In a controversial move, American regional carrier Republic Airways announced that it will impose a 100.000 dollars fine on pilots who resign before completing three years of employment with the company.
The change, which comes against a backdrop of a pilot shortage in the country, was included in the company’s new employment contract. Its main objective is to discourage potential resignations. However, it generated negative reactions from the union representing the pilots.
See also: Pilot shortage: Republic Airways asks to be exempt from flight hours requirements
The controversial conditions Republic Airways will impose on new pilots
According to a document published by the company, which operates flights for American Airlines, Delta and United, when signing their contract new pilots must assume that the company “has invested time, money, resources and access to confidential information, and in return will have a work commitment of at least three years”.
New employees must accept that resignation within this time period is a breach of contract. Therefore, if they resign before the three years are up, they will have to pay a sum of 100.000 dollars in compensation because, according to Republic Airways, the damages they would incur are “difficult, if not impossible, to calculate”.
Another of the new stipulations includes an incentive to move up to the position of captain after one year, depending on the number of flight hours in the first twelve months of employment.
As part of their contract, new employees will be required to enrol in the “Republic Airways New First Officer Career Advancement Programme Agreement”. If promoted, they must remain in the position for at least two years.
On the other hand, if a pilot resigns before completing three years of employment with the company, he or she will not be allowed to work for any other competing airline for one year, according to information from the AeroCrew website.
Union response
The text is being challenged by the Teamsters union, which represents Republic Airways pilots and alleges a violation of freedom, as the conditions are set and imposed by the company, and not negotiated directly with the pilots or their representatives.
The union remarked that the new contract forces pilots to “aggressively” pursue promotion to the position of captain and this means extra hours to each crewmember’s monthly flight schedule. If Republic Airways does not amend the contract, Teamsters could take legal action.
In recent months, both large and small airlines in the United States have been locked in a growing competition to hire new pilots. The situation has led to a race for offering better pay and working conditions.
