Emmanuel OchayiIn a move that could disrupt Amazon’s extensive delivery network, pilots from Air Transport International (ATI), a crucial air freight provider for the tech giant, have voted to authorize a potential strike.
This development comes amid mounting concerns over low pay and an increase in turnover among ATI pilots, potentially impacting Amazon’s $117 billion logistics revenue.
ATI, responsible for operating half of the US aircraft in service for Amazon, has seen dissatisfaction brewing among its 640 pilots over wage stagnation compared to industry standards.
This discontent has fueled support for a strike, which, if realized, could introduce disruptions to Amazon’s delivery operations.
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The looming strike, supported by 98% of ATI’s pilot workforce, highlights a growing rift between the pilots’ union and Air Transport Services Group (ATSG), the parent company of ATI.
Federal law procedures, overseen by the National Mediation Board, will guide the strike’s trajectory, including a mandatory 30-day cooling-off period if an impasse is declared.
Amazon’s reliance on ATI’s air services is palpable, with 94% of the freight provider’s flying hours dedicated to fulfilling Amazon deliveries.
This dependency underscores the potential impact a strike might have on Amazon Air’s operations, which orchestrates over 330 daily flights in the US alone, facilitating transportation from fulfillment centers to airports.
ATI’s pilot attrition rate has soared, with over a third leaving this year alone, sparking concerns over diminishing service quality and wage discrepancies.
This discontent echoes a situation in 2016 when ABX Air pilots went on strike, albeit being deemed illegal by a judge, compelling the pilots to return to work swiftly.
As negotiations persist between the pilots’ union and ATI, the looming threat of a strike underscores the fragility of the relationship between the air freight provider and Amazon, heralding challenges for the tech giant’s expansive logistics network.
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