When a Louisiana company acquires the assets of another, interested parties typically enter written agreements that define the responsibilities and obligations of all parties involved in the transition. For instance, back in 2001, American Airlines took over Trans World Airlines (TWA), and included in the employee contracts were certain protections that secured captain positions for a number of former TWA pilots. A serious contract dispute has flared after an arbitrator recently ruled that those protections have expired.
In short, the jobs the former TWA pilots thought they would have within the new company structure are now slated to be handed over to American Airlines pilots. Thus, it has become a contentious employee versus employee situation. American Airlines says it does not wish to take sides in the issue but is willing to carefully review the recent arbitration rulings.
In the meantime, at least 85 former TWA pilots will be directly affected by the change. They are at risk for being demoted to first officers, who generally earn approximately $75 per hour less than captains. Captains with seniority also usually get first dibs on the best aircraft and most favorable working hours, perks that will undoubtedly be lost if the demotions take place.
When a contract dispute occurs that pits fellow employees against one another, it can cause production delays and co-worker discomfort. Most Louisiana workers want to address such issues as swiftly and thoroughly as possible in order to get things back on track and avoid stress at work. One way to do so is to seek assistance from an experienced business and commercial law attorney.
Source: The Dallas Morning News, “Dozens of American Airlines pilots face demotion, pay cut after losing contract dispute“, Conor Shine, Accessed on July 12, 2017