INTERNATIONAL BROTHERHOOD OF TEAMSTERS AIRLINE DIVISION v. Frontier Airlines, Inc.

708 F. Supp. 2d 750, 188 L.R.R.M. (BNA) 2385, 2010 U.S. Dist. LEXIS 40044, 2010 WL 1608948
CourtDistrict Court, E.D. Wisconsin
DecidedApril 20, 2010
DocketCase 10-C-0203
StatusPublished
Cited by1 cases

This text of 708 F. Supp. 2d 750 (INTERNATIONAL BROTHERHOOD OF TEAMSTERS AIRLINE DIVISION v. Frontier Airlines, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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INTERNATIONAL BROTHERHOOD OF TEAMSTERS AIRLINE DIVISION v. Frontier Airlines, Inc., 708 F. Supp. 2d 750, 188 L.R.R.M. (BNA) 2385, 2010 U.S. Dist. LEXIS 40044, 2010 WL 1608948 (E.D. Wis. 2010).

Opinion

DECISION AND ORDER

LYNN ADELMAN, District Judge.

I. BACKGROUND

Plaintiff International Brotherhood of Teamsters Airline Division (“IBT”) brings this action under the Railway Labor Act (“RLA”), 45 U.S.C. § 151 et seq., against defendants Frontier Airlines, Inc. (“Frontier”) and Republic Airways Holdings, Inc. (“RAH”), a holding company that purchased Frontier as a subsidiary while it was in bankruptcy. RAH owns other airline subsidiaries, including Republic Airlines (“Republic”), Chautauqua and Shuttle America. Recently, RAH purchased Midwest Airlines and currently markets some flights under the Midwest name. However, RAH does not maintain an independent subsidiary for Midwest; rather, it integrated Midwest’s operations with those of its other subsidiaries. Further, RAH intends to merge Midwest and Frontier into a single airline operated under the Frontier name.

This action arises out of RAH’s decision to transfer a portion of Frontier’s maintenance work — its “mechanics and related” and “stock clerk” functions — from Denver to Milwaukee. Plaintiff IBT represents the Frontier employees who perform such work. As Frontier transfers this work to Milwaukee, the work will be performed by non-union Republic employees. IBT does not contend that RAH’s decision to transier the maintenance work to Milwaukee is unlawful; rather, it contends that the work in Milwaukee must be performed by Frontier employees consistent with the terms of the collective bargaining agreements between IBT and Frontier.

Before me now is IBT’s motion for a preliminary injunction prohibiting RAH from transferring Frontier work to nonunion Republic employees and RAH’s motion to dismiss the complaint for lack of subject matter jurisdiction. RAH’s jurisdictional motion turns on RAH’s contention that once it purchased Frontier and began integrating its operations with its other subsidiaries, it arguably formed a “single transportation system” within the meaning of RLA jurisprudence. RAH further contends that if a single transportation system does exist, then IBT no longer represents a majority of the relevant “crafts or classes” 1 because the maintenance employees of RAH’s other subsidiaries (who together constitute a majority of the single system) are not represented by any union, let alone IBT. In RAH’s view, if IBT no longer represents a majority of the relevant crafts or classes, RAH may disregard the collective bargaining agreements between IBT and Frontier. RAH’s position is that I lack subject matter jurisdiction because the principal dispute is whether a single transportation system exists (and, if so, whether IBT represents a majority of the relevant workers) and that this constitutes a “representation dispute” that falls within the exclusive jurisdiction of the National Mediation Board (“NMB”). RAH further argues that even if I had jurisdiction, IBT would not be entitled to a preliminary injunction because it has unclean hands.

*753 II. DISCUSSION

A. Subject Matter Jurisdiction

The RLA governs labor relations in the rail and airline industries, and its purpose is to prevent labor disputes from disrupting commerce among the states, Burlington N. R.R. Co. v. United Transp. Union, 862 F.2d 1266, 1271 (7th Cir.1988); ABA Section of Labor and Employment Law (hereinafter “ABA Section”), The Railway Labor Act 2 (2d ed.2005). To this end, the RLA creates a regulatory scheme in which the parties are expected to attempt to resolve their disputes by conference and agreement. RLA § 2, Second, 45 U.S.C. § 152, Second. If the parties are unable to agree, the dispute proceeds to one of several dispute-resolution mechanisms, depending on the nature of the dispute. Courts resolve certain categories of disputes, and bodies such as the National Mediation Board (“NMB”) and boards of adjustment resolve others. 2 ABA Section, supra, at 16-18. When a party to a dispute questions the other party’s compliance with the RLA and one of the parties seeks judicial relief, the court’s first duty is to determine how and where the dispute will be resolved. Id.

RLA jurisprudence recognizes three principal categories of disputes — major, minor and representation. Major disputes are those “that cannot be resolved through interpretation or analysis of a collective bargaining agreement.” Burlington N. R.R. Co., 862 F.2d at 1271. Thus, major disputes arise when there is no collective bargaining agreement or where one party wants to change the terms of the agreement. Id. (quoting Elgin, Joliet & Eastern Ry. v. Burley, 325 U.S. 711, 723, 65 S.Ct. 1282, 89 L.Ed. 1886 (1945)).

Minor disputes are those involving the application or interpretation of an existing collective bargaining agreement. Id. The RLA prescribes that such disputes be resolved by binding arbitration before a board of adjustment. 45 U.S.C. § 184. Although a federal court has no authority to interpret the terms of a collective bargaining agreement in order to resolve a minor dispute, the court may compel arbitration before the appropriate adjustment board and may enjoin the union from striking while the parties are engaged in arbitration or exhausting other minor dispute-resolution procedures. United Tramp. Union v. Gateway W. Ry. Co. (“Gateway Western”), 78 F.3d 1208, 1213 (7th Cir.1996). Further, a court may enjoin an action that might frustrate the ability of an adjustment board to provide an effective remedy. ABA Section, supra, at 26.

Representation disputes involve the composition of the collective bargaining unit and the identity of that unit’s authorized representative for collective bargaining purposes. Gateway Western, 78 F.3d at 1213. RLA Section 2, Ninth, 3 empow *754 ers the NMB to resolve representation disputes and requires carriers to bargain with the representatives certified by the NMB. (The NMB will certify a union if after an election the NMB determines that the union has the support of a majority of the craft or class. See RLA § 2, Fourth, 45 U.S.C. § 152, Fourth.) In a group of cases known as the Switchmen’s Trilogy, 4

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708 F. Supp. 2d 750, 188 L.R.R.M. (BNA) 2385, 2010 U.S. Dist. LEXIS 40044, 2010 WL 1608948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-teamsters-airline-division-v-frontier-wied-2010.