Dispute Arises Between Flugvirkjafélag Íslands and Air Atlanta Over Employment Practices
The Icelandic Aircraft Mechanics Association (Flugvirkjafélag Íslands) has expressed dissatisfaction with Air Atlanta, an Icelandic airline, due to its limited employment of aircraft mechanics as salaried employees. According to Óskar Einarsson, the chairman of the association, out of 40 Icelandic aircraft mechanics working abroad for Air Atlanta, only four are salaried employees while the rest are contractors. These contractors include staff at the crew leasing company Airborne in Malta. In contrast, the 21 aircraft mechanics working for Air Atlanta in Iceland are salaried employees.
The practice of combining contractors and salaried employees is a common arrangement in the aviation industry worldwide. Einarsson stated that the union has exhausted all efforts to persuade Air Atlanta to convert more of the contractors into regular employees. “We have explored all avenues to bring the company to the table to increase the number of employees under a salaried contract. This has been completely rejected and has not proceeded as we had hoped,” Einarsson remarked. The issue was discussed in the news analysis program “Þetta helst” today.
Broader Criticism of Air Atlanta’s Operations
Air Atlanta’s practices have been a subject of discussion in three recent episodes of the program “Þetta helst.” The airline, which operates 17 aircraft through Icelandic and Maltese companies, conducts charter flights under the banner of other airlines outside of Iceland and engages in freight transportation. It is particularly recognized for its pilgrimage flights to and from Saudi Arabia on behalf of a local airline.
A Dutch pilot, Sjoerd Willinge Prins, who was contracted by Air Atlanta, shared in an interview how the company treated him after he fell ill while working in Africa. Furthermore, the working conditions of Indonesian and Malaysian flight attendants employed by Air Atlanta via Airborne in Malta have been brought to light.
Following the first episode on Air Atlanta last week, numerous complaints have been received from various sources about the company’s employment practices. A recurring theme in the coverage and feedback is Air Atlanta’s increasing reliance on hiring staff as contractors, including pilots, flight attendants, and mechanics, to cut costs. Meanwhile, it has been reported that Air Atlanta’s owners have amassed significant profits in recent years, distributing ISK 23 billion in dividends to shareholders over the past five years.
Air Atlanta’s Response to Allegations
Baldvin Már Hermansson, CEO of Air Atlanta, has denied allegations of “sham contracting” practices. Both the Aircraft Mechanics Association and the Airline Pilots Association have argued otherwise. Hermansson stated to “Þetta helst” that contractors at Air Atlanta work as “independent contractors for the companies under standardized and recognized agreements with crew agencies.” He further emphasized that “Air Atlanta does not engage in sham contracting. The arrangement of combining contractors and salaried employees is well-known and common in the aviation industry worldwide.”
Analysis and Implications
The ongoing controversy surrounding Air Atlanta highlights a significant issue within the aviation sector: the balancing act between cost efficiency and fair employment practices. While the use of contractors is a widespread practice, it raises questions about job security and employee rights. The financial success of Air Atlanta juxtaposed with its employment practices may suggest a need for greater scrutiny and potential regulatory intervention.
As global industries continue to evolve, the tension between traditional employment contracts and modern contractor-based models will likely persist. This case serves as a reminder of the importance of maintaining ethical standards and transparency in employment practices, especially in industries as critical as aviation.