SkyWest Inc: Respect for Freedom of Association and Collective Bargaining

WHEREAS: Freedom of association and collective bargaining are fundamental human rights under internationally recognized human rights frameworks. According to the International Labour Organization (ILO), “Freedom of association refers to the right of workers ... to create and join organizations of their choice freely and without fear of reprisal or interference.”[1]

The United States has seen a “revival of union power” leading to significant changes in employee contracts in multiple industries.[2] A Gallup poll found that 70 percent of Americans approve of unions, their highest approval rating in 60 years.[3] In line with this, several companies, including Southwest Airlines, United Airlines, American Airlines, and JetBlue, have taken meaningful steps to strengthen their policies and practices.

Should SkyWest’s brand be linked to anti-union rhetoric or practices, it risks losing customers. Moreover, the presence of unions has been positively correlated with low turnover, improved diversity, investment in training, and reduced legal and regulatory violations.[4] Conversely, companies that actively oppose unionization experience declines in productivity relative to those that are less opposed; “the overall negative effects are driven by manager’s or owner’s dislike of working with unions rather than economic costs of unions.”[5]

The Association of Flight Attendants-CWA has filed a federal lawsuit alleging that SkyWest funds an internal employee association, the SkyWest Inflight Association (SIA), intended to replace independent unionization.[6] SkyWest is alleged to have retaliated against employees seeking independent union representation and interfered with employees’ choice of union representatives, in violation of the Railway Labor Act.[7] The United States Department of Labor (DOL) is also seeking a declaration that SIA elections are void.[8]

SkyWest representatives have stated that, “SkyWest Airlines and SIA are separate organizations,” while the former president of SIA, Romero Malone, has stated “There is utterly no separation between management and the labor union, from the pay to the voter operating system.”[9]

Given this inconsistency, the Non-Interference Policy requested would provide investors with greater confidence that SkyWest is appropriately managing its relationship to labor.

BE IT RESOLVED: Shareholders request the Board adopt and disclose a Non-Interference Policy upholding the rights to freedom of association and collective bargaining in its operations, as reflected in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.

SUPPORTING STATEMENT: The Policy should contain commitments to:

Non-interference when employees exercise their right to form or join a trade union, including prohibiting SkyWest from undermining this right or pressuring employees seeking to form or join a company-hosted organization intended to represent employees;