International Brotherhood of Teamsters, Airline Division v. Southern Air, Inc.

District Court, District of Columbia·Decided March 31, 2020·No. Civil Action No. 2019-1948·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

ATLAS AIR, INC., et al., Plaintiffs,

v.

Case No. 19-cv-3223 (CRC)

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, AIRLINE DIVISION, et al.,

Defendants.

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, AIRLINE DIVISION, et al.,

Plaintiffs,

v. Case No. 19-cv-1948 (CRC)

SOUTHERN AIR, INC., Defendant.

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, AIRLINE DIVISION, et al.,

Plaintiffs,

Case No. 19-cv-2723 (CRC)

v.

ATLAS AIR, INC., Defendant.

MEMORANDUM OPINION

The merger between Southern Air, Inc. (“Southern”) and Atlas Air, Inc. (“Atlas”) has been experiencing turbulence. The two airlines have been waiting since 2016 for the union representing both carriers’ pilots—the International Brotherhood of Teamsters (“IBT”)—to begin negotiations to integrate the two airlines’ seniority lists and collective bargaining

agreements. After the airlines successfully compelled arbitration of the parties’ disputes, both airlines’ arbitration boards issued awards in favor of the airlines. See Janger Decl., Exh. 11 (“Southern Award”); id., Exh. 12 (“Atlas Award”).1 The union then sued the airlines seeking to vacate both arbitration awards. The Court dismissed those suits in January 2020 after concluding that the awards were consistent with the respective collective bargaining agreements and federal law. See Int’l Bhd. of Teamsters v. Southern Air, Inc. (“Southern Air I”), No. 19-cv-1948, 2020 WL 435428 (D.D.C. Jan. 28, 2020) (Cooper, J.); Int’l Bhd. of Teamsters v. Atlas Air, Inc. (“Atlas Air I”), No. 19-cv-2723, 2020 WL 435353 (D.D.C. Jan. 28, 2020) (Cooper, J.).

The proceedings now approach their final descent: The airlines seek summary judgment to enforce the arbitration awards, while the union moves to vacate the judgments dismissing their challenges to the awards. Finding no basis to depart from its rulings in Southern Air I and Atlas Air I and no remaining disputes of material fact, the Court will enter summary judgment in the airlines’ favor and deny the union’s cross-motion for partial summary judgment and motions to vacate the Court’s prior rulings. Consistent with the terms of both arbitration awards, the union shall—within 45 days of today’s opinion and order—present both airlines with an integrated seniority list and thereafter commence joint collective bargaining agreement negotiations and. I. Background The Court recounts only the facts necessary to decide the instant motions. Readers may refer to the factual background laid out in the Court’s prior opinions for additional detail. See Southern Air I, 2020 WL 435428, at *1–2; Atlas Air I, 2020 WL 435353, at *1–2.

1 Unless otherwise noted, citations are to filings in the airlines’ action to enforce the arbitration awards, Atlas Air, Inc. v. Int’l Bhd. of Teamsters, No. 19-cv-3223.

In January 2016, the parent company of Atlas Air entered into an agreement to acquire the parent company of Southern Air. It subsequently announced a plan to operationally merge Southern Air into Atlas Air. Atlas Award 1. Each airline has a collective bargaining agreement (“CBA”) with IBT—the exclusive collective bargaining agent of each airline’s pilots—that governs the pilots’ rates of pay, rules, and working conditions. See Carlson Decl., Exh. 1 (“Atlas CBA”); id., Exh. 2 (“Southern CBA”). Invoking the merger provisions in each airline’s CBA, the airlines demanded that IBT begin negotiations to develop an integrated seniority list (“ISL”) and joint collective bargaining agreement (“JCBA”).2 Atlas Award 2; Southern Award 2.

IBT refused these demands, prompting management to submit grievances to their respective arbitration boards in April 2016 and January 2017. Southern Award 3; Atlas Award 2. IBT responded that the disputes were not arbitrable. Southern Award 3; Atlas Award 2. The airlines then obtained an order compelling arbitration from the United States District Court for the Southern District of New York, which was affirmed by the Second Circuit. Atlas Air, Inc. v.

2 The Southern CBA provided that “[i]n the event of a merger, this Agreement shall be merged with the merging air carrier’s crewmember collective bargaining agreement.” Southern CBA § 1.B.3. “[I]f such merged agreement is not completed within nine (9) months from the date an integrated Master Seniority List is submitted to the surviving entity, the parties shall submit all outstanding issues to binding interest arbitration.” Id.

The Atlas CBA provided that in the event “the Company acquires another air carrier and the Company decides there will be a complete operational merger between the Company and such other air carrier, or if the Company decides there will be a complete operational merger between the Company and an affiliated air carrier, the following shall apply” where the same union represents the crewmembers of the acquisition target. Atlas CBA § 1.F.2. First, “the Union’s Merger Policy shall be utilized to integrate the two seniority lists.” Id. § 1.F.2.a.i. Second, “the parties shall on a timely basis begin negotiations to merge the two pre-integration collective bargaining agreements into one agreement.” Id. § 1.F.2.b.iii. “If,” consistent with the analogous provision in the Southern CBA, “a merged agreement has not been executed within nine (9) months from the date that the Union presents to the Company a merged seniority list . . . , the parties shall jointly submit the outstanding issues to binding interest arbitration.” Id.

Int’l Bhd. of Teamsters, 293 F. Supp. 3d 457 (S.D.N.Y. 2018), aff’d, 943 F.3d 568 (2d Cir. 2019).

The parties proceeded to arbitration. The Southern System Board of Adjustment (“Southern Board”) granted the Southern grievance in June 2019, Southern Award 24, and the Atlas System Board of Adjustment (“Atlas Board”) granted the Atlas grievance in August 2019, Atlas Award 13. Both awards ordered the union to—within 45 days of each order—present an integrated seniority list to management and thereafter begin negotiations for a joint collective bargaining agreement. See Southern Award 23; Atlas Award 12.

In June and September 2019, the union filed petitions to vacate the arbitration awards in this Court. See Compl., Southern Air I, No. 19-cv-1948 (D.D.C. June 28, 2019); Compl., Atlas Air I, No. 19-cv-2723 (D.D.C. Sept. 11, 2019). The airlines subsequently moved to dismiss the petitions under Federal Rule of Civil Procedure 12(b)(6). In October 2019, the airlines separately sued the union to enforce the arbitration awards and filed a motion for summary judgment that raised the same issues that they had raised in their motions to dismiss the union’s petitions. To streamline resolution, the Court held a status conference in all three matters on October 31, 2019, at which it stayed briefing in the airlines’ enforcement action while it considered the union’s petitions to vacate. See Minute Order (Oct. 31, 2019). On January 28, 2020, the Court dismissed both of the union’s petitions to vacate the arbitration awards. See Southern Air I, 2020 WL 435428, at *12; Atlas Air I, 2020 WL 435353, at *10.

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

International Brotherhood of Teamsters, Airline Division v. Southern Air, Inc., (D.D.C. 2020).

International Brotherhood of Teamsters, Airline Division v. Southern Air, Inc. (International Brotherhood of Teamsters, Airline Division v. Southern Air, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Elgin, Joliet & Eastern Railway Co. v. Burley
325 U.S. 711 (Supreme Court, 1945)
Union Pacific Railroad v. Sheehan
439 U.S. 89 (Supreme Court, 1979)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Myrna O'Dell Firestone v. Leonard K. Firestone
76 F.3d 1205 (D.C. Circuit, 1996)
Harold Martin v. Department of Justice
488 F.3d 446 (D.C. Circuit, 2007)
National Federation of Independent Business v. Sebelius
132 S. Ct. 2566 (Supreme Court, 2012)
National Trust for Historic Preservation v. Department of State
834 F. Supp. 453 (District of Columbia, 1993)
Weiss v. La Suisse, Societe D'Assurances
293 F. Supp. 2d 397 (S.D. New York, 2003)
Green v. American Broadcasting Companies, Inc.
647 F. Supp. 1359 (District of Columbia, 1986)
Major League Baseball Players Assn. v. Garvey
532 U.S. 504 (Supreme Court, 2001)
Williams v. Blueprint, LLC
952 F. Supp. 2d 209 (District of Columbia, 2013)
Mohammadi v. Islamic Republic of Iran
947 F. Supp. 2d 48 (District of Columbia, 2013)
Lardner v. Federal Bureau of Investigation
875 F. Supp. 2d 49 (District of Columbia, 2012)
Atlas Air, Inc. v. International Brotherhood of
928 F.3d 1102 (D.C. Circuit, 2019)
Atlas Air, Inc. v. Int'l Bhd. of Teamsters
293 F. Supp. 3d 457 (S.D. Illinois, 2018)