Airlines face strike at their largest catering company at the end of July

The National Mediation Board was reluctant to exempt American Airlines flight attendants from collective bargaining, but ten days ago it exempted the country’s largest catering provider and the two unions representing about 8,000 workers.

This release means that workers can strike at 00:01 on Tuesday, July 30.

If a strike were to occur, it would undoubtedly limit the supply of meals to passengers, but it is unlikely to significantly affect the ability of airlines to operate their flights on time.

Catering companies provide airlines with food and beverages and sanitation services. They prepare meals in kitchens near airports and load and maintain planes between flights. Gategourmet is the largest caterer both globally and in the United States, where it operates kitchens at 30 airports. (These airports are listed at the end of this story.)

The company is owned by two private equity firms based in Singapore. Its global headquarters are in Zurich and its U.S. headquarters are in Reston, Virginia. Its U.S. employees are mostly members of Unite Here, while some people working in transportation are members of the International Brotherhood of Teamsters.

Currently, the parties are in a 30-day “cooling off period,” a step in the NMB process that allows for additional negotiations before a release. These negotiations are called “public interest meetings” and, while they do not involve mediation, provide an additional opportunity to reach an agreement.

Gategourmet executives and negotiators are meeting with a NMB member today to avert a strike.

The main issues in negotiations are health insurance benefits and wages. When it comes to health insurance, “the cost is very high,” said Unite Here spokeswoman Meghan Cohorst. “Many workers can’t afford it,” and only 25 percent of workers are covered by the plan. When it comes to wages, “in some cities, workers are making $13 an hour: that’s not enough to live on,” said Cohorst.

Chris Kinsella, Chief Commercial Officer of Gategourmet North America, said, “Currently, the remaining negotiations focus on benefits. Gategourmet has submitted an industry-leading offer that includes an enhanced health insurance plan, but the union is unwilling to negotiate on this issue.

“Gategourmet will continue to negotiate seriously to reach a collective agreement that recognizes our valued employees,” Kinsella said. A Gategourmet spokesman said employees earn an average of more than $20 an hour.

Cohorst said: “These workers are an often overlooked part of the workforce that makes air travel possible. They provide passengers and crew with food, drinks and water. They demand fair compensation for their work.”

The precedent for a strike at Gate Gourmet is recent. About 800 workers at Toronto Pearson International Airport, members of the Teamsters Union, began striking on April 16 and returned to work on April 30. Disruptions were relatively minor.

“Air Canada and WestJet had to limit their food offerings during the two-week industrial action,” The Canadian Press reported. “When the strike began, Air Canada said short-haul flights would be most affected, while WestJet said the vast majority of its fleet could experience ‘inconsistent’ menu offerings.”

If a strike were to occur in the US, Gategourmet management staff would step in if possible. In addition, airlines would practice “double supply” whenever possible, meaning they would load food for outbound and return flights at airports where their kitchens are in operation.

Gategourmet supplies meals to American, Delta, United and Alaska, as well as several international airlines. It does not supply meals to Southwest, as it prepares its own meals. It also does not supply meals to Delta’s Atlanta hub or American’s Charlotte, Dallas and Miami hubs. In Chicago, Gategourmet supplies American, but not United. In Newark, Gategourmet supplies United.

Gategourmet’s main competitor is LSG Sky Chefs, which is also negotiating with Unite Here. Both companies’ contracts were able to be amended on December 31, 2018. Contract negotiations across the aviation industry have been delayed due to the pandemic. “We are still in the process of negotiating with Sky Chefs,” said Cohorst.

A spokesman for the American flight attendants, who are members of the Association of Professional Flight Attendants, said they are awaiting a response from the NMB regarding their request to be excluded from mediation.

Airports with Gategourmet kitchens include Atlanta, Boston, Chicago O’Hare, Chicago Midway, Columbus, Cincinnati, Denver, Dallas, Newark, Fort Lauderdale, Honolulu, Washington Dulles, Indianapolis, Jacksonville, Kennedy, LaGuardia, Las Vegas, Los Angeles, Orlando, Memphis, Miami, New Orleans, Kahului, Palm Beach, San Diego, San Antonio, Seattle, San Francisco, St. Louis and Tampa.