WestJet Faces New Strike Threat as Union Rejects Offer Again
In a fresh blow to WestJet Airlines, the union representing its maintenance engineers has once again rejected a revised offer and served a second strike notice, setting the stage for a possible work stoppage starting June 28. This comes just days after the union had called off an earlier strike and agreed to resume negotiations.
WestJet, owned by Onex Corp (TSX: ONEX), is locked in a contentious dispute with the Aircraft Mechanics Fraternal Association (AMFA), which represents WestJet’s Aircraft Maintenance Engineers (AMEs) and other technical operations employees. The union is demanding improved working conditions and higher wages.
The airlines’ latest proposal included a 22% pay increase over four years, which the airline described as an “industry-leading offer.” Despite this, the AMFA dismissed the offer, leading to the second strike notification within a span of just over a week.
“Receiving a second strike notification from the union after they mutually agreed with WestJet in front of the CIRB to return to the bargaining table in good faith is disheartening and unacceptable for our guests, employees, and the communities and businesses that rely on our service,” said WestJet President Diederik Pen in a statement.
The impending strike threatens to disrupt travel plans for over 70,000 passengers per day, especially significant as it coincides with the busy Canada Day long weekend. The airline had previously canceled 40 flights affecting 6,500 customers following the initial strike notice.
In anticipation of the potential strike, WestJet is taking measures to mitigate disruptions. These include preparing to operate a reduced schedule, managing changes and cancellations proactively, and offering flexible options for passengers who wish to make alternate arrangements.
“WestJet presented the union with its latest Canadian industry-leading offer. It was swiftly dismissed, and a strike notification issued, leaving us with no choice but to follow with a lockout notice to manage travel disruption to hundreds of thousands of guests,” Pen added.
The Canadian Industrial Relations Board (CIRB) is currently involved, with a ruling on first contract arbitration under section 80 of the Canada Labour Code still pending. This legal framework could play a crucial role in resolving the impasse.
Information for this story was found via Sedar, Reuters, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
