SkyWest Airlines 2010 Annual Report Download - page 19
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Employee Matters
Railway Labor Act
Our relations with labor unions in the U.S. are governed by the Railway Labor Act. Under the
Railway Labor Act, a labor union seeking to represent an unrepresented craft or class of employees is
required to file with the National Mediation Board (the ‘‘NMB’’) an application alleging a
representation dispute, along with authorization cards signed by at least 35% of the employees in that
craft or class. The NMB then investigates the dispute and, if it finds the labor union has obtained a
sufficient number of authorization cards, conducts an election to determine whether to certify the labor
union as the collective bargaining representative of that craft or class. Under the NMB’s usual rules, a
labor union will be certified as the representative of the employees in a craft or class only if more than
50% of those employees vote for union representation. A certified labor union then enters into
negotiations toward a collective bargaining agreement with the employer.
Under the Railway Labor Act, a collective bargaining agreement between an airline and a labor
union does not expire, but instead becomes amendable as of a stated date. Either party may request
that the NMB appoint a federal mediator to participate in the negotiations for a new or amended
agreement. If no agreement is reached in mediation, the NMB may determine, at any time, that an
impasse exists and offer binding arbitration. If either party rejects binding arbitration, a 30-day ‘‘cooling
off’’ period begins. At the end of this 30-day period, the parties may engage in ‘‘self help,’’ unless the
U.S. President appoints a Presidential Emergency Board (‘‘PEB’’) to investigate and report on the
dispute. The appointment of a PEB maintains the ‘‘status quo’’ for an additional 60 days. If the parties
do not reach agreement during this period, the parties may then engage in ‘‘self help.’’ ‘‘Self help’’
includes, among other things, a strike by the union or the imposition of proposed changes to the
collective bargaining agreement by the airline. Congress and the President have the authority to prevent
‘‘self help’’ by enacting legislation that, among other things, imposes a settlement on the parties.
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