LAX Caterer May Owe Workers $17.5 Million For Giving Them What The Union Wanted, Because Labor Law Says They’re An Airline

Sky Chefs, an LAX airline caterer, could be liable for approximately $17.5 million in back pay to its workers. This potential debt stems from a change in health benefits implemented by the company, which directly contradicted requests made by the union. Legal proceedings are underway due to Sky Chefs’ longstanding classification as an ‘airline’ under the Railway Labor Act. This designation historically allowed the company to maintain contract negotiations without disruption, effectively freezing the status quo. However, evolving federal labor law is now challenging this approach, suggesting a shift away from treating airline contractors with such protections.