Federal Aviation Administration Employee Retention Act

Federal Aviation Administration Employee Retention Act - Revises requirements for the dispute resolution process of the Federal Aviation Administration (FAA) regarding negotiations with the exclusive bargaining representative of FAA employees over proposed changes to the FAA personnel management system.

Requires submission of issues in controversy to the Federal Service Impasses Panel (FSIP) for binding arbitration if the services of the Federal Mediation and Conciliation Service (FMCS, required by current law) have led to an impasse between the FAA and its employees in reaching an agreement. Prescribes a procedure for the appointment of a three-member arbitration board by the FSIP Executive Director.

Repeals the current requirement that, if the services of the FMCS do not lead to an agreement, the Administrator's proposed change to the personnel management system shall not take effect until 60 days have elapsed after the Administrator has transmitted the proposed changes, along with the objections of the employees to the changes, and the reasons for such objections, to Congress.

Provides a dispute resolution process alternative to the existing requirement to use FMCS services. Authorizes the FAA Administrator and the exclusive bargaining representative of FAA employees, by mutual agreement, to adopt alternative procedures for the resolution of disputes or impasses arising in the negotiation of a collective-bargaining agreement.