World Air, owner of World Airways, provides transportation for the U.S. military and also flies cargo and charter flights. The airline said a prolonged strike could result in the loss of some customers.
World Airways today disclosed the terms of a proposed three-year pilot contract that was rejected Saturday morning by an International Brotherhood of Teamsters (IBT) negotiating committee. Week-long talks between the company and the pilots’ negotiating team ended after a 30-day cooling-off period set by the National Mediation Board (NMB) expired at midnight Friday, Jan. 27, 2006.
“The first provided a 10 percent signing bonus and a pay increase of 3 percent in the first year and 4 percent annually for each of the next two years. The other option offered a 7 percent signing bonus and a 5 percent pay increase in the first year, followed by 3 percent annual increases for each of the next two years. Given the circumstances in the airline industry today, we believe we provided an attractive, comprehensive offer that addressed the major concerns expressed by the pilots during negotiations.”
Other provisions in the contract offer included:
• A commitment to add Boeing 747s to the World Airways fleet
• Qualified furlough protection for 90 percent of current pilots for the duration of the contract
• Preferential hiring at other World Air Holdings subsidiaries
• The addition of training pay
• Doubling guaranteed days off to 12 per month, coupled with a new volunteer system for additional flying
• Doubling basic life insurance
• Continued profit sharing
• Increasing the company contribution to retirement plans
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“We came here to protect the future of our World Airways pilot group by bargaining in good faith,” said Captain Luis Carmona, Executive Council Chairman of the World Airways Pilots’ union. “But the company once again has chosen to ignore the key issues that provide job security, retirement, insurance benefits and adequate compensation by coming to the table unwilling and unprepared to achieve a successful outcome to these negotiations.”
On December 28, 2005, the NMB notified the pilots' union they were in a 30-day cooling-off period because in the judgment of the Board “all practical methods” for resolving the dispute between the two parties has been exhausted.
This release from the board states that after 12:01 a.m. on January 28, 2006, the more than 400 pilots, who are members of Local 986 in El Monte, California, and World Airways, Inc. are free to exercise self-help—which can include a strike.
“The company has been forcing this train down the track for quite a while,” said Captain Brian Robinson, Executive Council Member and Strike Committee Chairman. “Because of their behavior at the table, we have been preparing for quite some time for our response after the 28th.”
The pilots’ concerns are for job protection, adequate medical and life insurance and genuine compensation increases—not those that are negated by increased benefit costs. The parties have been negotiating a new contract since June 2003, when the pilots’ current collective bargaining agreement became amendable.
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