After soundly rejecting the company’s initial offer, WestJet pilots are voting on a new contract the airline hopes will pave the way for the expansion of its wide-body fleet and help stave off the looming threat of unionization.
In an interview, WestJet CEO Gregg Saretsky said voting is set to close Friday on the new tentative agreement. The company has said it needs a new deal with its pilots before it can expand its wide-body fleet and start doing more long-haul international flights. However, the company’s first attempt at a contract offer was rejected in November by 80 per cent of pilots who voted.
“I’m hoping we’ll have a new Christmas present on the 23rd,” Saretsky said. “A brand-new, five-year deal with our pilots that goes till 2022.”
The latest round of pilot negotiations at WestJet takes place against the backdrop of an ongoing unionization campaign.
The Air Line Pilots Association (ALPA), the largest pilot union in the world, has been asking pilots at the famously non-union WestJet to sign membership cards, a continuation of the work started by an internal group in 2015. At that time, 55 per cent of WestJet’s pilots said no to unionization in a vote, but ALPA — which represents major carriers such as Delta Air Lines Inc. and United Air Lines — brings significantly greater resources and experience to the campaign.
A simultaneous unionization drive led by an internal group and targeting WestJet flight attendants is also underway.
Saretsky said as the largest non-union company in Canada, WestJet represents a “big target” to organizations like ALPA. But he said he remains convinced unionization would harm the relationship the airline currently has with its employees, creating a system of “middle men” and “bureaucracy” that would get in the way of direct conversations between management and staff.
“This isn’t the first drive, it won’t be the last drive. At some point, will they be successful? They might, but I’m going to go down fighting to prevent the unionization of WestJet,” Saretsky said.
WestJet pilots reject effort to form union
The contract that was rejected by WestJet pilots in November would have offered more hourly pay for all pilots and higher pay for those who fly wide-body aircraft. Some analysts have questioned whether WestJet’s wide-body expansion plans will be economical if the pilots demand even more money to fly the bigger planes.
But Saretsky said the airline’s business model for long-haul flying — which includes more seats on planes, due to the absence of a traditional business class, and low fares to stimulate traffic — will give it a competitive advantage. He said the company has crunched the numbers and believes it can make a return of between 13 and 16 per cent on every new long-haul wide-body plane it brings into its fleet.
“Yes, operating costs on crew will go up. But our operations don’t make or break themselves based on what we pay our people,” Saretsky said.
WestJet began testing the wide-body waters in May, when it launched transatlantic service to London-Gatwick. Though the service was initially marred by mechanical difficulties that caused cancellations and delays, Saretsky said the problems have since been smoothed out and the route is selling well.
The airline is now in the market looking for additional used Boeing 767s to add to its current fleet of four, Saretsky said. Though he did not say how many planes the company is looking for, he said the first could arrive as early as spring and be in service within 8 to 12 months.
In addition, WestJet is in talks with both Boeing and Airbus for the provision of brand-new wide-body aircraft — either 787s or A330s — with a targeted delivery date as early as late 2018. Saretsky, who is on record as saying the Calgary-based airline has ambitions to fly as far afield as South America and even Asia someday, said he expects to announce new long-haul routes in 2017, with the start of service dependent on aircraft availability.
Saretsky said WestJet has grown so much in its 21-year history that there is no more room to expand domestically with its fleet of single-aisle 737s, and only limited opportunities remaining for its regional airline, Encore. He said that is the reason WestJet has its sights set on long-haul flying.
“Companies have to grow or die,” Saretsky said. “And growth comes from exploiting opportunities.”
Calgary Herald
