Out of the Ashes: Options for Rebuilding Airline Labor Relations

The crisis in the airline industry and its labor relations system creates a window of opportunity to introduce changes that are essential to successful industry recovery. This paper summarizes the results of our research on labor relations conducted as part of the MIT Global Airline Industry Project and proposes a set of improvement initiatives. We recommend that (1) companies negotiate a "recovery compact" with its employees that includes plans for improving the workplace culture and climate and for expediting and resolving collective bargaining contract negotiations, (2) government leaders specify a window of time for industry and labor leaders to agree on changes needed in the Railway Labor Act, (2) the National Mediation Board engage industry and labor leaders in a process of transforming the agency's role to support the changes needed in the industry, and (4) industry, labor, and government leaders create a forum to support mutual learning and improvement.