International Brotherhood of Teamsters v. North American Airlines

518 F.3d 1052, 2008 WL 614243
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 6, 2008
Docket05-17436
StatusPublished
Cited by5 cases

This text of 518 F.3d 1052 (International Brotherhood of Teamsters v. North American Airlines) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Brotherhood of Teamsters v. North American Airlines, 518 F.3d 1052, 2008 WL 614243 (9th Cir. 2008).

Opinion

IKUTA, Circuit Judge:

This appeal presents the question whether section 2, First of the Railway Labor Act (RLA), 45 U.S.C. § 152 First, read in conjunction with other provisions of the RLA, imposes a status quo requirement prohibiting carriers from unilaterally altering terms or conditions of employment once negotiations toward an initial collective bargaining agreement have begun, but before the agreement has been completed. Following the Supreme Court’s holding in Williams v. Jacksonville Terminal Co., we hold that it does not. 315 U.S. 386, 402-03, 62 S.Ct. 659, 86 L.Ed. 914 (1942). We also hold that the district court acted well within its discretion in denying injunctive relief in this case. See Chicago & N.W. Ry. Co. v. United Transp. Union, 402 U.S. 570, 583, 91 S.Ct. 1731, 29 L.Ed.2d 187 (1971); Reg’l Airline Pilot Ass’n v. Wings West Airlines, Inc. (Wings West), 915 F.2d 1399, 1402-03 (9th Cir.1990).

I

North American Airlines (“North American”), a Delaware corporation, is a certi *1054 fied air carrier engaged in scheduled and charter passenger service, as well as service for the Department of Defense. See 45 U.S.C. §§ 181-182. North American employs approximately 600 employees, including 120 pilots. In January 2004, the National Mediation Board certified the International Brotherhood of Teamsters (IBT) as the collective bargaining representative for the pilots of North American. See 45 U.S.C. § 152 Ninth. The parties commenced negotiations for an initial collective bargaining agreement in April 2004 and negotiations continue to the present. 1

Citing fundamental changes and turbulent times facing the airline industry, North American sent a memorandum to all employees on November 5, 2004, notifying them of its plans to cut costs and increase productivity in order to maintain operations. 2 North American announced that it would reduce costs by: instituting cost-sharing for health premiums; making changes to scheduling and compensation for flight crews, including changes to pilot scheduling; and reducing senior management salaries, including those of the chief executive officer and chief operation officer. Regarding the pilots, North American sought to “achieve a 12-18 percent reduction in [its] flight deck costs per block hour,” in other words, its costs “incurred in operating [its] aircraft as it relates to the pilots.” North American could achieve these cost reductions either through scheduling changes designed to increase productivity or through wage cuts, though it considered the pilots’ cooperation necessary to execute effectively any scheduling changes.

North American discussed these company-wide plans and sought input from IBT during negotiations with the pilots on November 9-11 and December 7-9, 2004, though it asserted a prerogative to institute changes unilaterally, irrespective of the pilots’ approval. After the parties’ negotiations in November and December 2004, North American deemed the pilots to be unwilling to provide the necessary cooperation for a successful overhaul of the schedule. It therefore made the unilateral decision to reduce its pilot costs through wage reductions. IBT applied to the National Mediation Board for mediation services on December 10, 2004, and the Board instituted mediation proceedings on December 13, 2004.

On December 28, 2004, North American issued another memorandum to its employees, updating and superceding its prior announcements with respect to its cost-reduction plan. With respect to its non-pilot employees, North American announced a 15% salary reduction for the chief executive officer and chief operation officer; a 10% reduction for other senior *1055 management and a twelve-month moratorium on merit-based salary increases; 20% sharing of healthcare premiums; flight attendant payroll reduction of 14% through productivity increases; and a freeze of seniority-based flight attendant wage increases. With respect to the pilots, North American announced a wage reduction of 8%; a freeze of seniority-based increases to hourly wage rates; a reduction of the minimum monthly flight hour guarantee from 67 to 60 hours; and an overtime flight hour wage rate reduction from 150% to 120%.

IBT filed this action on January 7, 2005, after the first of North American’s announced changes took effect. By its complaint, IBT alleged that North American violated its obligations under section 2, First and Fourth of the RLA, 45 U.S.C. §§ 152 First and Fourth, 3 by unilaterally altering the pilots’ rates of pay, rules, and working conditions after the parties had commenced negotiations regarding an initial collective bargaining agreement. IBT sought preliminary and permanent injunc-tive relief from any unilateral alteration to the pilots’ working conditions and a return to the working conditions that eristed pri- or to the commencement of negotiations.

After a two-day hearing (in July 2005), the district court denied the motion for preliminary injunctive relief on September 14, 2005, on the ground that IBT failed to demonstrate a likelihood of success on the merits on either of its section 2 claims. The district court ruled that section 2, First does not require the employer to maintain the status quo before the completion of an initial collective bargaining agreement. The court further held that section 2, First did not entitle IBT to an injunction to maintain the status quo. 4 The district court entered final judgment in favor of North American on November 16, 2005.

On appeal, IBT argues that North American violated its obligations under section 2, First when it unilaterally altered the rates of pay, rules and working conditions of its pilots in the midst of the parties’ collective bargaining negotiations, and that IBT was entitled to an injunction to require North American to maintain the status quo. 5

We review a district court’s grant or denial of a preliminary injunction for an abuse of discretion. Perfect 10, Inc. v. Amazon.com, Inc., 508 F.3d 1146, 1157 (9th Cir.2007). We review the district court’s findings of fact for clear error, and its conclusions of law de novo. Id.

II

A

Congress initially enacted the RLA, 45 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
518 F.3d 1052, 2008 WL 614243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-teamsters-v-north-american-airlines-ca9-2008.