Air Line Pilots Assn v. NW Airln Inc

211 F.3d 1312
Court of Appeals for the D.C. Circuit·Decided December 28, 1999·No. 98-7196·Published

Opinion

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued September 9, 1999 Decided December 28, 1999

No. 98-7196

Air Line Pilots Association, International, Appellee/Cross-Appellant

v.

Northwest Airlines, Inc., Appellant/Cross-Appellee

Consolidated with

98-7202

Appeals from the United States District Court for the District of Columbia (No. 97cv01917)

John J. Gallagher argued the cause for appellant/crossappellee . With him on the briefs were Cathy Wassberg, Neal D. Mollen, and Intra L. Germanis.

Jerry Anker argued the cause for appellee/cross-appellant.

With him on the briefs were Elizabeth Ginsburg and James K. Lobsenz.

Before: Ginsburg, Sentelle, and Garland, Circuit Judges.

Opinion for the Court filed by Circuit Judge Ginsburg.

Ginsburg, Circuit Judge: For more than 30 years Northwest Airlines has required newly hired pilot trainees to sign individual employment contracts called "Conditions of Employment ." In 1995 Northwest added several new provisions to the Conditions, including a clause under which each trainee agreed to binding arbitration of any claim he might have against Northwest for discrimination in employment.

The Air Line Pilots Association (ALPA), which is the union that represents Northwest pilots once they have completed their training, filed suit claiming that the carrier violated the Railway Labor Act, 45 U.S.C. s 151 et seq., by requiring individual trainees to agree to the Conditions without first having bargained with ALPA over them. The district court granted partial summary judgment for each party; the court enjoined Northwest, pending completion of the bargaining and mediation process, from applying the Arbitration Clause to pilots who have completed their training and are represented by ALPA, but refused to enjoin the use of any other of the Conditions.

Northwest appeals, claiming that under Alexander v.

Gardner-Denver Co., 415 U.S. 36 (1974), the arbitration of individual statutory claims is not a mandatory subject of collective bargaining and that Northwest is therefore free to bargain individually with its employees over the Arbitration Clause. We agree and accordingly reverse the judgment of the district court on this issue.

ALPA cross-appeals, claiming the district court should have enjoined the use of other provisions that Northwest added to the Conditions in 1995. Because, in light of subsequent events, the cross-appeal does not present a live controversy, we dismiss ALPA's claim without prejudice to its raising the same claim in the future.

I. Background

The relationship between Northwest and ALPA is governed by the Railway Labor Act (RLA), 45 U.S.C. s 151 et seq. Under RLA s 2 First, 45 U.S.C. s 152 First, the carrier is required to "exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions." This statutory obligation to bargain with the union in good faith is backed up by RLA s 2 Seventh, 45 U.S.C. s 152 Seventh, which provides that "[n]o carrier ... shall change the rates of pay, rules, or working conditions of its employees, as a class as embodied in agreements except in the manner prescribed in such agreements or in [s 6 of the RLA]." In other words, if the carrier is unable to reach agreement with the union on changing a rate of pay, rule, or working condition, then it must maintain the status quo until it has satisfied the multi-step process of negotiation, mediation, arbitration, and cooling-off required under RLA s 6, 45 U.S.C. s 156. See Detroit & Toledo Shore Line R.R. Co. v. United Transportation Union, 396 U.S. 142, 149 (1969) (describing negotiation process under s 6 as "almost interminable "). If at the end of that process the parties have not reached an agreement, then the employer may unilaterally implement its proposal and the union may resort to economic self-help to resist the change.

Matters that are "directly related to 'rates of pay, rules, and working conditions'," and may therefore trigger the obligations of RLA s 2 First and Seventh, are denominated "mandatory subject[s] of collective bargaining," a phrase courts have borrowed from case law arising under the National Labor Relations Act. Japan Air Lines Co. v. International Ass'n of Machinists, 538 F.2d 46, 52 (2d Cir. 1976). If a carrier and a union have a dispute over a proposed change to a mandatory subject of bargaining, then the union can get an injunction prohibiting the carrier from unilaterally implementing the change before completing the lengthy negotiation process set out in s 6. On the other hand, if the dispute is over a non-mandatory subject, then the carrier may unilaterally implement the change unless limited by an existing collective bargaining agreement (CBA).

A. Northwest's Practice, 1966-97

ALPA has represented the pilots of Northwest Airlines in collective bargaining for nearly 60 years. When a pilot first begins his training with Northwest, he is not represented by ALPA or by any other union. When the pilot completes his training and enters into "revenue service" as a probationary employee, however, he immediately becomes a member of the bargaining unit represented by ALPA.

As early as 1966 Northwest unilaterally began to require that each trainee pilot agree to the Conditions as part of his contract of employment. The earliest known Conditions included provisions covering such matters as the trainee's pay, permission to use his likeness in promotions, and the assignment of rights to anything he might invent. Although trainees are not represented by ALPA when they agree to the Conditions, some of the Conditions either expressly or implicitly continue to apply for as long as the signatory remains employed as a pilot with Northwest, that is, even after the pilot becomes a member of the bargaining unit represented by ALPA.

Over the course of three decades Northwest made numerous changes to the Conditions without consulting ALPA. In 1995 the airline added an Arbitration Clause requiring employees to submit to binding arbitration all claims against it arising from the employment relationship. Of particular relevance to this appeal, the Arbitration Clause specifically requires binding arbitration of statutory employment discrimination claims brought under "the Minnesota Human Rights Acts, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, or any other state or federal law prohibiting employment discrimination " (citations omitted). Also in 1995, Northwest unilaterally introduced other new Conditions: (1) setting the pilot's monthly salary during the probationary period, when he has completed his training and is represented by ALPA; (2) requiring the pilot to submit to a medical examination if Northwest has reason to believe he is no longer able to perform his essential job functions; (3) acknowledging that

Northwest may change various working conditions at its option; and (4) acknowledging that failure to comply with company rules is a ground for termination.

B. ALPA's Objection, 1997-Present

In 1997 Northwest notified ALPA that it was terminating a probationary pilot and attached to the notice a copy of the Conditions he had signed. ALPA, which claims that this was the first it had learned of the Conditions, demanded that Northwest cease requiring trainee pilots to agree to them and that it inform each pilot who had signed Conditions that they were null and void. When Northwest refused to do so, ALPA filed suit in district court seeking injunctive and declaratory relief on the ground that Northwest had violated the RLA by unilaterally implementing the Conditions, which ALPA alleged are individual contracts concerning mandatory subjects of bargaining, without first negotiating with the Union as required by the RLA.

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