Atlas Air, Inc. v. Air Line Pilots Ass'n

232 F.3d 218, 344 U.S. App. D.C. 1, 165 L.R.R.M. (BNA) 2892, 2000 U.S. App. LEXIS 29552, 2000 WL 1694394
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 21, 2000
Docket96-3055
StatusPublished
Cited by29 cases

This text of 232 F.3d 218 (Atlas Air, Inc. v. Air Line Pilots Ass'n) 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
Atlas Air, Inc. v. Air Line Pilots Ass'n, 232 F.3d 218, 344 U.S. App. D.C. 1, 165 L.R.R.M. (BNA) 2892, 2000 U.S. App. LEXIS 29552, 2000 WL 1694394 (D.C. Cir. 2000).

Opinion

Opinion for the Court filed by Circuit Judge SENTELLE.

SENTELLE, Circuit Judge:

The cockpit crewmembers employed by Appellee Atlas Air, Inc. elected to unionize, whereupon Atlas Air immediately terminated their participation in its profit-sharing plan. Atlas sought a declaratory judgment that its action was a legal modification of status quo employment conditions under the Railway Labor Act (RLA), 45 U.S.C. § 151 et seq., and that Atlas was free to make further status quo changes pending the onset of collective bargaining. The Air Line Pilots Association, International (ALPA) filed a cross-claim charging that Atlas Air’s maintenance and execution of a discriminatory anti-union policy violates RLA Section 2, Third and Fourth. The district court granted summary judgment for Atlas Air on the grounds that the RLA does not require carriers to maintain status quo wages, work rules, or conditions of employment. See Atlas Air, Inc. v. ALPA 69 F.Supp.2d 155, 159 (D.D.C. 1999). The court further held that it lacked jurisdiction to hear Atlas’s second claim because it was insufficiently concrete. See id. at 164. ALPA and Atlas each appeal. Because the RLA prohibits carriers from interfering with, coercing, or influencing employee decisions whether to unionize, we reverse and remand to the district court for further proceedings.

I. Background

A.

Atlas Air, Inc. (Atlas) is a cargo airline. Of Atlas’s approximately 1,100 employees, about half are cockpit crewmembers (pilots and flight engineers). In June 1994, Atlas announced a new compensation package which included profit-sharing. Under this plan, “eligible employees” would receive semiannual payments based upon the company’s profits. To ensure that employees would receive additional income under the plan, Atlas set a minimum guaranteed payment of seven percent of annual pay. Under the plan, the definition of “eligible employee” excludes “those who are subject to a collective bargaining agreement or who have been certified by the National Mediation Board or any such other regulatory agency for representation.” This provision was publicized to Atlas employees along with information about the rest of the plan’s terms.

ALPA began efforts to organize cockpit crewmembers at Atlas Air perhaps as early as 1994. See Atlas, 69 F.Supp.2d at 159. These efforts intensified in 1996. On September 30, 1996, Atlas sent a letter to all of its employees providing a “straightforward explanation of the profit-sharing plan.” A document enclosed with the letter outlined the eligibility rules and provided sample calculations of likely benefits from the plan. The document also provid *221 ed an explanation for the eligibility rules, noting that the exclusion of unionized employees is “very common in unionized organizations where the compensation plans for unrepresented employees are kept separate from those of unionized employees.”

On April 21, 1997, Atlas announced that it was revising the profit-sharing plan. In particular, for the next three years Atlas would guarantee eligible employees a minimum profit-sharing payment of 10 percent of annual pay, irrespective of profits (20 percent for captains). Atlas’s announcement of the new plan, mailed to all crew-members, noted that profit sharing would end “upon certification of a union” and that all employment rules and compensation provisions, including “existing and future wages and benefits” would “become subject to the collective bargaining process,” if a union were certified.

ALPA filed its first application for a representation election for Atlas crew-members in November 1997. Shortly thereafter, Atlas distributed a draft Flight Crew Policy Manual that outlined the profit-sharing eligibility rules. According to the manual, “profit sharing, including the guaranteed portion, ceases upon certification of a union.” Draft Flight Crew Policy Manual at 21. The draft manual also included a chart illustrating the guaranteed minimum payments that employees could expect so long as they remained eligible for the profit-sharing plan. At the time, ALPA did not question the legality of the eligibility provision of Atlas’s profit-sharing plan. ALPA lost the 1997 representation election. It did not, however, file any objections to the election related to the profit-sharing plan eligibility requirements or otherwise.

ALPA and the International Brotherhood of Teamsters each filed for a second election in February 1999. On February 17, Atlas sent a letter to all crewmembers explaining the potential consequences of unionization. While noting that employees have the right to choose union representation, it also stated that Atlas unilaterally could change the conditions of employment if a union were to be certified. In bold face type, the letter declared:

One area that will change if a union is certified is profit sharing. Our Profit Sharing Plan says clearly that employees who have been certified by the National Mediation Board for representation are not eligible for profit-sharing. ... Of course, a union could choose to bargain for profit sharing in subsequent negotiations, but it could be years before any resolution is reached.
If a union is certified, you instantly lose your profit sharing. If anyone promises you that you can keep your profit-sharing should a union be certified — they’re either seriously mistaken, or they’re intentionally misleading you.

(Emphasis in original.) The letter further noted that “[t]he loss of profit sharing could have a significant financial impact on you and your family” and included a chart detailing the likely impact of the plan’s termination on the salaries earned by employees of varying levels of seniority.

In March, Atlas executives sent additional letters to crewmembers reiterating the consequences of union certification. According to one of the letters, Atlas wanted to ensure that crewmembers made “an informed decision about representation, based on the financial impact that choosing representation would have on you and your family.” “So there is no misunderstanding,” one of the letters explained, “a portion of your current paycheck will stop being paid if the NMB [National Mediation Board] certifies a union.” The letter noted that all cockpit crewmembers stood to lose at least 10 percent of their annual pay should they lose eligibility. Given Atlas Air’s substantial profits in recent years, the document noted the cost of unionization could be much higher.

Despite Atlas’s letters, ALPA won the representation election held on April 26. Two days later, the NMB certified ALPA *222 as the collective bargaining representative. Upon the announcement of the election results, but before the NMB certification, Atlas terminated the profit-sharing plan for cockpit crewmembers. The plan’s termination reduced cockpit crewmembers’ annual compensation by over 25 percent. The profit-sharing plan remained in place for Atlas employees without union representation. At the time this suit was instituted, Atlas and ALPA had yet to enter into any contract negotiations.

B.

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Bluebook (online)
232 F.3d 218, 344 U.S. App. D.C. 1, 165 L.R.R.M. (BNA) 2892, 2000 U.S. App. LEXIS 29552, 2000 WL 1694394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-air-inc-v-air-line-pilots-assn-cadc-2000.