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APA Files Lawsuit
“To Clarify Legal Gray Area” In American Airlines Bankruptcy By Shane Nolan |
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March 4, 2012 - The Allied Pilots Association (APA),
certified collective bargaining agent for the 10,000
pilots of American Airlines, filed an action for
declaratory judgment with the bankruptcy court asking
the judge to clarify how the Railway Labor Act and
Section 1113 of the U.S. Bankruptcy Code interrelate.
“Our objective is to enhance the prospects of a
consensual agreement between the Allied Pilots
Association and airline management in the ongoing
restructuring negotiations,” said APA President Captain
Dave Bates.
“APA believes that a consensual agreement between our
union and airline management is in our company’s
long-term best interests. Accordingly, APA has asked the
bankruptcy court to clarify a legal gray area regarding
rejection of airline industry collective bargaining
agreements in bankruptcy.”
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While
Section 1113 of the U.S. Bankruptcy Code outlines procedures for
rejecting existing labor contracts during their term, the
comprehensive collective bargaining agreement between APA and
American Airlines expired in 2008. Since then, APA and American
Airlines have been negotiating under federal labor law
provisions that prohibit airline management from changing rates
of pay, rules and working conditions until the National
Mediation Board (NMB) finishes mediating toward an agreement.
“The
Railway Labor Act provides specialized procedures for peaceful
resolution of labor contracts in the airline industry, and the
conflict between the bankruptcy code and the Railway Labor Act’s
requirements has not been thoroughly adjudicated,” Bates said.
Under the
terms of the Railway Labor Act, the status quo period remains in
force until the NMB declares a negotiations impasse and proffers
binding interest arbitration. APA has been seeking such a
proffer from the NMB. If either party declines the proffer, a
30-day cooling-off period begins.
“While the
Railway Labor Act permits self-help by both parties, in a
significant Chapter 11 proceeding such as AMR’s reorganization,
it is conceivable that the White House would appoint a
Presidential Emergency Board (PEB) before the end of the
cooling-off period to prevent disruption to interstate
commerce,” Bates said.
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