Air Line Pilots Ass'n Intern. v. TEXAS INTERN. AIR.

Decision Date21 April 1983
Docket NumberCiv. A. No. H-81-2200,H-82-363.
PartiesAIR LINE PILOTS ASSOCIATION INTERNATIONAL, Plaintiff, v. TEXAS INTERNATIONAL AIRLINES, INC., Defendant. ASSOCIATION OF FLIGHT ATTENDANTS, Plaintiff, v. TEXAS INTERNATIONAL AIRLINES, INC., Defendant.
CourtU.S. District Court — Southern District of Texas

COPYRIGHT MATERIAL OMITTED

Michael E. Abram, Atty. in Charge, Cohen, Weiss & Simon, New York City, Bruce Fickman, Local Counsel, Chris Dixie & Associates, Houston, Tex., for plaintiffs.

L. Chapman Smith, Baker & Botts, Houston, Tex., for defendant.

MEMORANDUM AND ORDER

SEALS, District Judge.

This is an action for injunctive and declaratory relief brought pursuant to the Railway Labor Act (RLA), 45 U.S.C. § 151-188 (1976), and the Declaratory Judgment Act, 28 U.S.C. § 2201 (1976). Presently pending before the Court are the parties' cross-motions for summary judgment and defendant's motion to defer adjudication of plaintiff's motion for summary judgment until resolution of the status of New York Air (NYA) and its pilots as indispensible parties. Plaintiffs, the Air Line Pilots Association (ALPA) and the Association of Flight Attendants1, seek a declaration of their right to arbitrate their respective grievances, and an injunction compelling defendant Texas International Airlines (TI) to proceed with arbitration before the System Board of Adjustment.

Plaintiff ALPA is the certified bargaining representative for the pilots employed by defendant TI. In June of 1980, TI underwent a corporate reorganization by which TI shareholders exchanged their stock for stock in a newly formed holding company, Texas Air Corporation (TAC). TAC now owns all of the outstanding shares of TI. Later in 1980, TAC organized a new airline, New York Air (NYA), which began its operations in December, 1980, flying routes in the northeastern United States. TAC currently owns sixty-seven percent of the NYA stock, the remainder being publicly held. The NYA pilots are currently unrepresented by any labor organization.

In October 1980, the ALPA brought an action against TI, TAC, and NYA, in the United States District Court for the Eastern District of New York, Air Line Pilots Association v. Texas International Airlines, 502 F.Supp. 423 (S.D.N.Y.1980), complaining of various substantive violations of the RLA, and seeking injunctive relief and damages. Judge Nickerson found that the complaint raised a "representation dispute" under § 2, Ninth, of the RLA, 45 U.S.C. § 152, Ninth, and dismissed the action for lack of subject matter jurisdiction. The dismissal was affirmed by the Second Circuit in Air Line Pilots Association v. Texas International Airlines, 656 F.2d 16 (2d Cir. 1981).

In the New York action, the ALPA contended that TI had substantively violated the RLA: (1) by failing in its duty to maintain the collective bargaining agreement, § 2, First; (2) by unilaterally changing rates of pay, rules, and working conditions, § 2, Seventh, § 6; (3) by interfering, coercing, or influencing employees in the organization and designation of a representative, § 2, Third and Fourth; and (4) by failing to "treat with" the ALPA as the exclusive representative of TI's pilots, § 2, Ninth. The ALPA contended in essence that TI and NYA should be treated as a single carrier, due to TI's incestuous relationship with its sister company NYA. "The complaint requested an order requiring TI to deal exclusively with ALPA, to cease hiring New York Air pilots except in accordance with the ALPA agreement, to cease operating New York Air except in accordance with the ALPA agreement, and to cease its efforts to nullify the collective bargaining relationship with ALPA." ALPA v. TI, 656 F.2d at 18. Further, the ALPA maintained that the controversy before the New York court had raised a "major" dispute under the RLA. The ALPA, however, had chosen not to invoke the various administrative dispute resolution mechanisms available under the RLA, but instead sought direct judicial intervention "to prevent what it perceived as an illegal attempt by TI to circumvent its collective bargaining obligations." ALPA v. TI, 656 F.2d at 20. The Second Circuit thus refused to decide whether the controversy raised a "major" or "minor" dispute under the RLA, and held that judicial intervention was improper at that time. ALPA v. TI, 656 F.2d at 20 n. 6.

After analyzing the framework and history of the RLA, the court reasoned that although the case did not present a traditional representation dispute — there was no rival union or pending application for National Mediation Board (NMB) certification — sole jurisdiction rested with the NMB as a representation dispute was present. Two factors were key in the court's analysis: (1) that intervention by the court would necessitate a determination whether the ALPA was the proper representative of the NYA pilots, a function reserved exclusively to the NMB, and (2) that the NMB was empowered to, and had shown itself able to, decide representation disputes arising out of corporate restructurings. Thus, the circuit court affirmed the order of the district court dismissing the action for lack of subject matter jurisdiction.

The present action was brought in August of 1981, and unlike the New York proceeding failed to name TAC and NYA as party defendants. The ALPA maintains that unlike the New York proceeding, this action raises a "minor" dispute under the RLA, as it involves a controversy growing out of a grievance or out of the interpretation or application of the terms of an existing collective bargaining agreement.

On November 4, 1980, the ALPA submitted a pilots' group grievance,2 requesting an investigation and hearing regarding alleged violations of the pilots' collective bargaining agreement, specifically complaining of TI's refusal to apply the existing agreement to the NYA operation. The ALPA further alleges that on November 18, 1980, TI refused to conduct an investigation and hearing regarding this grievance. On December 11, 1980, the grievance was submitted to the System Board of Adjustment. And, on January 26, 1981, TI informed the ALPA that it would not participate in arbitration before the System Board regarding the grievance.

Section 19(A) of the collective bargaining agreement between TI and the ALPA provides for a System Board of Adjustment to adjust grievances and resolve disputes arising under the terms of the agreement. The particular provision in issue is section 24(E) of the agreement which provides as follows: "The provisions of this Agreement shall be binding up any successor or merged company or companies of any successor in the control of the Company, unless and until changed in accordance with the provisions of the Railway Labor Act."

The broad purposes underlying the RLA are to encourage collective bargaining by railroads and airlines and their employees in order to avoid disruptive commerce-crippling strikes, Texas & New Orleans Railroad Co. v. Brotherhood of Railway & Steamship Clerks, 281 U.S. 548, 50 S.Ct. 427, 74 L.Ed. 1034 (1930), and to secure self-adjustment between the well-balanced powers of carriers and unions. Elgin, J. & E. Railway Co. v. Burley, 325 U.S. 711, 752-53, 65 S.Ct. 1282, 1303, 89 L.Ed. 1886 (Frankfurter, J., dissenting); Ruby v. American Airlines Inc., 323 F.2d 248, 256 (2d Cir.1963) (Friendly, J.). To this end, the Act established an elaborate machinery for negotiations, mediation, and arbitration, to handle disputes between carriers and their employees. The specific procedures to be followed depend upon the classification of the dispute in issue. Further, the question of jurisdiction of the federal courts, and the concomitant nature of available judicial relief, turn on the proper classification of the dispute.

Although courts usually speak in terms of the existence of two primary types of disputes under the RLA, more properly, disputes fall within three broad categories. See Summit Airlines v. Local No. 295, International Brotherhood of Teamsters, 628 F.2d 787, 790-91 (2d Cir.1980). "Major disputes" are disputes arising "over the formation of collective agreements or efforts to secure them. They arise where there is no such agreement or where it is sought to change the terms of an existing one...." Elgin, J. & E. Railway Co., 325 U.S. at 723, 65 S.Ct. at 1289. "Minor disputes" are defined as those "in which no effort is made to bring about a formal change in terms or create a new agreement. The dispute either relates to the meaning or proper application of a particular provision with reference to a specific situation." Id. A representation or jurisdictional dispute involves the proper determination of who shall have the right to represent a given class or craft of employees for purposes of the Act, by virtue of their majority status. See Switchmen's Union v. National Mediation Board, 320 U.S. 297, 64 S.Ct. 95, 88 L.Ed. 61 (1943).

If the dispute is "minor," the parties must first seek to resolve it through negotiation and prescribed grievance procedures; failing resolution it then may be submitted by either party to binding arbitration before an adjustment board, which has exclusive jurisdiction to resolve grievances and determine questions of interpretation or application of existing collective bargaining agreements. Brotherhood of Locomotive Engineers v. Louisville & Nashville Railroad Co., 373 U.S. 33, 83 S.Ct. 1059, 10 L.Ed.2d 172 (1963); Brotherhood of Railroad Trainmen v. Chicago River & Indiana Railroad Co., 353 U.S. 30, 77 S.Ct. 635, 1 L.Ed.2d 622 (1957). Board decisions are final and binding upon the parties. 45 U.S.C. § 153 First (m); Elgin, J. & E. Railway Co., 325 U.S. at 727, 65 S.Ct. at 1291. "Major" disputes are subject to mediation by the NMB, voluntary arbitration, conciliation attempts by the President, and finally upon failure to resolve a controversy, the parties may resort to self-help. Elgin, J. & E. Railway Co., 325 U.S. at 725, 65 S.Ct. at...

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