BY: MITCHELL A. VASIN, ESQ. AIRLINE LABOR LAW BY: MITCHELL A. VASIN, ESQ.

PRESENTATION OVERVIEW RAILWAY LABOR ACT Why does it exist? What is the purpose? LABOR UNIONS UNDER THE RLA Purpose and function of a union Laws affecting union membership AIRLINE MERGERS Legal issues for organized labor Seniority integration Case study: the US Airways / American Airlines merger

ABOUT YOUR PRESENTER AVIATION EXPERIENCE LABOR UNION EXPERIENCE Started taking flying lessons in high school (1990) BS Aeronautical Science 1996 ERAU Prescott Airline Transport Pilot, type rated in ATR42/72, B737, A320 series 18 years in the airline industry, 11 years at America West / US Airways / American Airlines Over 12,000 hours of flight time LABOR UNION EXPERIENCE Over 15 years experience Union officer Contract enforcement (grievance / arbitration) Legal campaign organizer & participant LEGAL EXPERIENCE Juris Doctor 2013 Arizona Summit Law School Arizona Supreme Court extern Fisher & Phillips LLP (national labor and employment law firm) Vasin Law Office PLLC: family law practice focusing on airline employees

THE RAILWAY LABOR ACT

THE RAILWAY LABOR ACT A century ago, the railroads were the country’s lifeblood. The state of employment law at the time resulted in numerous disruptions to railroad service. Subject to varying state laws Carriers regularly interfered with union organizing Expiring contracts No streamlined dispute resolution Congress, with support of both airline labor and management, responded by passing a comprehensive set of statutes designed to promote labor peace and minimize disruption of rail service.

THE RAILWAY LABOR ACT www.nmb.gov

THE RAILWAY LABOR ACT GENERAL PURPOSES OF THE R.L.A. Prevent interruptions to carrier service; Contracts do not expire No strikes or lockouts unless NMB authorizes otherwise Freedom to form and join unions; Carriers cannot interfere with union affairs NMB designates the unions Prompt and orderly settlement of contract negotiations; NMB - mediation services Limitations on right to strike Prompt and orderly settlement of contract disputes. Federal courts generally do not have jurisdiction over labor disputes

LABOR UNIONS UNDER THE RLA

LABOR UNIONS UNDER THE RLA PURPOSE AND FUNCTIONS: Exclusive bargaining agent on behalf of the entire work group (craft / class). The exclusive party to all collective bargaining agreements Subject to its political structure, and its own internal policies and procedures.

LABOR UNIONS UNDER THE RLA A NON-UNION AIRLINE

LABOR UNIONS UNDER THE RLA A UNIONIZED AIRLINE

LABOR UNIONS UNDER THE RLA UNION MEMBER RIGHTS Railway Labor Act Union dues Duty of fair representation Landrum-Griffin Act: 29 U.S.C. §§ 401-431 (1959) Protects union participation, elections, and financial management Title VII: 42 U.S.C. 2000e-2(c) et seq. (1964) Prevents discrimination based upon race, color, national origin, etc. Union constitution (common law) Governs the union’s internal workings

LABOR UNIONS UNDER THE RLA UNION MEMBER RIGHTS: Union Dues Union constitution & by-laws Most pilot unions charge a percentage of your gross income Provisions for additional assessments Collective bargaining agreement Agency shop clauses “Beck objectors” Communication Workers of America (“CWA”) v. Beck, 487 U.S. 735 (1988)

LABOR UNIONS UNDER THE RLA UNION MEMBER RIGHTS: Duty of Fair Representation (“DFR”) A union has a “duty to exercise fairly the power conferred upon it in behalf of all those for whom it acts, without hostile discrimination against them.” Steele v. Louisville & Nashville R.R., 323 U.S. 192 (1944) A union breaches the duty if its conduct is either arbitrary, discriminatory, or in bad faith. Vaca v. Sipes, 386 U.S. 171 (1967). “Any substantive examination of a union's performance, therefore, must be highly deferential, recognizing the wide latitude that negotiators need for the effective performance of their bargaining responsibilities.” Air Line Pilots Assoc. v. O’Neill, 499 U.S. 65 (1991).

LABOR UNIONS UNDER THE RLA LANDRUM-GRIFFIN ACT OF 1959 Also known as the Labor Management Reporting and Disclosure Act or “LMRDA” Passed in the wake of two high profile union corruption scandals Main tenets: Union Member Bill Of Rights (Title I) Government oversight of union elections and finances Department of Labor Office of Labor Management Standards (“DOL-OLMS”) Enforcement authority of union members by civil lawsuit Civil and criminal sanctions for union officers who violate the LMRDA

LABOR UNIONS UNDER THE RLA UNION CONSTITUTION (RLA, LMRDA, common law) Details political structure and membership rights Other rights exist under federal law that supersede the constitution Serves as a contract between each member and the union Nonmembers are not subject to the constitution Union afforded a tremendous amount of latitude in interpreting its own constitution

LABOR UNIONS UNDER THE RLA UNION POLITICAL STRUCTURE

LABOR UNIONS UNDER THE RLA UNION MEMBER NONMEMBER FINANCIAL OBLIGATION YES (Dues and assessments per union constitution) (Agency fee / germane expenses) SUBJECT TO COLLECTIVE BARGAINING AGREEMENT SUBJECT TO UNION CONSTITUTION NO PROTECTED BY DUTY OF FAIR REPRESENTATION RIGHT TO VOTE FOR REPRESENTATIVES & CONTRACT RIGHT TO VOTE FOR A NEW UNION

AIRLINE MERGERS

AIRLINE MERGERS LAWS AFFECTING LABOR Railway Labor Act Collective bargaining: combined collective bargaining agreement NMB: single carrier / change of bargaining agent Seniority Integration McCaskill-Bond statute: 49 U.S.C. 42112 (2007) Bankruptcy Code Rejection of Collective Bargaining Agreements : 11 U.S.C. 1113 (1984)

AIRLINE MERGERS THE SENIORITY SYSTEM Seniority is a CBA provision, generally governing: Advancement / furlough Monthly schedules Annual vacation dates Standby travel priority Other provisions

AIRLINE MERGERS SENIORITY INTEGRATION

AIRLINE MERGERS HISTORY OF SENIORITY INTEGRATION Civil Aeronautics Board (1938) Developed and required a seniority integration process, known as Allegheny- Mohawk LPPs §§ 3, 13 Deregulation (1978) Seniority integration fell back into the collective bargaining process under the Railway Labor Act – a “free for all” McCaskill-Bond statute (2007) In response to American Airlines’ acquisition of TWA; too many lopsided integrations

AIRLINE MERGERS 2013 AMERICAN AIRLINES / US AIRWAYS MERGER November 29, 2011 American Airlines files for Chapter 11 bankruptcy March 2012 American Airlines announces plans to terminate CBAs via 1113(c) April 20, 2012 American Airlines unions announce CLA with US Airways management, begins CBA negotiations August 8, 2012 AA pilots reject tentative agreement August 16, 2012 Bankruptcy court rejects American Airlines’ 1113(c) motion. December 7, 2012 AA pilots ratify tentative agreement thereby avoiding 1113(c) motion February 8, 2013 US Airways pilots ratify CLA

AIRLINE MERGERS 2013 AMERICAN AIRLINES / US AIRWAYS MERGER February 14, 2013 Merger officially announced August 12, 2013 Department of Justice and 5 states sue to block merger (Sherman Act of 1890) November 12, 2013 DOJ and AA settle lawsuit, greenlighting the merger December 5, 2013 US Airways / American Airlines merger officially consummates

AIRLINE MERGERS 2013 AMERICAN AIRLINES / US AIRWAYS MERGER January 14, 2014 Allied Pilots Association (“APA”) files single carrier petition with the National Mediation Board (“NMB”) March 4, 2014 US Airline Pilots Association (“USAPA”) files lawsuit against APA alleging violation of McCaskill-Bond statute September 4, 2014 USAPA and APA reach agreement regarding seniority integration protocol; settle lawsuit September 16, 2014 APA certified as the bargaining agent for all American Airlines pilots Negotiations for a Joint Collective Bargaining Agreement (“JCBA”) commence January 30, 2015 JCBA ratified June – October 2015 Seniority integration arbitration hearings

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