George v. Northwest Airlines, Inc.

351 F. Supp. 2d 310, 2005 WL 32785
CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 7, 2005
Docket2:02-cv-06405
StatusPublished
Cited by2 cases

This text of 351 F. Supp. 2d 310 (George v. Northwest Airlines, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George v. Northwest Airlines, Inc., 351 F. Supp. 2d 310, 2005 WL 32785 (E.D. Pa. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

RUFE, District Judge.

Before the Court are separate Motions for Siimmary Judgment filed by Defendant Northwest Airlines, Inc. (“Northwest”) and Defendant International Association of Machinists and Aerospace Workers, District 143, Local 1776 (“Union”). Plaintiffs have filed a single response to both Motions. For the reasons set forth below, the Court grants both Motions and enters judgment in favor of Defendants.

I. Factual Background

Plaintiffs Denise A. George and Timothy P. Kincaid bring this hybrid action 1 against their former employer, Northwest, *312 and their former labor organization, Union, pursuant to the Railway Labor Act, 45 U.S.C. § 151 et seq. Plaintiffs’ Amended Complaint alleges that: 1) Northwest violated the CBA by terminating them without cause; 2) the Union violated its duty of fair representation during the grievance process, because it permitted delays in the process, failed to take the case to arbitration, and endorsed an unfair Last Chance Agreement (LCA) for Plaintiffs’ reinstatement; and 3) Northwest pressured the Union to process Plaintiffs’ grievances in a perfunctory manner, in an attempt to undermine the power of the Union.

At all relevant times, Plaintiffs were Northwest customer service agents at the Lehigh Valley International Airport, and were members of the Union. In late April 2001, Northwest managers learned that Plaintiffs might be improperly discounting tickets for friends and family members by using manual pricing to override standard fares and restrictions. During Northwest’s ensuing investigation, Ms. George gave sworn testimony that she had discounted tickets and fraudulently issued travel vouchers to family and friends, and that she knew it was wrong. Mr. Kincaid gave sworn testimony admitting that he issued discounted tickets to family, friends, and an automobile racing team based in Virginia without case-by-case approval from his supervisor. 2 Michael Burke (“Burke”), who was Plaintiffs’ supervisor at that time, testified that he was unaware of and did not authorize Plaintiffs’ fare discount activity. 3

Northwest conducted an audit of all customer service agents based at that airport in May, 2001. The audit report showed that eighteen of the twenty-two employees had engaged in manual price discounting fewer than ten times each over the period of the audit. 4 In contrast, Kincaid had done so 254 times, and George had done so 169 times over the same time period. Only two other employees had similarly elevated numbers, and Burke indicated that their discounts had been authorized for legitimate business purposes-.

On May 22, 2001, Plaintiffs were terminated for discounting airfares for family, friends, and acquaintances without authorization, and for providing false or misleading information to Northwest during the investigation. Plaintiffs then filed grievances according to the terms of their collective bargaining agreement (“CBA”). The CBA contains a three step grievance process that concludes with arbitration by the System Board of Adjustment (the “Board”), chaired by a neutral arbitrator. Under the CBA, if the Board finds that employees were discharged without just cause, Northwest must reinstate them.

*313 In response to Plaintiffs’ grievances, Northwest provided Plaintiffs with a Step One hearing on May 23, 2001, at which the Union’s general chair, Ronald Cirrone (“Cirrone”) represented Plaintiffs. Northwest denied Plaintiffs’ grievances at Step One.

On May 30, 2001, the Union appealed the grievances to the next level. Step Two involves a meeting between the union representative and Northwest to see if any resolution can be reached. Under the CBA, neither the Union nor Northwest is required to invite grieving employees to participate in these meetings, and Plaintiffs were not invited to participate in this case. The Step Two meeting should have occurred within fifteen days of the request, 5 and a decision should have been issued within ten days of the meeting. Therefore, Plaintiffs should have received a written notice of the Step Two decision by June 25, 2001 at the latest. Instead, on August 6, 2001, Plaintiffs received a Last Chance Agreement (“LCA”), which Northwest had issued on July 17, 2001 and forwarded to Cirrone. The LCA provided for reinstatement subject to twenty-four months of probation. While Plaintiffs were on probation, Northwest could terminate them for any violation of company rules and policies. Plaintiffs could grieve the merits of any alleged violation but could not grieve the termination itself if they were found to have violated a rule or policy. The LCA also required Plaintiffs to admit'wrongdoing and to agree that the time between termination and reinstatement would be considered a disciplinary suspension without pay. Plaintiffs rejected this settlement proposal, and asked Cir-rone to proceed to arbitration. Cirrone advised Plaintiffs that he would file an arbitration request for them, but the decision to proceed with the grievances would be made by the Union’s District 143 review committee, and not 'by Plaintiffs nor by Cirrone alone. 6

On August 16, 2001, Cirrone notified Northwest that it had timely appealed Plaintiffs’ grievances to the Board. Because the events of September 11, 2001 caused a backlog in the grievance system, Plaintiffs’ grievances were not processed for many months. However, Cirrone met with Northwest’s labor division in November, and finally, on January 16, 2002, Northwest offered both Plaintiffs another LCA, which was identical to the July 17, 2001 LCA. Around the same time, the Union reviewed the merits of the Plaintiffs’ cases in light of the facts, the contract provisions, and prior arbitration decisions applicable to Plaintiffs’ cases. The Union decided that it would not pursue arbitration of the grievances, and informed the Plaintiffs that it would withdraw their grievances from the Board docket if Plaintiffs did not sign the January 16, 2002 LCAs. When Plaintiffs declined to sign the January 16, 2002 LCAs, the Union withdrew their grievances. This litigation ensued.

II. Northwest Airlines’ Renewed 12(b)(1) Motion to Dismiss for Lack of Subject Matter Jurisdiction

Northwest asserts that the Court lacks subject matter jurisdiction over Plaintiffs’ *314 claims against Northwest. 7 When a defendant makes a factual attack on subject matter jurisdiction, 8 no presumption of truth is accorded to the plaintiffs allegations, and the Court must weigh the evidence related to jurisdiction. 9

Plaintiffs’ claims are governed by the Railroad Labor Act (“RLA”). 10

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Bluebook (online)
351 F. Supp. 2d 310, 2005 WL 32785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-v-northwest-airlines-inc-paed-2005.