48% of Republic Airway's shareholders rebuke management

Earlier today.

Nearly half of Republic Airways shareholders today agreed with picketing pilots, flight attendants and mechanics: The airline is mismanaged and needs an independent board.

New York City Teamsters and Republic Airways employees from Teamsters Local 357 in Plainfield, Ind., crowded the sidewalks on Fifth Avenue this morning just outside the site of the airline's annual meeting. They handbilled  pedestrians with fliers that warned of an impending strike if management doesn't offer a fair contract.

The shareholders voted on a proposal by the Teamsters General Fund to name an independent chairman of the board to strengthen the airline's management. Currently, Bryan Bedford is both chairman and CEO. Under his leadership, pilots haven't had a raise in five years and some now qualify for food stamps.

According to the Teamsters press release:

Today, Republic Airways Holdings ... shareholders expressed their displeasure with company leadership during its annual shareholders’ meeting in New York City with 48 percent of votes cast backing the appointment of an independent chairman of the board. Current CEO and Chairman Bryan Bedford faces growing investor concerns about the company’s mismanagement and weak governance structure as worker unrest spreads through the airline... 

“Today’s vote reflects a serious lack of confidence by investors in Bryan Bedford’s ability to pilot this airline into the future,” said Ken Hall, General Secretary-Treasurer of the International Brotherhood of Teamsters. The union is a long-term Republic shareholder and representative of nearly half of the airline’s frontline workers. “Shareholders sent a resounding message to the board – it is time to break the CEO’s stranglehold on the company.”... 

Republic’s mismanagement also extends to its labor relations as Teamster-represented pilots, flight attendants and mechanics protested outside the meeting. Republic Airways pilots could soon strike over the company’s failure to address fundamental economic issues. With no wage increase in more than five years, some Republic pilots now qualify for food stamps. The company is also destroying morale among other work groups by delaying contract negotiations with flight attendants and violating the workplace rights of mechanics.