Academic journal article Monthly Labor Review

Four-Year Dispute at Pan Am Ends

Academic journal article Monthly Labor Review

Four-Year Dispute at Pan Am Ends

Article excerpt

Ending a prolonged dispute, Pan American World Airways and the Teamsters signed a 39-month labor contract, covering 6,800 workers (reservations and passenger service employees, cargo agents, clerical and accounting employees, stock clerks, and nurses). The agreement modified the terms and conditions of employment imposed on the workers when the carrier unilaterally implemented its final offer on February 21, 1988. This occurred after an impasse was reached in negotiations and the carrier became free, under the Railway Labor Act, to implement its final offer. (The Railway Labor Act is the Federal law that regulates labor relations in the railroad and airline industries. The act provides voluntary (but binding) arbitration as a means to resolve labor disputes after an impasse is reached in negotiations. If one or both parties reject the offer of arbitration, a 30-day cooling off period is instituted. After expiration of the 30 days, the parties are free to use "self-help' - the union to strike and the carrier to lock out its employees or to implement its final offer.)

The newly negotiated agreement calls for six semiannual 3-percent wage increases for all employees, beginning in February 1991; the restoration of an 8 - percent wage cut and an immediate wage increase of 6-percent for employees who were on the payroll on February 21, 1988; and for employees hired after February 21, 1988, an immediate 40-cent-an-hour wage increase and advancement to the next highest step on the wage progression, as well as a reduction from 15 years to 10 years in the time it would like for them to reach the top of the wage progression. …

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