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Photo: An Avianca 787 on the tarmac at José María Córdova International Airport near Medellín in Colombia. (Credit: Avianca)

Avianca Grants Backpay to Pilots Retroactively to April 2017 as Mandated by Arbitration Ruling

Posted On December 30, 2017
By : Jared Wade
Comment: Off
Tag: ACDAC, Arbitration, avianca, Avianca S.A., aviation, ministry of labor, mintrabajo, Pilots Strike

Following an arbitration ruling by a Colombian court that was overseen by the Colombian Ministry of Labor, Avianca said in a statement that it has agreed to grant the mandated wage increase and extended benefits to pilots as decreed by the ruling body.

The Bogotá-based airline noted that it would honor the raise and benefit provisions retroactively to April 1 in response to the ruling in a labor dispute with its main pilots union, ACDAC, that dates back to the early fall and led to a massive pilot strike that severely disrupted operations and grounded tens of thousands of flights.

As a “principle of equality,” said the carrier in a statement, the backpay and extended benefits will be granted to all of pilots and co-pilots of Avianca S.A. in Colombia, not only the roughly 700 members of the ACDAC union who went on strike.

The carrier maintains, however, that the arbitration agreement is not final and noted that it has filed a legal action to annul the ruling. But because it is not disputing the salary aspects of the decision, merely other regulatory issues, the financial provisions for pilots have been met already, according to Avianca.

Photo credit: Avianca

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Jared Wade is an editor at Finance Colombia. He is a Bogotá-based journalist with 20+ years of experience covering topics including business, financial services, Latin America, and sports. You can contact him at jared.wade(at) financecolombia.com.
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