Aero Collective Bargaining Agreement

April 8, 2021

Aeromexico announces a collective agreement “Due to Aeromexico`s force majeure situation, it has called for an end to the wage dispute as well as individual agreements with a number of pilots and flight attendants to take into account the company`s new operating reality,” the airline said on January 11. Aeromexico had until 31 December 2020 to enter into a contract with its unions. When he couldn`t, there was extra time that was supposed to end on January 7. Again on that day, the two sides did not agree. Aeromexico had to ask Apollo for a new extension, scheduled for January 27. Aeromexico, ASPA and ASSA reaffirmed their willingness to continue discussions and find programs to enable the airline to reduce costs. Nevertheless, the clock is ticking and Aeromexico is unlikely to have more time for a third lap if there is no agreement before January 27. Due to the nature of a COVID-19 insolvency procedure, Aeromexico must meet certain strict requirements. If the Mexican airline fails to reach new agreements with its unions, it risks jeopardizing its future. “At the same time, it will continue to use all the tools at its disposal to avoid moving from the current financial restructuring situation to a liquidation situation, resulting in the loss of the source of employment that affects thousands of direct and indirect jobs,” she adds.

Yet, five days after the second extension, the airline appears to be deadlocked with two of its four unions. These unions are pilots (ASPA) and cabin crew (ASSA). “This force majeure situation has forced Aeromexico to reduce its workforce due to the decline in its regular operations,” he adds. Shortly after Aeromexico published its petition on the Mexican Stock Exchange, the two unions reacted. Last June, the airline sought insolvency protection in a U.S. court, days after it publicly stated it would not do so after the coronavirus pandemic decimated air traffic around the world. In recent weeks, it has negotiated with its unions to restructure the company and meet requirements to access fresh capital. The COVID-19 crisis really affected Aeromexico.

The airline grew from 20.68 million passengers in 2019 to 9.48 million in 2020; annual rate of 54.2%. This led to Aeromexico`s most recent decision. The airline said both said they did not receive an official notice from Mexican labor authorities. ASPA stated that Aeromexico had no legal reason for this type of petition. Meanwhile, the Cabin Crew Union stated that they must first receive notification before developing a legal strategy. Yesterday, Grupo asked Aeromexico for permission from the Mexican Labour Agency to terminate collective agreements (CBAs) with two of its four unions. The airline asserts that the end of CBAs is necessary for its sustainable future, as it has not been able to successfully conclude the negotiations necessary for its Chapter 11 bankruptcy. Let`s take a closer look.

“Aeromexico will continue the voluntary financial restructuring process in an orderly manner under Chapter 11, while continuing to provide services to its customers and provide its suppliers with the goods and services necessary for operations,” the airline said.