Association of Flight Attendants, Afl-Cio v. Usair, Inc.

24 F.3d 1432, 306 U.S. App. D.C. 324, 146 L.R.R.M. (BNA) 2534, 1994 U.S. App. LEXIS 13419, 1994 WL 240662
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 7, 1994
Docket92-7253
StatusPublished
Cited by20 cases

This text of 24 F.3d 1432 (Association of Flight Attendants, Afl-Cio v. Usair, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Association of Flight Attendants, Afl-Cio v. Usair, Inc., 24 F.3d 1432, 306 U.S. App. D.C. 324, 146 L.R.R.M. (BNA) 2534, 1994 U.S. App. LEXIS 13419, 1994 WL 240662 (D.C. Cir. 1994).

Opinion

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

In 1992, USAir, Inc. (“USAir”) entered into a ten-year arrangement with Shuttle, Inc. (“Shuttle”), pursuant to which USAir assumed managerial control of Shuttle’s flight operations. When this deal was executed, the flight attendants employed by USAir were represented by appellant Association of Flight Attendants (“AFA”), and these employees were covered by a collective bargaining agreement between AFA and USAir (the “AFA-USAir agreement”). Shuttle’s flight attendants were represented by the Transport Workers Union (“TWU”), and they were covered by a collective bargaining agreement that had been negotiated by Eastern Airlines and TWU (the “Eastern-TWU agreement”). Subsequently, after holding representation hearings, the National Mediation Board declared USAir and Shuttle to be a single transportation system, extinguished TWU’s certification, and certified AFA as the bargaining representative for both Shuttle and USAir flight attendants. USAir then recognized AFA as the representative of Shuttle flight attendants, but it insisted that those employees were still covered by the terms of the Eastern-TWU agreement. AFA claimed that the AFA-USAir agreement should be extended to cover Shuttle flight attendants.

AFA filed suit for declaratory and injunc-tive relief in the District Court, asserting that, because the Eastern-TWU agreement must have expired when TWU’s certification was extinguished, the AFA-USAir agreement necessarily establishes the terms and conditions to be applied to Shuttle flight attendants until a new agreement is negotiated. USAir maintained that Shuttle flight attendants were covered by the terms of the Eastern-TWU contract until the parties reached a different arrangement. The District Court treated the parties’ submissions as cross-motions for summary judgment, and granted USAir’s motion. We affirm.

It is clear that Shuttle flight attendants are not covered by the terms of the existing collective bargaining agreement between USAir and AFA. Thus, they cannot claim benefits under that agreement absent a negotiated accord to that effect. It is also clear that neither USAir nor AFA is contractually bound by the Eastern-TWU agreement, for these parties have not assented to any of the terms of that agreement. Nonetheless, insofar as the Eastern-TWU agreement establishes conditions of employment for Shuttle flight attendants, the agreement fixes the “status quo” (ie., the starting point) in the bargaining relationship between USAir and AFA on behalf of Shuttle flight attendants. This means that, under the Railway Labor Act (“RLA” or “Act”), 45 U.S.C. § 156 (1988), the terms of the Eastern-TWU agreement will continue to govern the rates of pay, rules, and working conditions of Shuttle flight attendants until USAir and AFA agree otherwise.

I. BACKGROUND

The facts of this case are not in dispute. AFA is the duly certified representative of the approximately 9000 flight attendants employed by USAir. At all times relevant to this case, AFA and USAir have been parties to a collective bargaining agreement covering rates of pay, rules, and working conditions for USAir flight attendants. 1 Shuttle, which *1435 currently employs approximately 240 flight attendants, has undergone several incarnations. It began its corporate life as the Eastern Airlines Shuttle (“Eastern”). Eastern’s flight attendants were represented by TWU and were covered by the Eastern-TWU collective bargaining agreement. After Donald Trump purchased Eastern’s assets and operations in 1989, the carrier operated briefly as the Trump Shuttle. Trump Shuttle voluntarily recognized TWU as the flight attendants’ representative and it applied the Eastern-TWU agreement to those employees. Shuttle, the present-day carrier, was incorporated in April 1992 through a corporate merger with Trump Shuttle.

On April 10, 1992, USAir entered into a ten-year management agreement (“Management Agreement”) with Shuttle. Under this Management Agreement, USAir assumed complete managerial control of Shuttle. 2 USAir is responsible for all aspects of Shuttle’s management, including fares, financial recordkeeping, advertising and promotions, aircraft maintenance, and labor relations. USAir has authority to negotiate new collective bargaining agreements on Shuttle’s behalf, but any agreements costing Shuttle over $2 million annually must be approved by Shuttle’s board of directors. USAir has no present equity interest in Shuttle, but it has an option to purchase a controlling interest in the company effective October 10,1996. Under the Management Agreement, Shuttle personnel remain employed by Shuttle.

The issue of what employment terms and conditions would govern the Shuttle flight attendants has been contentious from the first. In November 1991, prior to entering into the Management Agreement, USAir met with representatives of both TWU and AFA and informed the unions it did not plan to integrate the USAir and Shuttle flight attendants because it would be too costly to apply the terms of the AFA-USAir agreement to Shuttle flight attendants. USAir also pointed out that the consortium of banks that owned Shuttle wanted to be able to sell Shuttle to another carrier without interruption in service in the event that USAir did not exercise its purchase option. Thus, beginning in January 1992, USAir and AFA representatives discussed entering into a “fence” agreement that would formally segregate USAir and Shuttle flight attendants by providing that they would continue to work on their respective separate routes under separate collective bargaining agreements. AFA took the position that unless the parties signed a fence agreement, Shuttle flight attendants would be subject to the terms of the AFA-USAir agreement, rather than the Eastern-TWU agreement. USAir maintained, and continues to maintain, that a fence agreement was a convenience, not a legal necessity.

The parties were unable to conclude a fence agreement and, upon assuming control of Shuttle in April 1992, USAir continued to deal with TWU and to administer the terms of the Eastern-TWU collective bargaining agreement. In that month, a petition was filed with the National Mediation Board (“NMB” or “Board”) for a determination of the effect of the Management Agreement on union representation. On August 10, 1992, after holding hearings, the Board issued a decision declaring USAir and Shuttle to be a “single transportation system for purposes of Section 162, Ninth of the Railway Labor Act.” USAir, Inc./Shuttle, Inc., 19 N.M.B. 388, 416 (1992). Accordingly, the Board extended AFA’s certification to cover Shuttle flight attendants and extinguished TWU’s certification. See id. at 417. The Board’s decision did not address any issues concerning the effect of change in representation on the validity of the existing collective bargaining agreements. 3

*1436 Following the Board’s decision, USAir dealt exclusively with AFA as the representative of Shuttle flight attendants, but continued to apply the terms of the Eastern-TWU collective bargaining agreement to those employees.

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24 F.3d 1432, 306 U.S. App. D.C. 324, 146 L.R.R.M. (BNA) 2534, 1994 U.S. App. LEXIS 13419, 1994 WL 240662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/association-of-flight-attendants-afl-cio-v-usair-inc-cadc-1994.