WestJet looks to recruit Swoop pilots within company amid clash with union
WestJet Airlines Ltd.’s chief executive said the airline hopes to recruit pilots from its main line and Encore services to fly planes for its new ultra low-cost carrier Swoop, but it will hire externally if necessary — a move that the company’s new pilots union said it is against.
“I will say, first and foremost, that it is Swoop’s preference to hire as many pilots from WestJet and WestJet Encore as are interested in the career advancement opportunities that Swoop provides,” CEO Gregg Saretsky said in a conference call with analysts after the company reported fourthquarter results on Tuesday.
“That matter is in the hands of (the Air Line Pilots Association, International). It is a matter that is being discussed at the bargaining table.”
More than 1,400 WestJet pilots joined the Air Line Pilots Association (ALPA), an international pilots union, after 62 per cent of the 97 per cent of eligible pilots voted in May to unionize.
Saretsky said under WestJet’s existing contract with pilots, which is in place until a new agreement is ratified, there is a provision that will allow those interested in flying for Swoop to take a leave of absence and do so.
Those pilots would still be able to return to WestJet or WestJet Encore after flying Swoop planes, he said.
“If there are an insufficient number of pilots that would like to pass on the opportunity ... we have no shortage of pilot applicants from across the Canadian jet marketplace,” Saretsky said.
But Capt. Rob McFadyen, chairman of the WestJet unit of the Air Line Pilots Association, said the company has “not properly engaged” with the union when it comes to Swoop.
“ALPA has been given a strong mandate from our membership that planes owned by the WestJet company should be flown by WestJet pilots,” he said in an emailed statement to the Financial Post.
“ALPA has been eager and willing to negotiate on this and other important pilot issues, but WestJet has not properly engaged ALPA as the certified representative of the pilots who have helped build this airline over the past 22 years.”
Saretsky said the company wants to maintain one seniority list for all of its pilots, which includes both WestJet main line and Encore.
“We don’t know yet if ALPA intends to do that, so until that is clarified, we are offering the pilots the opportunity to move on a leave of absence to Swoop,” he said.
“But like Encore, Swoop will have different rates of pay and benefits which are commensurate with the ULCC space in which that carrier will compete.”
Chris Murray, an analyst with AltaCorp Capital, said the ongoing discussions between WestJet and its pilots union “presents some concern” when it comes to the launch of Swoop.
“It doesn’t seem as simple as just moving forward without any repercussions,” he said.
“However, the company suggested that it will meet the planned into-service date. We’ll have to see, but it’s an issue that presents some concern.”
When asked on the conference call by Murray about whether pilot recruitment could potentially delay the launch of Swoop, Saretsky said “absolutely not.”
“We will be airborne in June, one way or another,” he said.
Last week, WestJet began selling tickets for its ultra low-cost carrier, the first major step in the airline’s plan to build up the pricesensitive segment of Canada’s air travel market.
Edward Sims, WestJet’s vicepresident of commercial, told analysts on Tuesday that interest in Swoop is not coming at the expense of its main line operations.
“Clearly what we’re seeing is Canadians like low fares,” Sims said.
“It’s been six days since we went on sale, we’re tracking Swoop’s growth on an hourly basis, and we’ve seen no signs of cannibalization.”
WestJet will launch Swoop with three Boeing 737-800 jets flying between five destinations, before expanding to six aircraft in September and 10 jets in the spring.