Negotiations between airlines and their labor unions on these contracts  are conducted in accordance with the requirements of the Railway Labor  Act (RLA). The act was amended in 1936, after discussions with airline  labor and management, to include the airline industry and its labor unions. Length of Negotiations and Number of Nonstrike Work Actions Have Increased, While Number of Strikes Has Declined

In the 25 years since deregulation, airline contract negotiation lengths  have increased while the frequency of strikes has declined, but the number  of nonstrike work actions have increased. Also, all have a history of strikes and/or  court-recognized, nonstrike work actions. For example, the median length of time to  negotiate contracts at US Airways in the 1990s was 34 months. Of  the 16 strikes that occurred since 1978, 12 occurred prior to 1990, and 4  occurred subsequently. All six occurred since 1990. However, no studies  have yet synthesized such information for a thorough picture of a strike’s  impact on a community. Airline Strikes Have Had Negative Economic Impacts on Communities

With the reduction of air service stemming from an airline strike,  communities have experienced economic disruptions from a number of  sources. The department reports  the extent of potentially lost air service to hub and spoke cities of the  affected carrier, the number of passengers that would have no service if a  strike were to occur, possible financial impacts on the carrier, indirect  impacts on the national economy, and the mitigating and aggravating  factors on the impacts of a strike. Nonstrike Work Actions Have Greater Impacts on Passengers than Lengthy Negotiations

Our analysis indicates that passenger service has been affected more  adversely by nonstrike work actions than by an increase in the length of  negotiations. Generally, but not always, as negotiation periods increased,  there has been a slight decline in on-time flights. However, the impact of  these negotiations has been unclear, because the decline may also have  been affected by other factors such as poor weather, aircraft maintenance,  runway closures, air traffic control system decisions, or equipment  failures. By comparison, the 10 court-recognized, nonstrike work actions  more clearly resulted in negative impacts on passengers, as shown through  such measures as a decrease in the number of on-time flights, an increase  in the number of flight problem complaints, and a decrease in passenger  traffic. Congressional interventions do not involve the airlines. Appendix II: Objectives, Scope, and Methodology

This report examines the following three questions:    What have been the major trends of labor negotiations in the airline  industry since the industry was deregulated in 1978, including the number  and length of negotiations and the number of strikes, presidential  interventions to avoid or end strikes, and nonstrike work actions? What has been the impact of airline strikes on communities? We obtained our data from major U.S. airlines and  various labor organizations.
Why GAO Did This Study

Labor negotiations in the airline industry fall under the Railway Labor Act. Under this act, airline labor contracts do not expire, but instead, become amendable. To help labor and management reach agreement before a strike occurs, the act also provides a process--including possible intervention by the President--that is designed to reduce the incidence of strikes. Despite these provisions, negotiations between airlines and their unions have sometimes been contentious, and strikes have occurred. Because air transportation is such a vital link in the nation's economic infrastructure, a strike at a major U.S. airline may exert a significant economic impact on affected communities. Additionally, if an airline's labor and management were to engage in contentious and prolonged negotiations, the airline's operations--and customer service--could suffer. GAO was asked to examine trends in airline labor negotiations in the 25 years since the industry was deregulated in 1978, the impact of airline strikes on communities, and the impact of lengthy contract negotiations and nonstrike work actions (such as "sickouts") on passengers.

What GAO Found

Since the airline industry was deregulated in 1978, the average length of negotiations has increased, strikes have declined, and nonstrike work actions (e.g., sickouts) have increased. After 1990, the median length of time needed for labor and management at U.S. major airlines to reach agreement on contracts increased from 9 to 15 months. Of the 16 strikes that occurred at those airlines since 1978, 12 occurred prior to 1990, and 4 occurred subsequently. All ten court-recognized, nonstrike work actions and all six presidential interventions occurred since 1993. Airline strikes have had obvious negative impacts on communities, including lost income for striking and laid off workers, disrupted travel plans, and decreased spending by travelers and the struck airline. However, such impacts have yet to be thoroughly and systematically analyzed. The potential net impacts of a strike on a community would depend on a number of factors, such as availability of service from competing (nonstriking) airlines and the length of the strike. For example, of two recent strikes, one lasted 15 days and one lasted 24 minutes. GAO's analysis indicates that passenger service has been affected more adversely by nonstrike work actions than by an increase in the length of negotiations. Generally, but not always, as negotiation periods increased, there has been a slight decline in on-time flights. However, the impact of these negotiations has been unclear because the decline may also have been affected by other factors such as poor weather. By comparison, the 10 court-recognized, nonstrike work actions more clearly resulted in negative impacts on passengers, as shown through such measures as a decrease in the number of on-time flights, an increase in the number of flight problem complaints, and a decrease in passenger traffic.