, the southern coast of the Baltic Sea, the Krasnodar region, Slovakia, Israel, the UAE and Turkey;
Non-state pension fund payments;
Company-provided automobiles;
Subsidised air tickets for employees and their families;
Reimbursement of children’s pre-school expenses;
Corporate trainings.
A number of key benefits continue for employees after they have retired from the Company.

Aeroflot has always valued healthy lifestyles for employees, and for that reason leases exercise facilities on their behalf.

Approximately 70% of the cost of employee benefits are allocated to on-board personnel, the airline’s most valued group of employees. In addition to high salaries in line with those at the leading international airlines, pilots receive:

The most holidays in the industry, 70 days off (whereas European carriers typically give pilots 28 days);
Comfortable accommodations when spending the night away from the pilot’s home airport;
Minimum three-star hotel accommodation;
Expense-paid holidays in sanatoriums (in addition to the standard company options, a special program is available to pilots and their families in the Czech Republic);
Per-diem based on average salaried day for days spent on routine medical check-ups;
In the event a pilot leaves the Company due to physical inability to carry out his duties, a one-time payment is made equivalent to 20%-100% of his annual salary;
Injury compensation of USD 5,000-10,000 in the event of health problems;
Non-state pension fund payments (through a dedicated pension plan, “Golden Anchor”)
Subsidised airline tickets, including on high-demand routes, for pilots and their family members.

The current JSC Aeroflot collective agreement was first signed in 2005. The agreement was the result of extensive collective bargaining with JSC Aeroflot by the leading airline employee union, First Trade-union Organisation, of which more than half of all Aeroflot employees are members. The collective agreement was renewed twice, in 2008 and 2011, without modifying the benefits received by employees.

JSC Aeroflot employs approximately 18,000 people in Russia and abroad and is the leading employer in the Russian aviation industry.

In other news, Aeroflot on October 26 Aeroflot is relaunching Moscow — Tbilisi and Moscow — Chisinau service.

Aeroflot will provide daily flights to the capital of Georgia on Airbus A320s from Sheremetyevo Airport Terminal D.

Daily flights to Chisinau will be operated on Airbus A320s from Sheremetyevo Airport Terminal D.

Copyright Photo: SPA/AirlinersGallery.com. Airbus A320-214 VP-BRX (msn 3063) departs from London’s Heathrow Airport.

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Finnair and its pilots agree on a new collective labor agreement

Finnair (Helsinki) has issued this statement:

The Association of Support Service Industries (PALTA) and the Finnish Air Line Pilots’ Association (SLL) have reached a new collective labor agreement for Finnair’s pilots. The new collective labor agreement comes into effect on February 1, 2014 and it is in line with the central Pact for Employment and Growth. The three-year contract includes a crisis clause similar to the ones in the collective labor agreements which were reached with other employee unions this fall. According to the crisis clause, in the coming months Finnair will negotiate with SLL on cost savings. If an agreement on the savings is reached by June 13, 2014, Finnair will offer pilots job security for two years.

“The collective agreement period with the pilots was coming to an end in January, and it was natural to agree to terms similar to those reached with other employee unions during the fall”, says Finnair’s Chief Operations Officer Ville Iho. “During previous negotiation rounds the pilots have shown understanding for Finnair’s situation and have been ready for solutions that increase cost effectiveness. Discussions about savings are never easy, but I’m confident that together we will find required savings.”

The savings negotiations will begin on January 9, 2014.

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A319-112 OH-LVD (msn 1352) in the Oneworld scheme taxies at Zurich.

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