U.S. airline passengers could all soon be impacted by a labor dispute

The potential for flight disruption is significant.

Oct 5, 2023 - 07:30
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U.S. airline passengers could all soon be impacted by a labor dispute

It's an obvious understatement to say that the Covid pandemic that took shape globally in early 2020 disturbed the normal way of life on Earth.

Economically speaking, the public health crisis was a disaster across the board.

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One major example of an industry adversely impacted was air travel, which attempted to stay in business while suffering from massive restrictions on travel customers.

The aviation industry was forced to deal with a cascade of consequences. Passenger traffic plummeted, aircraft were grounded, and airlines endured enormous financial losses.

As travel restrictions were lifted during 2021, the popularity of air travel surged and the industry began to recover. That recovery still continues today.

In the U.S., amid this environment, pilots unions reached agreements with American Airlines  (AAL) - Get Free Report and United Airlines  (UAL) - Get Free Report.

But pilots at Southwest Airlines  (LUV) - Get Free Report are still negotiating their contracts. Their union voted to leave mediation in May, and is said to be at least starting the process of authorizing a potential strike.

A strike in the U.S. airline industry, even at one airline, would disrupt the travel industry in a number of ways. Prices would likely increase on other airlines and on trains. The cost of rental cars could be impacted.

Strikes at more than one airline would multiply this effect. This concern is significant, not just for pilots with unresolved contracts, but for the airlines' flight attendants as well.

Flight attendants confront labor disputes

Gathering increasing attention now are the working conditions of flight attendants at several major airlines.

At the Alaska Airlines  (ALK) - Get Free Report chapter of the Association of Flight Attendants (AFA), a strike is reportedly being threatened during the upcoming holiday travel season.

The flight attendants are asking for improved compensation for their time. For example, many are not paid for the duties they perform on the ground, such as boarding.

"This is about gaining back our lives, getting back our productivity, being able to put that in our pockets and not just sending that to Wall Street," AFA president Sara Nelson said, according to Meghna Maharishi of The Points Guy. 

A Southwest Airlines gate agent works with a passenger. 

Image source: William Thomas Cain/Getty Images

Current strikes at American auto manufacturers and Kaiser Permanente are said to be fueling support for union action.

The most recent airline strike in the U.S. was at Spirit Airlines  (SAVE) - Get Free Report in 2010 when its pilots protested the details of the carrier's pay increases.

But airline strikes are comparatively more difficult to organize than in other industries.

"While the National Labor Relations Act governs collective bargaining for most industries, the Railway Labor Act oversees the railroad and airline industries — and the law makes it difficult for airline employees to actually pull off a strike," Maharishi wrote.

"Because the federal government considers airlines an essential service for interstate commerce, negotiations between airlines and their employees are subject to a different process than most industries," she continued. "This particular process is tailored to avoid the prospect, as much as possible, of transportation grinding to a halt. The RLA also gives the federal government the authority to intervene in order to stave off a strike, as was the case late last year when American railway workers prepared to walk off the job."

The RLA, for example, requires a lengthy cooling off period that is highly regulated.

"When the Southwest Airlines Pilots Association asked to exit mediation in May, that didn't mean the union could immediately strike," Maharishi wrote. "Instead, they would have a 30-day cool-off period. They could only exit mediation if the National Mediation Board — the agency that oversees airline labor relations — were to grant the union's request."

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