WestJet CEO retires amid union woes
WestJet Airlines Ltd.’s president and chief executive Gregg Saretsky said he is retiring, effective immediately, an abrupt decision that comes in the midst of ongoing labour disputes and just months before the expected launch of its ultra-low cost carrier Swoop. In a statement Thursday, WestJet said Saretsky, 58, who stepped into the role of CEO eight years ago, had advised the firm that “the time has come for him to retire. “I am pleased with the continued growth and profitability we’ve achieved together,” Saretsky said in the statement. “With plans well underway for the launch of Swoop and the introduction of the 7879 Dreamliners on the horizon, as well as the great work WestJetters do each day, I’m confident WestJet will continue to grow to the next chapter and beyond.” WestJet’s board has appointed the company’s executive vicepresident of commercial Ed Sims as its new president and chief executive, effective Thursday. Sims joined the company in May 2017 after serving as chief execu- tive of New Zealand’s air navigation service provider Airways. He has also held senior leadership positions with Tui, Thomas Cook, Virgin Groups and Air New Zealand, overseeing the airline’s international wide-body business. WestJet shares ended the day down about 4.5 per cent on the Toronto Stock Exchange. The stock has gained just 4.4 per cent over the past five years, well behind the 72-per-cent advance of Air Canada and the 21-per-cent increase for the S&P/TSX Composite Index. WestJet also reduced its firstquarter guidance, citing irregular operations and severe weather. Chris Murray, an analyst with AltaCorp Capital, said the sudden change may have been affected by the ongoing labour issues between WestJet and its new pilots union, the Air Line Pilots Association, International (ALPA). “I think Gregg has always had a very aggressive if not somewhat antagonistic approach to dealing with the union issues,” Murray said. “Part of me wonders if him leaving isn’t perhaps a recognition on the part of the company that maybe they needed different leadership to carry it for- ward and build a more constructive environment.” Negotiations have grown tense over recent weeks, with both sides filing labour complaints, and the union calling for fellow pilot unions to impose a so-called “recruitment ban” on Swoop. This week, the Canada Industrial Relations Board sided with the pilots union and demanded WestJet cease and desist offering two-year leaves of absence that would allow pilots to fly for Swoop.
The CIRB decision also prevents WestJet from negotiating directly with bargaining unit members over the Swoop-related leaves of absence.