Southern Categorical Airways is suing former pilots over coaching prices

A passenger airline has filed a lawsuit in opposition to 19 pilots who lately give up their jobs, searching for 1000’s of {dollars} that the airline says the pilots owe to cowl coaching prices.

The corporate relies in Florida Southern Express Airlines, is making an attempt to implement a controversial employment provision that has lately gained nationwide consideration. often called “Training payment agreement clause“, the phrases state that employees can pay the corporate a sure amount of cash in the event that they give up earlier than they’ve labored there for a specified time period.

Employers who use such agreements say they assist guarantee employees do not instantly go away for higher-paying jobs proper after receiving priceless coaching. However critics of the agreements — together with the Federal Commerce Fee below President Joe Biden — say they might unfairly lock employees into their jobs and maintain wages low by limiting labor market mobility.

Over the course of every week in July, Southern Airways filed 19 complaints in opposition to former pilots in small claims and district courtroom in Palm Seaside County, Florida, in accordance with courtroom information. In every case, the airline alleges that the pilot signed a promissory be aware upon accepting the job, committing to fly for no less than 12 months after logging sufficient hours to grow to be a “pilot in command” or captain.

Pilots might face a positive of as much as $20,000 in the event that they voluntarily resign, are fired “for trigger” or grow to be “unable to carry out their duties and duties” earlier than reporting on time, in accordance with the lawsuits. Many of the promissory notes had been for $16,000. The quantity pilots are owed will be decreased based mostly on how a lot they labored as captains earlier than departure.

Southern Airways CEO Stan Little informed HuffPost in an interview that the corporate lately determined to implement agreements with a number of pilots who resigned, resulting in a slew of complaints filed by the airline in courtroom. He mentioned there had been no mass resignation, however he believed signing bonuses and different affords from opponents had tempted the Pilots to go away.

“The very last thing we need to do is in any means attempt to intimidate the individuals on our staff,” Little mentioned. “We don’t need to go after anybody with a stick. We need to come to individuals with a carrot.”

Little mentioned pilots typically come to Southern Airways with out a lot flight time, and that the corporate affords a fast solution to accumulate hours as a “second-in-command” and grow to be a airplane captain. He mentioned the corporate expects the pilots to stay round and educate the following group of recruits earlier than they go away for higher-paying jobs.

In keeping with courtroom paperwork, Southern Airways paid the pilots an preliminary wage of $12 per hour, which rose to $18 after which $21 per hour as extra flight time was accrued.

“It is a deal that’s made very clear in your first day,” Little mentioned. “In trade for this extraordinarily priceless coaching and expertise, they comply with keep on for a set time period when they’re promoted to the pilot seat.”

Rachel Dempsey, an legal professional with the authorized assist group Towards Justice, which has criticized such contracts, mentioned she was stunned to see Southern Airways file such a lot of complaints in July. Dempsey’s group has referred to as on federal businesses to ban the usage of coaching reimbursement agreements, arguing that they suppress wages and discourage employees from talking up about considerations within the office.

“It has been actually astounding the variety of lawsuits filed in opposition to so many pilots in a really brief time period,” Dempsey mentioned. “Employers who provide aggressive wages and dealing circumstances don’t want to make use of (these agreements).”

Few estimates recommend that “90%-plus” of the corporate’s pilots keep no less than a 12 months as captain earlier than leaving, with many occurring to the bigger regional airline SkyWest, which has a minority stake in Southern Airways.

Southern Airways is a small operation in comparison with the most important airways most vacationers are aware of. The corporate has about 300 pilots in whole, Little mentioned.

In a single pilot’s resignation letter, which was included in courtroom paperwork, the pilot wrote that he was leaving “resulting from ongoing considerations about upkeep and security” on the firm, in addition to private circumstances. Little denied that the pilots had been leaving due to issues of safety.

Normally, the prospect of making use of coaching debt could make a employee assume twice earlier than elevating security considerations, Dempsey mentioned.

“We don’t need pilots, nurses or truck drivers — all industries the place (these contracts) are used — to be afraid to go away their jobs or communicate out about unsafe practices,” she mentioned.

There isn’t a dependable information on the prevalence of coaching reimbursement agreements within the broader economic system. Some firms have been criticized for utilizing them, together with PetSmart, which, as HuffPost reported final 12 months, File a lawsuit in opposition to the canine breeder For 1000’s of {dollars} in coaching prices after she left her job.

Contracts seem like extra frequent in aviation, with some firms saying they should recoup their funding in coaching earlier than pilots go away for opponents. HuffPost reported final January that the air cargo firm Amerilight had achieved simply that File a lawsuit in opposition to the pilot For $20,000 once I left for an additional job.

The Federal Commerce Fee lately issued a proposed rule that will successfully ban non-compete agreements, which forestall employees from accepting jobs with opponents for a sure interval after leaving an organization. The unbiased company’s proposal would come with coaching reimbursement provisions as a part of the ban, arguing that they function in the identical means as non-competes.

However the FTC doesn’t have jurisdiction over airways; It falls below the Ministry of Transport. Progressive teams have referred to as on the Division of Transportation and different federal businesses to institute their very own bans on agreements to which the FTC rule doesn’t apply.

Employers could also be tempted to impose such agreements in instances of low unemployment, resembling now, once they must scramble one another for employees. Though there are indicators that the labor market has softened barely lately, the speed of employees leaving different jobs stays greater than pre-pandemic ranges, suggesting that employees are nonetheless in a robust place to cut price for higher wages and advantages.

Competitors was fierce within the aviation house, with airways bidding Exciting signing bonuses To draw pilots

“If there wasn’t a scarcity of pilots, this would not be an issue in any respect,” Little mentioned.

He added that among the many complaints the corporate filed in opposition to pilots who lately left, “there can be extra to come back.”