Two pilots sued their union (ALPA) for negotiating pay cuts with a corporate takeover bidder without their consent. The Ninth Circuit ruled that unions have broad discretion to negotiate on behalf of members during corporate changes, even if individual members disagree. The court upheld the agreement because the union acted in good faith to protect pilot interests. For subcontractors, this means unions and contractors can negotiate protective agreements during ownership changes without needing approval from every individual member.
Unions can negotiate directly with prospective owners during takeovers if they believe it protects member interests—individual members cannot block these deals just because they disagree
Good faith negotiations during corporate transitions are protected, even if terms are unfavorable to some workers