Airline Negotiations
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Submitted by zrmdfg on 02/01/2012 04:37 PM Flag This Paper
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Airline Negotiations
Labor Contract Negotiations Process in the Airline Industry
Due to the strain on the airline industry, contract negotiations take longer to negotiate and carriers frequently ask for concessions. Average negotiations take 1.3 years and more than half go into Federal mediation. “Recent work has demonstrated that carrier-level differences in the duration of contract negotiations are associated with the quality of labor-management relationship and, consequently, with airline productivity, customer service, and profitability” (VonNordenflycht 18). Growth rates among airlines are associated with the time of negotiations. The higher carriers tend to take longer. The financial condition of the carrier doesn’t seem to have an effect. Negotiations are not affected as much by economic conditions as they are by the relationship between management and particular organizations.
Airline contracts are governed by the Railway Labor Act (“RLA”). Contracts don’t have expiration dates but rather are amendable until both parties reach a new agreement. If negotiations come to a stand still, either party may ask for mediation. Existing contract provisions remain in effect during mediation. Airline negotiations have a long history of work stoppages, including sick-outs and work slowdowns. Settlements are frequently only reached right before strike deadlines.
The RLA has specific procedures for resolving minor and major disputes over bargaining agreements. For minor disputes, issues can be submitted to the National Mediation Board for arbitration. Strikes cannot be instituted for minor disputes. Major disputes affect the terms of the collective bargaining agreement. Federal Law prohibits airline employees to strike unless mediators proclaim an impasse. If the Board’s offer is rejected by either party, after 30 days, the union may institute a lockout or strike. Another option is the Presidential Emergency Board. This group is initiated by the President and consists...