Q: Is it possible to add a provision for negotiations delays, such as retro pay for the next negotiations or automatic increases if they fail to negotiate in a certain time?
No airline contracts currently include provisions for increases after the amendable date, or for retro pay in the subsequent agreement. Those provisions are negotiated as part of the subsequent agreement.
With this TA, management has a financial incentive to negotiate quickly for the JCBA if the merger is approved as the Company is unable to achieve the merger efficiencies until we have a joint contract and have provided management with a merged seniority list.
If the merger is not approved, we have a one year early opener to begin negotiating before the amendable date. Of course we will attempt to negotiate retro pay if negotiations extend past the amendable date.
Either way, the three year duration sets us up to continue getting a downline increase while negotiating the JCBA or the subsequent agreement if the merger is not approved.