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Gate Gourmet reaches deal with union; no disruption expected next week

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Gate Gourmet reaches deal with union; no disruption expected next week
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Gary Leff Chief Financial Officer | View from the Wing

As bad as summer travel has been, between storms and the CrowdStrike outage which triggered a historic Delta Air Lines meltdown, air travel was slated to get worse again because major airline caterer Gate Gourmet was facing a worker strike starting this coming Tuesday.

American Airlines averted a flight attendants strike. The National Mediation Board (NMB) wouldn’t release cabin crew to self-help, and they got a deal done. The NMB did release these airline catering workers to strike, and their ‘cooling off period’ expired on July 30th.

A strike was imminent without a last-minute breakthrough in negotiations. That is exactly what happened.

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According to a source close to the matter but not authorized to speak, a long-term deal was reached. The parties should be announcing it soon. It is understood that the final issues involved health care, and that Gate Gourmet agreed to contribute to a union-run health care plan.

While Gate Gourmet – originally Swiss Air catering, and owned by Singapore’s state investment fund and Singaporean private equity, which acquired it from China’s HNA Group in 2019 – isn’t the only caterer, other companies wouldn’t be able to pick up across-the-board slack.

Airlines were preparing not to have meal service or even beverage service, to double cater out of stations where they stock their own supplies commissary-style, and to find ways to meet minimum regulated standards for long delays without assistance. All of this gets avoided.

Update: News is confirmed by Gate Gourmet now. According to Jens Kuhlen, president of gategroup North America,

"For several years, gategourmet has been negotiating in good faith with our union in an effort to reach a labor agreement that recognizes our valued employees. We are grateful to our employees for their hard work to support the business, our customers and airline passengers. We look forward to a renewed partnership and long-term stability under this agreement."

Contract language still must be finalized before it’s sent out to workers for a ratification vote.

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