Amazon partner airline ATI, pilots agree on provisional 4-year contract

The union representing pilots at Air Transport International, an Ohio-based airline that operates more than 40 Boeing 767 cargo jets in Amazon’s (NASDAQ: AMZN) air logistics network, said Friday it has reached a tentative labor agreement with the company after more than five years of contentious negotiations.

The current contract was eligible to be updated in March 2021. The new labor agreement provides about $114 million in value for the company’s 550 pilots over its four-year span, including improvements to compensation, scheduling and retirement, the Air Line Pilots Association said in a news release.

ATI is a subsidiary of Air Transport Services Group, which is owned by private equity firm Stonepeak.

Under the deal, the pay rate will increase by almost 22% over its duration, including 11% in the first year, according to a fact sheet shared with FreightWaves. Pilots will also receive a ratification bonus and other conditional pay, higher per diem payments and other increases. Additional pay was also negotiated for instructor pilots.

Company retirement contributions will increase from the current 8% to 14% at date of signing and 15% in year two of the deal. The company will provide an additional 1% contribution each year if certain performance numbers are met, ALPA said. Pilots will also benefit from sweeping changes to vacation and scheduling practices that will result in more time off and better quality of life.

“This tentative agreement reflects not only our value to the company but is also the direct result of the unity and tenacity of every ATI pilot,” said Capt. Michael Sterling, chair of the ATI Master Executive Council, in the news release. “This agreement will go a long way to improving the lives of our fellow pilots.

ATI pilots are home-based and travel to various airports where they meet aircraft to which they are assigned.

The tentative agreement must still be approved by rank-and-file members. If ratified, the contract would go into effect on April 1. Voting opens March 18 and closes March 31.

“We are encouraged by the progress ATI and ALPA have made toward reaching a tentative agreement. Constructive engagement with our pilots is an important part of maintaining operational stability and positioning the airline for long-term success.  That stability supports our ability to deliver the level of reliability and service our customers expect, including Amazon, one of our largest partners,” said ATSG, in a statement to FreightWaves.

Union officials two years ago asked the National Mediation Board to declare an impasse in talks and allow the process to move to binding arbitration, accusing management of stalling until it finalized a contract extension with Amazon.