Aeromexico requests termination of ASSA, ASPA collective bargaining agreements

By Wendy Van Sickle

Columbus, Ohio, Jan. 11 – Grupo Aeromexico, SAB de CV said it has not been able to conclude negotiations with two of its unions, Asociacion Sindical de Sobrecargos de Aviacion de Mexico (ASSA) and Asociacion Sindical de Pilotos Aviadores de Mexico (ASPA) and that it has requested from labor authorities the termination of the collective bargaining relationship, as well as the individual agreements with some pilots and flight attendants to reflect the new operating reality of the company.

The acceptance by the unions of changes to the collective bargaining agreements proposed by the company are necessary to face financial operational and structural effects to the airline industry globally caused Covid-19, according to a press release issued Monday.

Additionally, the unions’ acceptance of the changes is essential to comply with commitments and objectives required by lenders of the senior debtor-in-possession credit facility and to comply with conditions to access the next disbursement under the DIP financing, Aeromexico said in the release.

The company said it obtained an extension until Jan. 27 of its deadline to come into compliance with the DIP financing conditions.

“However, the serious situation of the pandemic and the consequent continuation of the restrictions derived from the declaration of force majeure issued by government authorities, in Mexico and abroad, continue to reduce the demand for flights and undermine the company's finances,” the release states. “Aeromexico requires ongoing access in a fast and timely manner to the DIP Financing funds to meet its payments and commitments in the ordinary course of business with key suppliers, authorities, and contributors.”

The company said it will continue conversations with both of the unions during the extension period.

As previously reported, the company has satisfactorily concluded negotiations with the Sindicato de Trabajadores de la Industria Aeronáutica, Comunicaciones Similares y Conexos de la Republica Mexicana (STIA) and with the Sindicato Nacional de Trabajadores al Servicio de las Líneas Aereas, Transportes, Servicios, Similares y Conexos Independencia (Independencia), as previously reported.

Grupo Aeromexico, a holding company for commercial aviation, is based in Mexico City. The company filed Chapter 11 on June 30, 2020 under case number 20-11563.

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