Flight Options, LLC v. International Brotherhood of Teamsters, Local 1108

863 F.3d 529, 2017 FED App. 0152P, 2017 WL 3014355, 209 L.R.R.M. (BNA) 3295, 2017 U.S. App. LEXIS 12728
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 17, 2017
Docket16-3606
StatusPublished
Cited by33 cases

This text of 863 F.3d 529 (Flight Options, LLC v. International Brotherhood of Teamsters, Local 1108) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flight Options, LLC v. International Brotherhood of Teamsters, Local 1108, 863 F.3d 529, 2017 FED App. 0152P, 2017 WL 3014355, 209 L.R.R.M. (BNA) 3295, 2017 U.S. App. LEXIS 12728 (6th Cir. 2017).

Opinion

OPINION

HELENE N. WHITE, Circuit Judge.

This action under the Railway Labor Act (RLA) concerns the merger of two airlines—an acquiring airline with unionized pilots and an acquired airline with newly unionized pilots—and their efforts to bring both groups under a new, joint collective-bargaining agreement. The airlines and their pilots’ union dispute whether the creation of an integrated seniority list (ISL) of pilots is exclusively committed to the union, or whether it is subject to collective bargaining with the airlines. The union asks us to find this disagreement to be a “major” dispute under the RLA and to affirm the district court’s preliminary injunction ordering the airlines to accept the ISL 'proffered to them by the unión. The airlines ask us to find this dispute to be “minor” and subject to exclusive arbi-tral jurisdiction, and to vacate the preliminary injunction. The airlines assert the right not to accept a union-proffered seniority list and instead to participate in the seniority-integration process through collective bargaining. Because this assertion is not arguably justified by the parties’ existing collective-bargaining agreement, the dispute is major, leading us to AFFIRM in part and VACATE in part. 1

I

The International Brotherhood of Teamsters, Airline Division (Teamsters) and its Local 1108 (together, the- Union) represent the pilots of Flight Options, LLC (Flight Options) and Flexjet, LLC (Flexjet, and together with Flight Options, the Carriers), two merged airlines that offer fractional ownership of jet aircraft. Flight Options and its pilots have had a collective-bargaining agreement since 2010 (the 2010 CBA), while Flexjet’s pilots are newly unionized and are not yet party to a CBA.

Flight Options is based in Cleveland, Ohio, and is a “carrier” for purposes of the RLA. See 45 U.S.C. § 181. Michael Silves-tro (Silvestro) is CEO of Flight; Options and Kenneth Ricci (Ricci) is chairman of Flight Options and its parents. Fight Options has approximately 360 pilots who are represented by the Union and operate under the 2010 CBA.

Flexjet, another “carrier” under the RLA, has approximately 340 pilots and was acquired in December 2013 by a Flight Options parent. Prior to the acquisition, Flexjet’s pilots were at-will employees. On September 30, 2015, the National Mediation Board (NMB) found that Flight Options and Flexjet were a single transportation system for purposes of labor representation under the RLA. 42 N.M.B. 174,181 (2015). On December 15, 2015, the Union was certified after an election as the representative of the combined Flight Options and Flexjet pilot groups. 2 Silvestro *534 and Ricci serve as CEO and chairman at Flexjet, too.

Although the Union was elected to represent the Flexjet pilots, these pilots are not yet parties to the 2010 CBA (or a successor joint CBA). Section 1.5 of the 2010 CBA governs the integration of pilots from an acquired airline; parent entities of Flight Options agreed to be bound by Section 1 of the 2010 CBA on behalf of themselves and their successors.

On appeal, the parties dispute whether the integration of the pilot groups’ seniority lists 3 is solely a Union matter (in which case, the Carriers must accept the list the Union proffers) or whether the Carriers should have been allowed to participate in negotiating the list.

Section 1.5(c)(1) of the 2010 CBA governs the creation of the ISL when Flight Options acquires another carrier:

If Pilots of the acquired carrier are hired by the Company, the seniority lists of the respective Pilot groups shall be integrated pursuant to Teamsters Merger Policy if both groups are represented by the [Teamsters], or if the Pilots of the acquired airline are not represented by the [Teamsters], then pursuant to Sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions. Seniority integration procedures shall be promptly initiated following announcement of an operational merger affecting the seniority of the pilot groups. The Company or other Successor, as appropriate, shall accept the integrated seniority list. There shall be no system flush or removal of Pilots from then-positions as a result of seniority list integration.

2010 CBA, R. 8-2, PID 89. 4

Under this provision, there are two mutually exclusive processes for creating an ISL depending on whether the Union represents both the Flight Options pilots and the acquired pilot group, or only the former. If both pilot groups are represented *535 by the Union, the ISL is created “pursuant to Teamsters Merger Policy,” and the Carriers “shall accept the [ISL].” Id. Otherwise, the ISL is created “pursuant to Section 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions,” and again, the Carriers “shall accept the [ISL] ” that results from that process. Id.

Ricci summed up the process in a presentation he made to the pilots:

If [the Flexjet pilots vote to be represented by the Union], then the Union’s first job will be to integrate the seniority lists. That’s—that’s what they do.
If there is no Union, then it will fall upon management to integrate the seniority lists. So I understand why many people want to know when it is going to happen, but I’m the last guy that gets to do it.

D. Ct. Tr., R. 43, PID 1063.

Soon after it was elected to represent the acquired pilot group, the Union appointed the Flight Options Merger Committee (FOMC) and the Flexjet Merger Committee (FXMC)—two autonomous committees each comprised of three pilots from their respective groups—and charged them with the task of creating an ISL. Laddie Hostalek, business agent for Local 1108 and a Flight Options pilot, testified that the members of the FOMC were appointed by the Flight Options Master Executive Council and the members of the FXMC were appointed by the Flexjet Pilots Leadership Council.

Adam Fine, a Flexjet pilot and chairman of the FXMC, testified regarding the work of the two merger committees. According to Fine, in order to create a fair and equitable ISL, the committees reviewed precedent airline mergers and considered draft lists based on different seniority-calculation methodologies; they also conducted statistical analyses of the impact of different methodologies on pilot subgroups. After evaluating the results, the committees determined that given the different founding dates of Flight Options and Flexjet, a date-of-hire methodology would place half the Flexjet pilots at the “extreme bottom” of the ISL. D. Ct. Tr., R. 43, PID 1159-60. They instead unanimously adopted an ISL based on longevity, which they believed would be fair and equitable to both groups. 5

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
863 F.3d 529, 2017 FED App. 0152P, 2017 WL 3014355, 209 L.R.R.M. (BNA) 3295, 2017 U.S. App. LEXIS 12728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flight-options-llc-v-international-brotherhood-of-teamsters-local-1108-ca6-2017.