Southwest Airlines 2014 Annual Report Download - page 32

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generally do not expire, but instead become amendable as of an agreed date. By the amendable date, if
either party wishes to modify the terms of the agreement, it must notify the other party in the manner
required by the Railway Labor Act and/or described in the agreement. After receipt of the notice, the
parties must meet for direct negotiations. If no agreement is reached, either party may request the
National Mediation Board to appoint a federal mediator. If no agreement is reached in mediation, the
National Mediation Board may determine an impasse exists and offer binding arbitration to the parties.
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 a Presidential Emergency Board is
established to investigate and report on the dispute. The appointment of a Presidential Emergency
Board 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 airline’s imposition of any or all of its proposed amendments and the hiring
of new employees to replace any striking workers. Following the AirTran acquisition, the various
Company labor groups were covered by 18 different collective-bargaining agreements (“CBAs”).
AirTran Employees in certain labor groups have fully transitioned to Southwest Employees under a
single contract. The following table sets forth the Company’s Employee groups and the status of the
respective CBAs as of December 31, 2014:
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