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V-c. (Source: Edward B. Shils. In Labor Law Journal, vol. 15, No. 3 (March 1964), pp. 143-176)

Industrial Unrest

in the Nation's Airline Industry

By EDWARD B. SHILS

HIS ARTICLE will attempt to explore the reasons for labor unrest in airlines by treating the following areas in this study.

THIS ARTICLE will to athes in ons study.

Fractional Bargaining.-A multiplicity of unions in airlines contributes to labor unrest and work interruptions. This stems in part from the fact that the airlines were put under the Railway Labor Act in 1936. "Craft" and "class" determinations for appropriate bargaining units encouraged the formation of additional craft unions, but discouraged the formation of industrial unions. The Railway Labor Act covering the nation's railroads served as a model for the airlines, and this transferred to the airlines the same weaknesses which have recently been pointed out by the Report of the Railroad Commission.1

Mergers. The competition of the nation's airlines for passenger traffic has become very keen and a number of carriers have been appealing to the CAB for permission to merge in order to avoid proliferation of traffic. As in the railroad industry, the carriers believe that mergers will permit operating economies necessary to continue their heavy investments in the newer jet equipment.

Changing Technology.-The unions while appreciating the advantage of changing technology have become very competitive in the same way that the firemen and the engineers are competing for survival on the nation's railroads. Unions fight mergers and amalgamations, and make extreme demands for security in the face of changing technology.

The Railway Labor Act of 1926 as Amended.—The Railway Labor Act will be analyzed as it contributes to labor unrest in the industry. For the most part, carriers have been bound by decisions arrived at

'Report of the Railroad Commission, Washington, D. C., February 1962, Superintendent of Documents, 324 pages.

under the Act, while unions have been found to ignore emergency board recommendations.

Mutual Assistance Pact
by Carriers Facing Strikes

For years, airlines have been plagued with strikes, threats of strikes, walkouts, work interruptions, etc. as the Railway Labor Act has failed to maintain labor peace in the airline industry. In 1955 the flight engineers participated in a 51-day strike at United Airlines. In 1960 a strike at Continental Airlines lasted 93 days. Eastern Airline's flight engineers went out on strike June 23, 1962 and are still out on strike although the airline is operating. In the early days of the Eastern strike the carrier was hard hit. In the three-month period from June 23, 1962 to September 17, 1962 Eastern Airlines had an operating loss of $23,000,000 while operating on a restrictive basis. Eastern began to operate 100 per cent in September 1963 by using pilots trained to replace the flight engineers. The net loss to Eastern was only $7,600,000 since the carrier received $15,800,000 in aid from other airlines under a mutual assistance agreement. The other airlines in the mutual aid pact included American, Braniff, Continental, Northwest, Pan American, Trans World and United.

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has been around 75 millions. Aid received by struck airlines, since the agreement went into effect totalled $31,840,000 and cut the net strike loss of the airlines involved to $42,920,000.”

The largest previous loss under this agreement was that sustained by American Airlines in its 1958-59 pilot strike which amounted to a net loss of $8,000,000 after reimbursement.

In November 1963, the debate over strike insurance was still raging before the CAB. Six AFL-CIO unions representing airline employees urged the CAB to disapprove the airlines' agreement, a form of strike insurance. They charged that its effect had been to worsen labor relations and to increase the number and severity of

strikes.

The CAB appeared to be taking the position that the original 1958 agreement was sound, but that the later amendments were contrary to public interest. The original agreement required airlines which took "windfall" business because of a strike to refund these profits-provided the strike resulted from the union rejection of a Presidential Emergency Board recommendation for a settlement. More recently the airlines in the group had broadened the agreement to cover all strikes, regardless of cause and had added a provision for an assessment on the participating airlines, if the "windfall" rebates did not equal 25 per cent of the struck company's normal operating expenses. Fighting the entire agreement were the Air Line Pilots, Machinists, Flight Engineers, Railway Clerks, Transport Workers and Air Line Dispatchers.

Although joining the pact for another year, United Airlines President W. A. Patterson, had previously told his board of directors that United,

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labor relations policies of some carriers so opposed to your own, then it's time to take action to protect your own interests. . . . Since United entered the strike insurance pact, United had paid out $8,000,000 on issues that United had specifically settled with

the unions involved."

Machinists at United Ready to Walk Out Before Christmas 1963 While the hearings were underway, however, United appeared to be in a position where a Christmas strike of machinists would take place closing down an airline which carried 25 per cent of the nation's traffic. The IAM had set December 19, 1963 as the strike deadline for nearly 13,000 workers employed at United mechanics and ground crewmen. A Presidential Emergency Board was also appointed to cover similar issues raised by the machinists with Braniff, Continental, Eastern, National, Northwest and Trans World Airlines.

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United appeared to follow out Mr. Patterson's contention because on December 18, 1963 a settlement was reached with the machinists through frantic last-minute bargaining. The new contract at United ended 20 months of negotiations and reviews and resulted in a new contract providing 39 cents per hour. This ended the threat of a Christmas strike at United. Strikes of machinists at the other airlines were averted for a 60-day period by the appointment of the Presidential Board. The chances for a settlement with the machinists at these other airlines appear somewhat brighter in view of the United settle

'AFL-CIO News, November 9, 1963.

In July 1963, American Airlines signed an agreement with the Allied Pilots' Association. Under this new agreement the work month of pilots was cut from 85 to 75 hours with no reduction in pay. ALPA unsuccessfully attempted to block the new agreement in the United States Circuit Court of Appeals. On September 16, 1963

ment. The open door to the settlement at United was reached when the company agreed to rehire 24 former employees who had been fired after a wildcat strike in August 1963.

The United case points up an interesting aspect of the operation of labor relations under the Railway Labor Act. The strike of the 13,000 employees at United was to come off after the union had rejected the recommendation of a Presidential Emergency Board, whose recommendations had been approved by the Company. After this impasse, the guide lines were ignored and a settlement reached by negotiation and collective bargaining.

FRAGMENTATION OF COLLECTIVE BARGAINING

Few Airlines

Many Labor Contracts

As of June 30, 1962, 28 airlines operating in the United States had a total of 286 collective bargaining agreements on file with the National Mediation Board which administers collective bargaining in airline under the Railway Labor Act.

Fourteen unions represented various crafts and classes and constituted the fragmented picture which makes collective bargaining so difficult in the airline industry. Recently, an election at American Airlines resulted in an insurgent pilots' group taking over from ALPA; so now there are 15 union groups. Exhibit No. 1, which follows, provides the names and symbols for these volatile union groups. the appeals court affirmed an August 12, 1963 ruling of a United States District Court which had discussed the union's complaint against American and the new Allied Pilots Association, on account of lack of jurisdiction. The Allied Pilots Association plans to integrate the flight engineers into a single union for both at American Airlines.

Designation

ALEA
ALCEA

ALDA

ALPA

ALSSA

ATDA
BRC

CWA

FEIA

IAM

IBT

IGFA

TWU
UAW

EXHIBIT NO. 15

Craft Unions in the Airline Industry

June 30, 1962

Airline Labor Union

Air Line Employees Association

Air Line Communication Employees Association
Air Line Dispatchers Association

Air Line Pilots Associations, International

Air Line Stewards & Stewardesses Association, International
Air Transport Dispatchers Association

Brotherhood of Railway & Steamship Clerks, Freight Handlers,
Express & Station Employees

Communications Workers of America

Flight Engineers International Association

International Association of Machinists

International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America

International Guild of Flight Attendants

Transport Workers Union of America, Airline Division
International Union, United Automobile, Aircraft, Agricultural
Implement Workers of America

Exhibit No. 2 explains the number of different unions with which a particular airline must bargain. A walkout by a single small craft union can close down an immense airline.

For example, Trans World Airlines bargains with ALPA (pilots), FEIA (flight engineers), TWU (navigators), ALDA (dispatchers), ALSSA (stewardesses and pursers), ALEA (radio operators), IAM (mechanics) and IAM (clerks, stock, stores, fleet and passenger service employees).

Pan American World Airways, Inc. bargains with ALPA (pilots), FEIA (flight engineers), ALDA (dispatchers), TWU (stewardesses and pursers), TWU (mechanics), BRC (clerks, office stores, fleet and passenger service) and IBT ( stock and stores employees).

28th Annual Report of the National Mediation Board, June 30, 1962, Superintendent of Public Documents, Washington, D. C.

These two airlines have many similar international responsibilities yet their labor situations differ. Both have ALPA (pilots) and FEIA (flight engineers). TWA employs navigators (TWU) while PAA does not. Both have ALDA (dispatchers). Pan American contracts with TWU for stewardesses and pursers while TWU contracts with ALSSA. TWA has a contract with ALEA (radio operators) while Pan American does not. Pan Am's passenger service employees are with BRC while IAM represents employees with similar duties at Trans World Airlines. Lastly, IBT covers stock clerks at Pan Am while IAM covers these employees at TWA. Other airlines have similar variations.

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