Unions sue Republic Airways, Cape Air over contracts for new pilots
US regional carriers Republic Airways and Cape Air are being sued by their respective pilots’ unions for offering contracts that include financial penalties of up to $250,000 if pilots leave before completing their contracts. In a civil complaint filed on 9 June in the US District Court Southern District of Indiana, the Teamsters Local 357 and Local 1224 unions argue that the pilot contracts violate US labour laws, listing Republic Airways and Cape Air parent company Hyannis Air Service as defendants. A Cape Air captain pathway agreement, presented as an exhibit in the lawsuit, contains a clause that prevents pilots from flying for “any airline that is in competition with Republic for a period of one year” if they quit or resign before completing three-year contracts. The agreement also requires pilots who fail to work the full three years to pay the company $250,000 “not as penalty but as liquidated damages” incurred from training costs. “The lawsuit asserts the employment contracts are an attempt by the airlines to change pilots’ working conditions unilaterally, in violation of federal labour law under the Railway Labor Act,” says the Teamsters Local 357 union representing Republic pilots. Specifically, the lawsuit says that the regional airlines are effectively avoiding collective bargaining negotiation and depriving pilots their right to union representation. “That Republic and Hyannis Air are able to compel individual pilots to enter these oppressive employment agreements on pain of job loss simply illustrates the grossly disproportionate economic and bargaining power of carriers toward individual employees,” the lawsuit states. The Teamsters seek a judgement declaring the pilot employment agreements null and void, and an injunction prohibiting the airlines from “taking any action to enforce individual agreements”. The Teamsters also request an order directing Republic and Cape Air to “permanently refrain from seeking to enter such agreements with any pilot in the future”.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-06-13/unaligned/unions-sue-republic-airways-cape-air-over-contracts-for-new-pilots
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Unions sue Republic Airways, Cape Air over contracts for new pilots
US regional carriers Republic Airways and Cape Air are being sued by their respective pilots’ unions for offering contracts that include financial penalties of up to $250,000 if pilots leave before completing their contracts. In a civil complaint filed on 9 June in the US District Court Southern District of Indiana, the Teamsters Local 357 and Local 1224 unions argue that the pilot contracts violate US labour laws, listing Republic Airways and Cape Air parent company Hyannis Air Service as defendants. A Cape Air captain pathway agreement, presented as an exhibit in the lawsuit, contains a clause that prevents pilots from flying for “any airline that is in competition with Republic for a period of one year” if they quit or resign before completing three-year contracts. The agreement also requires pilots who fail to work the full three years to pay the company $250,000 “not as penalty but as liquidated damages” incurred from training costs. “The lawsuit asserts the employment contracts are an attempt by the airlines to change pilots’ working conditions unilaterally, in violation of federal labour law under the Railway Labor Act,” says the Teamsters Local 357 union representing Republic pilots. Specifically, the lawsuit says that the regional airlines are effectively avoiding collective bargaining negotiation and depriving pilots their right to union representation. “That Republic and Hyannis Air are able to compel individual pilots to enter these oppressive employment agreements on pain of job loss simply illustrates the grossly disproportionate economic and bargaining power of carriers toward individual employees,” the lawsuit states. The Teamsters seek a judgement declaring the pilot employment agreements null and void, and an injunction prohibiting the airlines from “taking any action to enforce individual agreements”. The Teamsters also request an order directing Republic and Cape Air to “permanently refrain from seeking to enter such agreements with any pilot in the future”.<br/>
