Question
The contract between the pilot's union and an air carrier has reached its amendable date. Company management decides that unless pilot salaries are immediately reduced
The contract between the pilot's union and an air carrier has reached its amendable date. Company management decides that unless pilot salaries are immediately reduced by 25%, the company will be unable to compete effectively against its major competitor (which has the advantage of using cheaper nonunion labor).
a. What procedure must the company follow before it can start issuing smaller paychecks to its pilots? Why?
b. In the first conference between company management and union representatives, the management negotiator states: "There is no alternative to this 25% pay cut. It is not negotiable. We're not even going to talk about alternatives. Take it or leave it." Is this legal? What recourse does the union have if the company takes this position at this stage?
c. If the carrier reduces pilot paychecks without first going through the entire procedural process that you described in your answer to part a, above, what can the union do about it?
d. The carrier is following the prescribed procedures, but some of the pilots are so angry that the company would even ask them for this concession that they start a "wildcat" strike (without the union's authorization). The carrier needs these pilots to return to work to meet the company's commitments. What can the carrier do about this wildcat strike?
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