Summary TWU Local 556 refuses to attend Southwest Airlines meeting with Elliott Investment Management due to a "restrictive" NDA. The two companies are set to meet next month for the first time. Some flight attendants have expressed disappointment in not participating in discussions.
TWU Local 556, the union representing Southwest Airlines ’ flight attendants, is speaking out after being requested to attend a meeting by the carrier’s management in regard to Elliott Investment Management. The union’s leaders were reportedly asked to sign a non-disclosure agreement (NDA), but have refused. It comes as the investment company recently sent a letter to the Dallas-based airline, criticizing its leadership, including CEO Bob Jordan and Chairman Gary Kelly.
Since purchasing shares in Southwest, Elliott has claimed it can improve the carrier’s culture and financial performance. A message from the President Bill Bernal, TWU Local 556 President, shared an update with the union’s more than 21,000 flight attendants on Sunday. Bernal cited a “restrictive” NDA for its reasoning behind not attending the meeting called by Southwest’s leaders.
“Recently, the Company contacted TWU Local 556 as well as other Unions within the Company to request a meeting regarding Elliott Investment Management. However, after careful consideration, we have decided not to participate in the proposed meeting due to the restrictive nature of the Non-Disclosure Agreement (NDA) that the Company insists upon.” Meeting for the first time Southwest and Elliott agreed on Monday that they will meet next month for the first time, according to Reuters .
The two companies will discuss any potential changes that should be made at Southwest. Regardless of the meeting, which is scheduled for September 9th, Elliott reportedly informed investors that it may still move forward with a proxy fight. Bernal explained how it was difficult for the union to make the decision to back out of the meeting.
“This decision was not made lightly, and we understand how disheartening it is that our Union will not be meeting the Company now. We share in that disappointment, as we were hopeful for a constructive dialogue. However, the NDA would include terms and conditions severely limiting our ability to maintain open and transparent communication with you.
Our commitment to keeping you informed and involved in the process is paramount, and we cannot, in good conscience, agree to terms that would compromise that principle.” The theft was unearthed after an in-house investigation by Southwest. Elliott holds voting power over nearly 10% of Southwest and believes it has solutions to tackle the low-cost carrier’s “immense” challenges, according to Reuters.
Southwest has scheduled its investor day on September 26th – about two weeks after its meeting with the activist hedge fund. "We welcome the opportunity to discuss ideas that would drive sustained Shareholder value as we work to reach a collaborative resolution," the carrier stated. “I’d rather be part of the discussions” However, according to TWU Local 556, the union will not take part in any discussions.
Keenan Manzo, a flight attendant, explained on Instagram that she would rather be included. “We’ve always signed NDA’s in meeting with the company. We signed them for the merging of seniority lists with AirTran, we sign them in negotiations.
Of course they would expect to have conversations that weren’t broadcast to 30k fa’s. Do we really think Elliot investment group is going to share the details of their next move with us without an NDA. I’d rather be part of the discussions.
” Another person on the social media platform by the name of “jumpseat_gypsy,” said TWU Local 556 made the wrong decision. “How would it harm membership by signing an NDA? We get the same amount of information regardless,” they commented. “Terrible decision.
” Bernal mentioned that the union is “ready and willing to meet” with Southwest leaders and acknowledged that “any future discussions allow for the open dialogue” that the inflight workers deserve. “Our focus continues to be on protecting your rights and interests,” Bernal said. “We will keep you updated as the situation evolves.
” Simple Flying reached out to both Bernal and TWU Local 556 on Monday but was unable to receive an immediate response. The carrier has not yet revealed details on how it will remain inclusive of travelers of all sizes when it ditches open seating freedom next year..
