LATAM Chile pilots are rejecting a poor contract offer and considering authorizing strike action.
The pilots’ union for LATAM Airlines Chile has voted to reject the COVID-era contract and authorize strike action. Voting to authorize strike action is not voting to strike immediately but gives the union’s governing body the authorization to call a strike if necessary.
LATAM attempting to exit bankruptcy
LATAM Airlines filed for Chapter 11 in the United States in 2020 due to the impact of the COVID-19 pandemic on the airline industry. According to a 2020 statement,
“LATAM entered the COVID-19 pandemic as a healthy and profitable airline group, yet exceptional circumstances have led to a collapse in global demand and has not only brought aviation to a virtual standstill, but it has also changed the industry for the foreseeable future.
“We have implemented a series of difficult measures to mitigate the impact of this unprecedented industry disruption, but ultimately this path represents the best option to lay the right foundation for the future of our airline group. We are looking ahead to a post-COVID-19 future…”
The airline’s management is currently working towards a more competitive cost structure and adequate liquidity to face the future, with approximately $10.3 billion in equity and close to $6.9 billion in debt – this should give the airline a chance to make investments.
One of those investments was that LATAM signed an agreement to increase its order size with Airbus this year. The South American airline will receive up to 100 Airbus A320-family based aircraft in the next decade. Those aircraft include five A321XLRs agreed under lease with LATAM recently.
Nonetheless, credible reports are arising that LATAM Chile management is not negotiating in good faith with their pilots, including from a US airline pilots union.
Support from Allied Pilots Association
Allied Pilots Association (APA), the union for American Airlines‘ pilots, issued a statement making clear that, “their fight is our fight.” The statement went on to allege that, while the union has made proposals, “LATAM Airlines Chile management has refused to negotiate.” APA President Capt. Ed Sicher went on to state;
“APA strongly supports these pilots in their efforts to secure a fair contract. They have unfortunately encountered what can only be characterized as bad-faith bargaining by airline management. As we have seen at our own airline at different points in our history, industrial action by the pilots may therefore be necessary to produce the desired result.
“Regrettably, what’s happening in Chile is far from unique. In fact, it’s an all-too-typical pattern: Workers sacrifice to help their companies in times of distress, only to be ignored once the crisis subsides.
“APA stands ready to support our SPL-represented colleagues at LATAM Airlines Chile in whatever way they deem necessary”
What are your thoughts on developments? Please share with civility in the comments.
