CS-07 · Labour Relations & Union Negotiation

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Process Flow Diagram (BPMN)

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L4 Process Steps

Step	Step Name	Role / Swim Lane	System	Input	Output	KPI	Dec?	Exc?
Phase 1 1.1	Monitor CBA amendable date and trigger opening	Director, Labour Relations	SAP SuccessFactors	Current CBA contract dates, calendar alert at 180-day threshold	Opening trigger memo; formal Section 6 notice preparation initiated	Opening notice filed ≥180 days before CBA amendable date; 100% of contracts tracked in SuccessFactors	N	N
1.2	Benchmark labour costs against peer carriers	Labour Economist / Compensation Analyst	Power BI	Current pay scales from SAP SuccessFactors; DOT Form 41 peer carrier filings; IATA airline cost data	Labour cost benchmarking report (cost gap vs. Delta, United, American, Southwest)	Data currency ≤90 days old; peer set covers ≥5 major carriers; report delivered ≥150 days before amendable date	N	N
1.3	Model financial impact of proposed contract changes	VP Finance / Labour Cost Modeller	SAP S/4HANA FI/CO	Benchmarking report; current headcount, pay grades, and FTE data from SAP SuccessFactors	Financial impact model with ≥5 pay scenarios, NPV over contract term, and cost-per-ASM sensitivity analysis	Model covers ≥5 scenarios; labour cost projection accuracy within ±2% of actuals at year-end; model delivered 120 days before amendable date	N	Y
Phase 2 2.1	Form cross-functional management negotiating team	Chief People Officer / VP Labour Relations	Microsoft SharePoint	Board/CEO negotiation parameters; legal counsel engagement; financial model from Step 1.3	Negotiation team charter; defined mandate authority limits; war-room SharePoint site stood up	Team constituted ≥120 days before target opening session; team includes Legal, Finance, Operations, and HR representation	N	N
2.2	Develop management opening proposals and costing	Labour Relations Manager	Ironclad CLM	Benchmarking report; financial model; operational requirements from Flight Operations and Crew Planning	Management opening proposal document with article-by-article positions; cost envelope per article	Proposal reviewed by outside labour counsel within 10 business days; FAR Part 117 and ICAO fatigue regulation compliance verified for all scheduling provisions	N	N
2.3	Obtain board approval of negotiation mandate	CEO / Board of Directors	SAP S/4HANA FI/CO	Draft opening proposal; financial model with cost ceiling; outside counsel legal review sign-off	Board-approved negotiation mandate with cost ceiling and fall-back positions	Mandate approved before first bargaining session; cost ceiling grounded in verified FI/CO labour cost baseline	Y	N
Phase 3 3.1	File Section 6 notice and open formal bargaining	VP Labour Relations / Union President	NMB Case Management Portal	Board-approved management proposal; union's Section 6 notice received	Bargaining docket opened in NMB portal; first session date confirmed; ground rules agreed	First bargaining session convened within 30 days of mutual Section 6 notice exchange	N	N
3.2	Conduct iterative proposal exchange and counter-proposals	Labour Relations Manager / Union Bargaining Committee	Ironclad CLM	Opening proposals from both parties; session minutes; ground rules agreement	Redlined contract drafts per session; session tracker; consolidated open items log	Open items log reduced by ≥10% per bargaining month; no previously agreed article reopened without written consent of both parties	N	Y
3.3	Track tentative agreements and maintain open issues log	Labour Relations Coordinator	ServiceNow HR	Session minutes; articles agreed (TA) and disputed articles from each bargaining session	TA log (articles agreed with effective dates); open issues register with union and management positions per article	TA log updated within 24 hours of each session; open issues register shared with both parties within 48 hours	N	N
3.4	Assess bargaining progress and declare impasse if warranted	VP Labour Relations	Power BI	Open issues register; session count; timeline vs. target; financial model thresholds	Impasse declaration to NMB, or continued bargaining directive with revised target milestones	≥75% of articles TA'd before NMB referral; target contract duration ≤24 months from opening notice to ratification	Y	N
Phase 4 4.1	Request NMB mediation and establish case docket	VP Labour Relations	NMB Case Management Portal	Impasse declaration; unresolved articles list with positions documented	NMB case docket opened; assigned mediator confirmed; first mediated session scheduled	NMB application filed within 5 business days of impasse declaration; first mediated session convened within 45 days of NMB acceptance	N	N
4.2	Conduct NMB-mediated bargaining and resolve open articles	VP Labour Relations / NMB Mediator / Union President	Ironclad CLM	NMB mediator briefing package; remaining open articles; financial parameters	Additional TAs on mediated articles; mediator recommendations; or NMB proffer of arbitration if impasse persists	Open articles reduced by ≥50% within 90 days of mediation start; full TA reached before proffer of arbitration where possible	Y	Y
Phase 5 5.1	Draft and execute full tentative agreement	Labour Relations Manager / Legal Counsel / Union Bargaining Committee	Ironclad CLM	All TAs from bargaining and mediation sessions; mediator-brokered language; financial model final scenario	Fully executed tentative agreement document (all articles); implementation date schedule	Legal review completed within 15 business days; zero unresolved ambiguous provisions; implementation timeline agreed before union ratification vote	N	N
5.2	Conduct union membership ratification vote	Union President / Bargaining Committee	ElectionBuddy	Signed TA; union member roster from SAP SuccessFactors; voting eligibility rules	Ratification vote result (pass/fail with percentage); formal ratification notice to management	Voter turnout ≥60%; ratification threshold >50% of votes cast per union bylaws; result certified within 5 business days of vote close	Y	Y
Phase 6 6.1	Implement ratified agreement in HR and payroll systems	HR Systems Manager / Payroll Manager	SAP SuccessFactors	Ratified agreement with effective dates; retroactive pay calculation if amendable date predates ratification	Updated pay scales, work rules, and benefits configurations in SuccessFactors; payroll cutover completed; retro pay processed	All pay changes live within 30 days of ratification; retroactive pay (if applicable) paid within 60 days; payroll error rate <0.1% of affected employees	N	Y
6.2	Distribute contract and conduct manager training	Labour Relations Manager / HR Business Partners	Microsoft SharePoint	Final executed contract; implementation guidelines; manager briefing deck	Contract published to employee self-service portal; manager training completion records in SAP SuccessFactors LMS	Contract accessible to 100% of covered employees within 14 days of ratification; ≥90% of frontline managers trained within 30 days; training completion tracked in SuccessFactors LMS	N	N
6.3	Monitor grievance filings and manage compliance	Labour Relations Coordinator / HR Business Partners	ServiceNow HR	Employee or union grievance filings; relevant contract provisions; prior arbitration precedents	Grievance case log; Step 1/2/3 resolution decisions; arbitration referrals with legal brief	Step 1 grievance response within 10 business days; ≥70% of grievances resolved at Step 1 or 2 without arbitration; arbitration spend <$500K per year per contract group	Y	Y

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Process Attributes

Identification

Process IDCS-07

L1 DomainCorporate Support Functions

L2 ProcessHuman Resources

L3 NameLabour Relations & Union Negotiation

L4 Steps17 across 6 phases

Decision Gates5 (all with iteration loops)

Exceptions6 documented

Swim Lanes (Roles)

Director, Labour Relations

Labour Economist / Compensation Analyst

VP Finance / Labour Cost Modeller

Chief People Officer / VP Labour Relations

Labour Relations Manager

CEO / Board of Directors

VP Labour Relations / Union President

Labour Relations Manager / Union Bargaining Committee

Labour Relations Coordinator

VP Labour Relations

VP Labour Relations / NMB Mediator / Union President

Labour Relations Manager / Legal Counsel / Union Bargaining Committee

Union President / Bargaining Committee

HR Systems Manager / Payroll Manager

Labour Relations Manager / HR Business Partners

Labour Relations Coordinator / HR Business Partners

Systems & Tools

SAP SuccessFactorsPower BISAP S/4HANA FI/COMicrosoft SharePointIronclad CLMNMB Case Management PortalServiceNow HRElectionBuddy

Key Performance Indicators

Monitor CBA amendable date and trigger openingOpening notice filed ≥180 days before CBA amendable date; 100% of contracts tracked in SuccessFactors

Benchmark labour costs against peer carriersData currency ≤90 days old; peer set covers ≥5 major carriers; report delivered ≥150 days before amendable date

Model financial impact of proposed contract changesModel covers ≥5 scenarios; labour cost projection accuracy within ±2% of actuals at year-end; model delivered 120 days before amendable date

Form cross-functional management negotiating teamTeam constituted ≥120 days before target opening session; team includes Legal, Finance, Operations, and HR representation

Develop management opening proposals and costingProposal reviewed by outside labour counsel within 10 business days; FAR Part 117 and ICAO fatigue regulation compliance verified for all scheduling provisions

Obtain board approval of negotiation mandateMandate approved before first bargaining session; cost ceiling grounded in verified FI/CO labour cost baseline

File Section 6 notice and open formal bargainingFirst bargaining session convened within 30 days of mutual Section 6 notice exchange

Conduct iterative proposal exchange and counter-proposalsOpen items log reduced by ≥10% per bargaining month; no previously agreed article reopened without written consent of both parties

Airline-Specific Risks & Pain Points

Under the Railway Labour Act (RLA), contracts do not expire — they become 'amendable'; status quo obligation means outdated terms can persist indefinitely if airline fails to file timely, freezing modernisation of scheduling systems and work rules

DOT Form 41 labour cost data is lagged 6–12 months; actual competitor total compensation packages (profit sharing, equity, per diem) are often not disclosed until SEC filings or union leaks, skewing benchmark modelling

Multi-year contract costing requires fuel price and ASM growth assumptions that are highly uncertain; modelling errors >5% have triggered mid-contract re-opening demands and resulted in $100M+ unbudgeted labour cost overruns at major US carriers

Conflicting priorities between Operations (scheduling flexibility), Finance (cost ceiling), and HR (retention) create an incoherent management position; union negotiators routinely exploit internal inconsistencies to extract additional concessions worth 1–3% of contract value

Airline ops constraints (FAR Part 117 rest rules, ICAO fatigue regulations, irregular operations pay) must be precisely reflected in scheduling and duty-time contract language; ambiguous drafting creates compliance liability and exposes carrier to FAA enforcement action

Boards often set unrealistic cost ceilings based on prior-cycle assumptions or competitor announcements rather than current market data; mid-negotiation mandate revisions require additional board sessions, causing 3–6 month delays and signalling weakness to union

Inputs / Outputs

Primary InputCurrent CBA contract dates, calendar alert at 180-day threshold

Primary OutputGrievance case log; Step 1/2/3 resolution decisions; arbitration referrals with legal brief

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