🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Alaska Air pilots authorize strike amid contract negotiations

Published 05/25/2022, 01:16 PM
Updated 05/25/2022, 02:37 PM
© Reuters. FILE PHOTO: An Alaska Airlines Boeing 737-400 plane is shown on final approach to land in San Diego, California April 4, 2016. REUTERS/Mike Blake
ALK
-

By Rajesh Kumar Singh

CHICAGO (Reuters) - Pilots at Alaska Air (NYSE:ALK) Group Inc have voted to authorize a strike if agreement on a new employment contract cannot be reached, their union said on Wednesday.

The Air Line Pilots Association (ALPA), which represents over 3,000 pilots at the Seattle-based carrier, said 99% of those who cast their ballots backed strike-authorization.

Alaska pilots, however, cannot walk off the job until the National Mediation Board grants them permission. The board will first have to determine that both the parties are at an impasse and further bargaining would not be productive.

This lengthy and complex process makes it rather difficult for airline workers to strike. The last pilot strike at a U.S. passenger carrier was at Spirit Airlines (NYSE:SAVE) in 2010.

Alaska said the vote would not impact its customers and operation as its pilots are not on strike.

"We remain committed to reaching a deal to provide an updated contract that is good for Alaska's pilots," the company said.

The vote, however, highlights growing labor tension in the U.S. airline industry. Almost all the major carriers are facing protests from their pilots, who are demanding higher pay and improvements in "fatiguing" schedules in their new contracts.

United Airlines is the only major carrier that has reached an agreement with its pilots on new contract.

The protests come at a time when the industry is grappling with staffing shortages after letting go thousands of pilots at the height of the coronavirus pandemic.

Alaska itself is battling a high attrition rate. In the first quarter, 27 of its pilots resigned prior to their mandated retirement date.

ALPA says the company is on track to lose 180 pilots this year to other carriers, as its pilot contract remains below the rest of the industry.

© Reuters. FILE PHOTO: An Alaska Airlines Boeing 737-400 plane is shown on final approach to land in San Diego, California April 4, 2016. REUTERS/Mike Blake

Staffing woes are also taking a toll on Alaska's operations, forcing it to cancel 4% of its flights this month.

Alaska Air and its pilots have been negotiating a new contract since the summer of 2019. ALPA has said the company has not "meaningfully" addressed its concerns related to job security and schedule flexibility.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.