Republic Air says reaches tentative pact with pilots union
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[February 15, 2014]
(Reuters) — Republic Airways Holdings Inc <RJET.O> said on Friday
that it reached a tentative accord for a four-year labor contract
with the Teamsters union, which represents more than 2,200 pilots at
its Republic, Chautauqua and Shuttle America regional airline
The agreement, which is subject to approval by union members, comes
after nearly seven years of talks and includes pay raises, improved
work rules and a signing bonus, Republic said in a statement. A vote
by the union membership is expected in March, it said.
Republic's statement said the pay increases "will place Republic at
or near the top of its airline peers."
Dan Silbaugh, recording secretary with Teamsters Local 357, which
represents Republic pilots, declined to discuss pay and other
details of the tentative agreement, saying it had not been presented
to union members. Republic spokesman Peter Kowalchuk also said the
company would not disclose contents of the accord until the union
has shared it with members.
Indianapolis-based Republic said this week that its pretax income
would be reduced this year because it decided to cut its planned
flying due to a scarcity of qualified pilots.
The company's chief executive officer, Bryan Bedford, told Reuters
in an interview this week that the company had seen a drop in the
number of qualified applicants since U.S. Federal Aviation
Administration rules took effect last year that increased
flight-time requirements for pilots of commercial jets and cargo
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In a letter to staff, Bedford had also addressed the possibility
that not having a new collective bargaining agreement with pilots
could be hurting the company's recruitment efforts.
Silbaugh said a starting first officer at Republic could earn a
range of $17,000 to $24,000 a year, based on current pay scales.
Republic and the International Brotherhood of Teamsters Local 357
began contract talks in 2007. Negotiations with a federal mediator
ran from June 2011 to October 2012, and talks between the parties
resumed in November 2012 with a private mediator, Kowalchuk said.
Shares of Republic Airways were up 11 cents, or 1.25 percent, to
$8.93 in afternoon trading.
(Reporting by Karen Jacobs in Atlanta;
editing by Leslie Adler and Jonathan Oatis)
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