Not necessarily true. They can agree to a contract that exceeds the cost limit provided in the MOU. Of course the company has to agree to the additional costs. However, if it goes to arbitration, then the top limit is set and cannot be exceeded by the arbitrators...

The FA's just gave us an example...

From the APFA release highlighting their new TA:

"Should the T/A fail a ratification vote, the economic terms of our contract (wages, premiums, sick, vacation, medical and 401(k)) will be decided in final and binding arbitration. As the Negotiations Protocol Agreement states, the arbitration panel will be required to establish a contract that is at least equal in value to the current LUS and LAA CBAs – “the floor” – and is market-based in the aggregate (defined by United, Continental, and Delta) – “the ceiling.” To reach the ceiling, the current combined costs of the LAA and LUS contracts would have to be increased by $111 million. The total value of the T/A is $193 million. The difference - $82 million – is the negotiated premium above what could be achieved in arbitration."

And when the FA's were just about to approve the TA, they learned Delta just got a raise. They went to Parker and asked for even more, an additional $13 million, and got it. If Parker is motivated to get this done, it seems he may be willing to pay for it...

http://www.thestreet.com/story/12892...o&cm_ven=YAHOO

Sorry, just realized the question was if it was in Arbitration. In that case I agree, yes it does...