Originially from: World Arbitration and Mediation Review (WAMR)

Crisis Negotiations:
How Labor and Management can Best Navigate
Major Changes in the Midterm Contract Period
by Joshua M. Javits
[Mr. Javits is a mediator and arbitrator. He is the former chair of
the National Mediation Board. He also teaches on an adjunct
basis at Georgetown University Law Center. He can be reached
at (202) 719-2011 and jjavits@aol.com.]
The economic downturn and uncertainty about the future, made
deeper by the horrible events of September 11, have had a severe impact
upon unionized industries such as the airlines and their more than 730,000
employees. Virtually all of the major airlines face catastrophic shrinkage
in passengers and revenue. The airline industry has already furloughed
about fifteen percent of its workforce. It has also reduced fares, frequency
of service, and fleet size.
Some airlines are working together with their unions to make
adjustments to meet the changed—and still changing—circumstances.
Some have come up with creative responses and have been able to
implement them quickly. Others are having a much more difficult time
both communicating and finding accommodations that meet the needs of
both employees and the carriers.
Traditional Collective Bargaining Ineffective
Any labor management negotiation that occurs midterm in the
contract period and concerns such major issues with such high stakes is
unusual. The parties are used to negotiations for a new or amended
agreement that takes place every three to five years at a set, amendable
(expiration) date, in advance of which much planning, strategy, internal
discussion, polling, and analysis is conducted. Emergency midterm
negotiations, almost by definition, lack such a structured and deliberate
process.
Pilots like to say that flying involves ninety-nine percent dull
routine and one percent sheer terror—when something goes wrong. They
are extensively trained for just that one percent of the time. Similarly,
with major midterm contract negotiations, the parties’ history and
especially their relationship—their level of trust and understanding of each
others’ circumstances—strongly determine whether they will be able to
successfully navigate such intrinsically difficult negotiations. The stakes
are high. Successfully adapting to changed circumstances will make a
carrier stronger and put it in a more competitive position. Again,