IUFA v. Pan American World Airways, Inc., 87 Civ. 1640 (LBS).

• Decision Date: 16 July 1987
• Docket Number: No. 87 Civ. 1640 (LBS).,87 Civ. 1640 (LBS).
• Citation: 664 F. Supp. 156
• Parties: INDEPENDENT UNION OF FLIGHT ATTENDANTS, Plaintiff, v. PAN AMERICAN WORLD AIRWAYS, INC. and Pan American Corporation, Defendants.
• Court: U.S. District Court — Southern District of New York

664 F. Supp. 156

INDEPENDENT UNION OF FLIGHT ATTENDANTS, Plaintiff, v. PAN AMERICAN WORLD AIRWAYS, INC. and Pan American Corporation, Defendants.

No. 87 Civ. 1640 (LBS).

United States District Court, S.D. New York.

July 16, 1987.

Bredhoff & Kaiser, Washington, D.C., for plaintiff; George H. Cohen, Mady Gilson, David A. Slansky, of counsel.

Vladeck, Waldman, Elias & Englehard, P.C., New York City, for plaintiff; Seymour M. Waldman, Patricia McConnell, of counsel.

Richard Schoolman, New York City, for defendants Pan American World Airways, Inc.

SAND, District Judge.

Plaintiff, Independent Union of Flight Attendants ("IUFA"), moves for summary judgment against defendants, Pan American World Airways, Inc. ("PAWA") and its parent company, Pan American Corporation, charging that the defendants have violated the Railway Labor Act, 45 U.S.C. § 151, et seq., and IUFA's collective bargaining agreement with Pan American by refusing to arbitrate what IUFA describes as a contract dispute. Defendants have cross-moved to dismiss IUFA's complaint for lack of subject matter jurisdiction and for costs and sanctions.

The defendants' motion to dismiss for lack of subject matter jurisdiction is granted. Therefore, we do not reach plaintiff's motion for summary judgment. The motion for costs and sanctions is denied.

Background

In evaluating a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction, a "court is not restricted to the face of the pleadings, but may review any evidence such as affidavits and testimony...." 2A J. Moore, Moore's Federal Practice ¶ 12.07 2.-1 (2d ed. 1986). Our statement of the relevant facts is based on both the pleadings and the affidavits submitted in connection with the motions.

PAWA is an international airline which is a wholly-owned subsidiary of defendant Pan American Corporation. IUFA is the exclusive collective bargaining representative of PAWA's flight attendants. IUFA obtained its representative status through a certification issued by the National Mediation Board in 1977 after IUFA won an election among PAWA's flight attendants. See Affidavit of Bonnie Singer at ¶¶ 2, 3.

At all relevant times, PAWA and IUFA have been parties to a collective bargaining agreement (the "Agreement") which governs the terms and conditions of flight attendant employment. The Agreement recognizes IUFA as "the sole collective bargaining representative of the craft or class of Flight Attendants in the employ of the Company." See Agreement, Section 1. The Agreement also provides that:

All flying performed by any subsidiary established by Pan Am or any other organization which Pan Am or a subsidiary establishes shall be performed by Flight Attendants on the Pan Am Flight Service System Seniority List in accordance with the terms and conditions of this Agreement or any other applicable Agreement between the Company and the IUFA. Id.

Pursuant to a side letter agreement, defendant Pan American Corporation is bound by the PAWA-IUFA collective bargaining agreement to the same extent as PAWA.

In April 1986, Pan American Corporation purchased a regional airline known as Ransome Airlines, Inc. ("Ransome"). Prior to the acquisition, Ransome had been an independent carrier, unaffiliated with either of the defendants. Subsequent to the acquisition, Ransome became a wholly-owned subsidiary of the entity which, as we have stated, is also PAWA's parent company — Pan American Corporation. In October 1986, Ransome's name was changed to Pan American Express, Inc. ("Pan Am Express"). See Declaration of David E. Ferrucci at ¶¶ 1-3.

There are several dozen flight attendants who work the Pan Am Express flights but none of these flight attendants is on the Pan American Flight Service System Seniority List. At no time have the Ransome/Pan Am Express flight attendants been represented by a union — neither before nor after the acquisition.

IUFA claims that pursuant to its agreements with the defendants, flight attendants on the System Seniority List have the right to perform the work now performed by unrepresented employees on the Pan Am Express flights. To enforce what it sees as a bargained-for contract right, IUFA pursued the grievance and arbitration procedures set forth in the Agreement. Specifically, after PAWA denied IUFA's grievance, the union promptly petitioned to the System Board of Adjustment and invoked expedited arbitration procedures. See Complaint ¶¶ 12-14. PAWA, in turn, responded by declining arbitration and informed IUFA of the company's position, asserted again here as part of the defendants' claim that the Court lacks subject matter jurisdiction, that "the adjustment board lacks jurisdiction to decide this grievance." See Complaint, Exhibit K. After it became apparent that PAWA would not willingly submit to arbitration before the adjustment board, IUFA filed its complaint in the Southern District of New York.

Discussion

A consideration of the threshold jurisdictional question requires a brief review of the tripartite dispute resolution scheme which Congress established in enacting the Railway Labor Act, a statute which regulates labor relations on the nation's railroads and airlines. The statute defines three types of labor disputes and "establishes a distinct resolution procedure" for each type of dispute. International Brotherhood of Teamsters (Airline Division) v. Texas International Airlines, 717 F.2d 157, 158 (5th Cir.1983). "Minor" disputes concern the application or interpretation of an existing collective bargaining agreement. 45 U.S.C. § 184. These disputes are "committed to a grievance-arbitration process" before an authorized system board of adjustment. Texas International Airlines, 717 F.2d at 158. "Major" disputes involve the formation of collective bargaining agreements, and the resolution of such disputes proceeds according to conference and mediation procedures pursuant to Section 6 of the Act. 45 U.S.C. §§ 156, 181. "Representation" disputes involve the definition of a bargaining unit and the determination of the employee collective bargaining representatives. "Representation disputes include issues whether two related carriers will be treated as one for representation purposes, and whether a craft or class must be system-wide or may be split for representation purposes." Texas International Airlines, 717 F.2d at 159 (footnotes omitted). Under Section 2, Ninth of the Railway Labor Act, 45 U.S.C. 152 Ninth, the National Mediation Board has exclusive jurisdiction over all representation disputes.

IUFA claims that the present dispute with the defendants is a "minor" dispute and the Court should therefore compel PAWA to submit to arbitration before a system board of adjustment. Defendants, by contrast, assert that the controversy is more properly characterized as a representation dispute within the sole jurisdiction of the National Mediation Board. We agree with defendants' position, although we believe the question is a close one.

In deciding whether a particular labor dispute is minor, major or representational, a court is guided by certain widely accepted principles. Justice O'Connor, sitting as a Circuit Justice, recently observed that:

the great weight of the caselaw supports the proposition that disputes as to the effect of collective-bargaining agreements on representation in an airline merger situation are representation disputes within the exclusive jurisdiction of the National Mediation Board.

Western Airlines v. Intern. Broth. of Teamsters, ___ U.S. ___, 107 S.Ct. 1515, 1517, 94 L.Ed.2d 744 (O'Connor, Circuit Justice 1987).

It is also generally recognized that labor relations problems after a merger or acquisition in the airline industry may in some instances straddle the Railway Labor Act's seemingly discrete lines of demarcation. That is, what may be characterized as a "minor" dispute over the interpretation of a contract may also implicate concerns which are representational in nature. Where the issues thus overlap, a jurisdictional problem arises. The proper course for a court to follow in such circumstances is to allow the National Mediation Board "alone to consider the post-merger problems that arise from existing collective bargaining agreements." Texas International Airlines, 717 F.2d at 164. See also Western Airlines, 107 S.Ct. at 1517.

Another recognized principle holds that a dispute may be considered representational, even if it does "not arise between two rival representatives. It is enough that there is one claimant and employees who are or who may be either hostile or indifferent." Air Line Pilots Ass'n v. Tex. Intern. Airlines, Inc., 502 F.Supp. 423, 425 (S.D.N.Y.1980). See also Summit Airlines v. Teamsters Local Union No. 295, 628 F.2d 787, 793 n. 3 (2d Cir.1980). (Dispute requirement met "even though only one union seeks representation if some employees are indifferent or hostile to being represented by that union or by any other union").

The question presented in the case at bar, according to IUFA, is not whether IUFA is to be the collective bargaining representative of the flight...