Wednesday, June 30, 2010

Clarification on 9.4 Successor Clause

A reader yesterday pointed to the Successor Clause Section 9.4 of the CBA as a legal reason why a new company would have to honor our current CBA. We just heard back from Whitfield McTair on this and his explanation was that this clause only applies to another company that would buy Covenant's airport division either by selling, transferring or leasing. It would not apply if another company was awarded the contract by TSA or the Airport Commission.

This just gave us an interesting thought. The owner of Covenant died sometime last year. His widow did a tour of SFO a while back. Many theorized at the time that she might sell the company. If this were true, then that company would have to honor the CBA. What if she did actually sell it off to Akal Security and they're just waiting for approval from TSA? Interesting food for thought.

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