199 F.3d 796 (5th Cir. 2000), 99-50610, Int'l Ass'n Mach. v Compania Mex. de Aviacion

Docket Nº:99-50610
Citation:199 F.3d 796
Party Name:International Association of Machinists and Aerospace Workers, AFL-CIO, Plaintiff-Appellant, v. Compania Mexicana de Aviacion, S.A. de C.V., Defendant-Appellee.
Case Date:January 19, 2000
Court:United States Courts of Appeals, Court of Appeals for the Fifth Circuit
 
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Page 796

199 F.3d 796 (5th Cir. 2000)

International Association of Machinists and Aerospace Workers, AFL-CIO, Plaintiff-Appellant,

v.

Compania Mexicana de Aviacion, S.A. de C.V., Defendant-Appellee.

No. 99-50610

United States Court of Appeals, Fifth Circuit

January 19, 2000

Page 797

Appeal from the United States District Court for the Western District of Texas

Before REYNALDO G. GARZA, EMILIO M. GARZA, and DEMOSS Circuit Judges.

REYNALDO G. GARZA, Circuit Judge:

BACKGROUND

During 1994 and 1995, representatives of the International Association of Machinists and Aerospace Workers, AFL-CIO ("IAM") and Compania Mexicana de Aviacion, S.A. de C.V., ("Mexicana") began renegotiating various provisions of the IAM-Mexicana collective bargaining agreement. By the latter part of 1997, the negotiations stalled when Mexicana insisted on a "buy out" that would enable it to outsource work currently preformed by union employees.

On January 6, 1998, at Mexicana's request, the National Mediation Board ("NMB"), under whose auspices mediation was being conducted, released the parties for a 30-day "cooling off" period. On January 30, 1998, Mexicana notified IAM that "pursuant to the Worker Adjustment and Retraining Notification Act, 29, U.S.C. Section et seq., . . . effective the 14-day period commencing April 3, 1998 Mexicana Airlines" would terminate certain employees. Although the parties continued meeting, Mexicana made its final offer to IAM on February 5, 1998.

Mexicana offered IAM an enhanced separation package in exchange for each employee's agreement to surrender all rights provided under the collective bargaining agreement and those matters discussed in the negotiations. In February of 1998, the union members voted to approve, against IAM's advice, Mexican's separation package. After the union members voted in favor of approval, on March 1, 1998, Mexicana terminated all IAM-represented employees.

On May 6, 1998, IAM filed suit against Mexicana, alleging that Mexicana violated the Worker Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq., ("WARN Act") by discontinuing the employment of union members prior to 60 days from the January 30, 1998 lay-off notice. Mexicana maintains that the separation package, which employees voted to accept, satisfied the requirements of the WARN Act and that employees, by approving the terms of...

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