(Updated July 15, 5 p.m. ET)
Cargo pilots at Western Global Airlines, which restructured last year under bankruptcy protection, this week asked the National Mediation Board to umpire contracts talks that have been stalled for two years, the Air Line Pilots Association announced. The company separately said the parties jointly filed the application for mediation.
Western Global Airlines has 110 active pilots, according to union figures, who are seeking their first contract since selecting ALPA as their bargaining representative in 2021. The roster reached a high of 204 pilots that year before the downturn in the cargo market, customer defections and the high cost of operating an aging fleet forced the Estero, Florida-based company to scale back. By mid-2023, when Western Global filed for bankruptcy, pilot levels dwindled to the high 90s.
Western Global has 12 aircraft in service – four Boeing 747-400s and eight tri-engine MD11s, according to the company – down from 21 on its operating certificate. One of its key customers is the U.S. Department of Defense.
The union said Western Global’s management is dragging out talks with delayed responses to contract proposals as well as a recent decision to backtrack on proposals and improvements discussed during the past year. ALPA previously said on its website that the company had become more collaborative in collective bargaining during, and after, bankruptcy. Pilots at Western Global complain that their pay rates lag those of industry peers.
“After months of delays, it’s clear that Western Global management needs intervention to keep the company on a course of good-faith bargaining,” said Greg Pinckney, chairman of the Western Global Master Executive Council under ALPA, in a statement. “We are asking the NMB to help us reach an agreement that recognizes the contributions our pilots have made to our company’s success.”
In addition to substandard pay, pilots at Western Global have often felt overworked because of high attrition levels and have endured a long period of uncertainty about whether the company would survive before exiting bankruptcy in December.
“Since its founding 10 years ago, Western Global Airlines has shown enduring appreciation and commitment to its pilots, who are highly respected integral members of the companywide team. WGA has always practiced a non-furlough and non-pay cut policy for all its employees, including during the financially challenging period in 2023. Furthermore, in addition to double pay for overtime, WGA granted all pilots retention bonuses during the Chapter 11 restructuring process,” the company said in a statement to FreightWaves.
“WGA has undergone significant changes during its restructuring last year, and 2024 constitutes a fresh start. WGA is committed to negotiating in good faith to reach a fair agreement that allows for the continued viability of WGA and ensures the job security of all of WGA’s employees.”
Contract talks for pilots at two other cargo airlines – Air Transport International and FedEx – are currently being facilitated by the National Mediation Board.
Western Global was able through restructuring to reduce its debt by more than $460 million and receive an injection of new capital to support ongoing business activity.
A Western Global Airlines official did not respond to an email seeking comment about the union’s request for mediation.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Twitter: @ericreports / LinkedIn: Eric Kulisch / ekulisch@www.freightwaves.com
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