Tag: slowdown

Atlas Air and Southern Air Prevail in Appeals Court Ruling Against Teamsters Pilot Union

November 22, 2019 / WIL BALDWIN

PURCHASE, N.Y., Nov. 21, 2019 (GLOBE NEWSWIRE) — Atlas Air Worldwide Holdings, Inc. (AAWW) today confirmed that its subsidiaries Atlas Air, Inc. and Southern Air, Inc. have prevailed in another legal dispute with the union that represents its pilots in ongoing negotiations, the International Brotherhood of Teamsters.

The decision by the U.S. Court of Appeals for the Second Circuit affirms a March 13, 2018, decision by the Southern District Court of New York compelling the Teamsters to arbitrate whether the merger provisions in Atlas Air and Southern Air’s collective bargaining agreements apply to the bargaining process. Today’s decision, as well as two binding decisions by arbitrators rendered in favor of both Atlas Air and Southern Air this summer, have made clear that IBT must engage in the current Atlas Air and Southern Air collective bargaining agreements’ expedited and defined process for achieving a joint collective bargaining agreement.

In a separate labor-related decision rendered in July 2019, the U.S. Court of Appeals for the District of Columbia unanimously affirmed a federal district court ruling in November 2017 that ordered the union to stop an intentional and illegal work slowdown by Atlas Air pilots in violation of the Railway Labor Act. The unanimous ruling from a three-judge panel upheld the lower-court order that blocked the union from continuing to engage in improper activities such as excessive sick calls on short notice or refusing to volunteer for open time.

“With these decisions behind us, it’s time for the union to honor its obligations under the collective bargaining agreements and these binding decisions. Specifically, the union has an obligation to produce an integrated seniority list and engage in direct bargaining for a defined and limited period of time. In ongoing negotiations, the union has yet to provide us with a comprehensive economic proposal covering pay and benefits for evaluation. We remain committed to working collaboratively with union leaders to efficiently negotiate and complete the contract,” said William J. Flynn, Chairman and Chief Executive Officer, Atlas Air Worldwide.

For more information about the contract negotiations process and updates, please visit AtlasAir5YPilots.com and follow @AtlasAir5Y on Twitter.

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Canadian National Railway to Cut Management and Union Jobs

November 15, 2019 / WIL BALDWIN

Nov 15 (Reuters) – Canadian National Railway said on Friday it would cut management and union jobs, as the largest Canadian railroad operator grapples with an economic slowdown.

The company will lay off 1,600 employees in the United States and Canada, according to a report https://www.theglobeandmail.com/business/article-cn-rail-to-lay-off-1600-employees-amid-weakening-economy-trade by the Globe and Mail.

The announcement comes amid declining freight volumes as trade tensions have weighed on the North American economy.

The number of people to be laid off could rise if demand from rail customers continues to decline, the Canadian newspaper said, citing a person familiar with the matter.

Canadian National Railway spokesman said the action, which includes sending some of its employees on temporary leave, has already begun across its network.

(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Amy Caren Daniel)

Fiat Chrysler, Peugeot Owner PSA Once Again in Talks to Combine

October 29, 2019 / WIL BALDWIN

(Reuters) – Fiat Chrysler and Peugeot owner PSA are in talks to combine in a deal that could create a $50 billion (£38.88 billion) automaker, a source familiar with the matter said on Tuesday.

Fiat Chrysler shares rose sharply after news of the talks and ended up more than 7.5% in U.S. trading. The companies and the French government had no comment.

The Wall Street Journal first reported the discussions. PSA’s supervisory board was due to meet on Wednesday to discuss the potential merger, another source close to the matter said.

If a combination of Peugeot and Fiat Chrysler succeeded in overcoming political, financial and governance hurdles, the new enterprise would still face substantial challenges. Global automakers face the prospect of a slowdown in global demand coinciding with the most dramatic technology changes in a century.

Peugeot Chief Executive Carlos Tavares has predicted “ten years of chaos” for global automakers as regulators demand a switch to electric vehicles to reduce emissions linked to climate change.

Investors have speculated for several years that Fiat Chrysler was hunting for a merger partner, encouraged by the rhetoric of the company’s late chief executive, Sergio Marchionne.

In 2015, Marchionne outlined the case for consolidation of the auto industry and tried unsuccessfully to interest General Motors Co in a deal. Fiat Chrysler earlier this year broached a merger with French automaker Renault SA that ultimately collapsed.

Created when Fiat, under Marchionne’s leadership, bought control of Chrysler out of a U.S. government-backed bankruptcy in 2009, Fiat Chrysler has one of the global auto industry’s most profitable franchises in the Jeep sport utility vehicle brand and a money-spinning North American pickup and commercial van operation in Ram. Both would boost Peugeot, which does not sell vehicles in the U.S. market.

Peugeot and Fiat Chrysler could over time share engines and vehicle architectures, reducing capital spending and freeing up cash to invest in electric vehicles and emissions reduction technology required in Europe, China and other global markets.

Fiat Chrysler is under increasing pressure to invest in clean car technology. The company disclosed earlier this month that it faces a $79 million fine for falling short of U.S. fuel efficiency standards. Fiat Chrysler agreed to pay U.S. electric car maker Tesla Inc for credits to help it comply with European emissions standards until 2022.

Evercore analyst Arndt Ellinghorst in a note on Tuesday said a combination of Fiat Chrysler and Peugeot “should ignite more rational industry behavior around allocation of capital and this particular merger makes materially more sense than a potential FCA-Renault merger.”

Peugeot and Fiat Chrysler had discussed a combination earlier this year, before Fiat Chrysler proposed a $35 billion merger with Renault. At that time, Fiat Chrysler said a deal with Renault offered more advantages than a combination with Peugeot.

Fiat Chrysler Chairman John Elkann broke off talks with Renault in June after French government officials intervened and pushed for Renault first to resolve tensions with its Japanese alliance partner, Nissan Motor Co.

Following the collapse of the Renault merger plan, Fiat Chrysler CEO Mike Manley left the door open for talks with would-be partners. But he said the Italian-American automaker could go it alone despite mounting costs to develop electric vehicles and comply with tougher emissions rules in Europe, the United States and China.

Along with Jeep and Ram would come Fiat’s Italian operations, which have struggled in recent years. Fiat’s Mirafiori assembly complex in its home city of Turin has run below 50% capacity, with thousands of workers on temporary layoffs.

Overall, Fiat has 58,000 workers in Italy, where the government has long resisted mass lay-offs by large employers.

Peugeot’s Tavares dismissed the idea of a combination with Fiat Chrysler during a discussion with reporters at the Frankfurt auto show last month. “We don’t need it,” he said when asked whether he was still interested in a deal with Fiat Chrysler.

Tavares has moved aggressively to expand Peugeot, acquiring German auto brand Opel from General Motors Co for $2.6 billion in 2017. Since then, he has overseen a turnaround at Opel.

Fiat Chrysler already has a commercial vehicle partnership with Peugeot.

(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Maju Samuel, Richard Chang and Dan Grebler)

Strong SUV, Truck Demand Drive U.S. June Auto Sales Higher

July 2, 2019 / WIL BALDWIN

July 2 (Reuters) – Automakers including Fiat Chrysler Automobiles NV and Hyundai Motor Co on Tuesday reported a rise in U.S. sales for June, lifted by strong demand for sport utility vehicles and trucks.

Automakers have focused on selling the more profitable larger SUVs and trucks and had offered heavy discounts of up to 30% or more on their most popular models in June amid a slowdown in the broader market.

U.S. auto sales are slowing after a long bull-run that has satiated replacement demand.

Fiat Chrysler said its sales rose 1.9% to 206,083 vehicles in June, driven by a 45% surge in sales of its Ram trucks.

Hyundai said its sales rose 1.5% to 64,202 vehicles in the month, boosted by a 36% increase in sales of its Santa Fe sport utility vehicles.

GM and Ford are yet to report their sales numbers.

Mitsubishi Motors North America Inc said its June sales rose 10.5% to 12,317 vehicles due to an increase in sales of its seven-seater Outlander and Eclipse Cross SUV’s.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini Ganguli and James Emmanuel)

Southwest Ends Mechanics Dispute as American’s Heats Up

May 21, 2019 / WIL BALDWIN

CHICAGO, May 21 (Reuters) – Southwest Airlines Co’s mechanics union said on Tuesday its members had overwhelmingly voted to ratify a tentative contract agreement with the airline, ending seven years of labor negotiations fraught with legal disputes and flight disruptions.

The agreement came a day after rival U.S. carrier American Airlines Group Inc said it was filing a lawsuit against its own mechanics alleging an illegal slowdown aimed at disrupting operations to improve their position in labor talks, which began in 2015.

Analysts have highlighted labor issues as a main concern for airlines this year.

Mechanics at both American and Southwest have complained that the airlines are moving to outsource maintenance work that has traditionally been done in-house.

In a statement on its website, the Aircraft Mechanics Fraternal Association, which represents around 2,500 Southwest mechanics, said about 95 percent of its members had voted to accept the labor agreement.

Separately on Tuesday, American Airlines’ mechanics association said it was “ready and willing” to negotiate a fair contract.

“We would much prefer to be at the negotiating table than in a legal battle brought on by American,” the TWU-IAM Association said in a statement.

(Reporting by Tracy Rucinski Editing by Susan Thomas and Bill Berkrot)

American Airlines Files to Stop Alleged Maintenance Slowdown

May 20, 2019 / WIL BALDWIN

FILE PHOTO: An American Airlines Boeing 767-300ER aircraft takes off from Zurich Airport January 9, 2018. REUTERS/Arnd Wiegmann/File Photo

CHICAGO (Reuters) – American Airlines Group Inc said on Monday it has filed a lawsuit against two unions representing its mechanics, accusing the workers of an illegal slowdown aimed at disrupting operations to improve their position in prolonged labor talks.

In a statement, American said there had been 650 flight cancellations and more than 1,500 maintenance delays as a result of the alleged slowdown.

American has been in contract talks with the Transport Workers Union of America and the International Association of Machinists since 2015.

The unions did not immediately return a request for comment.

(Reporting by Tracy Rucinski; Editing by Marguerita Choy)

Wynn Resorts Shares Plunge 15% On Macau News

November 8, 2018 / WIL BALDWIN

Shares of Wynn resorts (WYNN) dove more than 15 percent Thursday after the casino operator’s chief executive said the company is seeing a “slowdown” at its Macau location.

Though CEO Matthew Maddox said results were strong during China’s seven-day Golden Week holiday, attendance since then has been “choppy” during the week and “sporadic” on the weekends.

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Wynn Resorts shares plunge 15% on Macau news