Now that the FedEx and UPS pilots have ratified new labor agreements, RACCA carriers can breath a collective sigh of relief. During the negotiation of these two collective bargaining agreements, many regional cargo carriers were concerned that FedEx or UPS may be pressured into scope restrictions that would limit growth opportunities for feeder flying. The good news for RACCA members is that both FedEx and UPS fared well with respect to their domestic scope clauses.

The new FedEx contract establishes a scope clause restriction -- that includes a small exception for circumstances beyond its control -- which addresses aircraft with a maximum gross takeoff weight of 60,000 lbs. or less. This restriction states that such aircraft may not be substituted for an aircraft weighing more than 60,000 lbs. resulting in a furlough of any Federal Express pilot.

In contrast to FedEx's scope clause, UPS's scope negotiations focused on international, rather than domestic, flying. For example, UPS can no longer use subcontractors for its international operations in cases of economic infeasibility, but may use such subcontractors where common carriage is not available. Additionally, where the previous contract required all international flying with a payload of 12,899 lbs. or more to be flown in-house, this limit has been expanded to 19,000 lbs. Overall, neither of the new labor agreements should pose any significant barriers to domestic feeder flying, or to business opportunities for RACCA carriers.

Growth, of course, is the name of the game. The costs of doing business increase every year, and expanded flying and the increased revenue it generates is the path to a bottom line that is black, not red. However, carriers should take the proper precautions to accommodate such growth. Employers must not only have the financial and operational resources to support more flying and additional employees; they also need the tools required to handle the issues accompanying a larger workforce. A growing, financially stable carrier is an attractive target for unions. After all, unions are businesses, just like airlines. Their business is recruiting and representing employees, and labor organizations grow by adding new dues-paying members.

Think about it: Organizing and negotiating a first contract for airline employees is an investment since most unions do not collect dues until after the first contract is reached. Since organizing a workforce is an investment, the union -- just like any business -- wants to ensure they make a profit. Thus, growing, stable companies with a promising financial future are prime targets. After all, it does a union no good to spend money recruiting a group of employees if their company won't be around long enough for the union to collect any dues. 

Although the regional cargo carriers are largely a non-union group, the industry's growth is certain to place it on unions' radars. Think you're too small to catch a union's attention? Think again. Of the 19 union elections among aviation employees conducted by the National Mediation Board, the organization charged with overseeing union elections, between July and November of 2006, 11 involved employee groups with less than 150 employees. Five of the elections were held in groups of less than 10 employees. There is no such thing as too small.

Widespread union organizing is likely to be right around the corner. It looks as though James Hoffa will win his third term as general president of the International Brotherhood of Teamsters. Considering that Hoffa campaigned largely on a platform of aggressive organizing and that the Teamsters possess close ties to UPS, affiliated carriers are likely to attract the IBT's attention. But keep your eye on the rest of the alphabet soup, and don't expect other unions such as the IAM, TWU or ALPA to sit idly by while the Teamsters beef up their recruiting efforts.

With the FedEx and UPS pilot deals resolved and feeder flying likely to continue to expand, make sure your house is in order. The time to assess how vulnerable you are to unionization and to address employee issues is now, before a union drive begins. After all, an ounce of prevention is worth a pound of cure.