The Railway Labor Act, at 76, the oldest federal law affecting labor-management relations, is what airline management and their unions follow during negotiations. While all steps of the procedure may be played out, an agreement between the Union and the Company can come during any of the steps described here - that agreement being subject to ratification by union membership.
Step 1: Intent To Change - Either the Union or Company must notify the other of an intent to change the contract at least 30 days prior to its ending date - and they must meet within ten days of the notification. At that time, they exchange proposed contract changes.
Step 2: Collective Bargaining - The Union and the Company must meet within 30 days of the first notice to change the contract. Collective bargaining begins at this point. Progress, or the lack of it, during this step determines whether it will be necessary to proceed with the other steps of the Railway Labor Act.
Step 3: Contract Becomes Amendable - Under the Railway Labor Act, contracts never expire, they continue as the "status quo" until amended. The Company may not change the contract and the Union may not engage in any job actions until all the steps of the Act have been completed and both parties are released.
Step 4: Mediation Options - Either the Union or the Company may choose to request the services of the National Mediation Board (NMB). If neither requests that option, the NMB can and may intercede and force both parties into mediation. This often happens when the talks are deadlocked or broken off.
Step 5: Mediation Mandatory - If the NMB intercedes, both parties must enter into the mediation process, and a mediator is assigned by the NMB. The mediator decides if negotiations are deadlocked and if either or both parties can proceed with other legal steps.
Step 6: Binding Arbitration - Binding arbitration may be proposed by the NMB if mediation fails. Binding arbitration requires both the Union and Company to agree to it. They must also agree upon a neutral arbitrator. The arbitrator makes a decision which is final and binding to both parties.
Step 7: Cooling Off Period - If either the Union or the Company refuse the NMB's offer of binding arbitration, both parties must observe a 30-day "cooling-off" period. If the President of the United States does not intervene in steps 8-11, then the whole process moves directly to step 12.
Step 8: Presidential Intervention - The NMB may at this time request the President of the United States to intervene due to "possible substantial interference with interstate commerce." The President, however, is not legally mandated to intervene.
Step 9: Fact Finding Board - The President may, at his discretion, establish an Emergency Fact Finding Board to investigate the dispute between the Union and the Company and make recommendations.
Step 10: Board Findings - If the Board is appointed, they must make their recommendations within 30 days. They may, however, ask either party for additional time to investigate. The President may also allow an additional 30-day extension for the Board to complete its investigation.
Step 11: Cooling Off II - After the Emergency Fact Finding Board makes its recommendations to the President, the Union and the Company must observe another 30-day cooling off period.
Step 12: Self Help - At the end of the 30-day cooling off period, the Union and Company are free of any legal restraint. The Company has the option of imposing its own work rules and wages. The Union has the option of accepting those rules and wages or election to strike.
