The Truth About Non-consensual Labor Pacts

Tim Nelson

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Jan 5, 2003
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Bartlett
There are uneducated opinions or subtle manufacturing that have floated a company plan to:
A. enter bankruptcy
B. draw up non-consensual labor pacts
C. Get financing and live happy ever after.

Such talk is nonsensical rubbish.

To be sure, A....could happen and even your management has mentioned it.
But if B happens then you may forget about C. No financial institution will give favorable financing to your airline in a volatile labor situation where an employee group can legally "wildcat", strike, or resort to other legal self help methods. It just won't happen.

For a closer look, look at Pan Am. The Pilots settled, but the Teamsters didn't agree to a contract and Pan Am was allowed to force it on them anyways. However, the IBT was also allowed to strike in this situation but chose not to strike and instead stayed on the job as the RLA permits them to. Pan Am tried desperately to get financing but each financial institution said they simply would not give financing if there was no security in the form of a signed labor contract to protect the financial firm's investment. In short, no institution is going to drop a Billion dollars on a situation where thousands of workers could strike whenever they wanted. Are you kidding me?

There was even a video [with Pan Am as the model] put out explaining the devastating affects a non-consensual contract has on financing that airlines need. And the positive affects a signed agreement has.

Remember, Non-consensual contract = no financing. You can't bypass thousands of hard working workers who built your company.

OTOH, If your company needs to save money then the CWA and IAM put together plans that put annual savings between $100 million-$200 million. So far I have seen no response from your company other than to mention bankruptcy.

regards,
 
The bluster about BK and abrogating contracts is straight out of the union buster playbook. Big talk, NO walk. Just like the last 12 months. Management, including Lakefield have had plenty of time to do something about the business plan and "transform." BUT THEY HAVEN'T. WHY????? Could it be that it's all just been a lead up to the final scare to get labor to acquiese to ANYTHING?? The sad part is management's BS isn't even good BS. Their numbers don't even add up. Lakefield doesn't want a JB, SW, or even a HP contract . . . . he wants A LOT less than that and he knows he needs it to support a sort-of, semi-hub and spoke airline, dabble in international routes, and hugely bloated management costs. Not expecting employees to compensate for management blunders??? Well, who else is going to pay for them??? This is so ludicrous it's funny.
 

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