AMERICAN AIRLINES/TWU/IAM&AW DISPUTE

 

RESOLUTION COMMITTEE

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                                                                                                :

In the Matter of Interpretations/ Clarifications and                :

Supplemental Awards of the April 29, 2002 Seniority            :

Integration Opinion and Award involving the                         :

                                                                                                :

TRANSPORT WORKERS UNION OF AMERICA             :

                                                                                                :

And                                                                                         :

                                                                                                :

INTERNATIONAL ASSOCIATION OF MACHINISTS     :

AND AEROSPACE WORKERS                                          :

                                                                                                :

And                                                                                         :

                                                                                                :

AMERICAN AIRLINES                                                         :

                                                                                                :

Involving the Integration of Seniority Lists Of the                  :

Mechanics and Related Employees, Fleet Service                   :

Employees, Stock Clerks and Flight Simulator                       :

Technicians                                                                             :

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Introduction

 

            In the April 29, 2002 Seniority Integration Opinion and Award involving the Mechanics and Related Employees, Fleet Service Employees, Stock Clerks and Flight Simulator Technicians of American Airlines (hereinafter "American", "AA” or the "Carrier") and Trans World Airlines (hereinafter "TWA” or "TWA LLC") a provision was made for the establishment of a Dispute Resolution Committee (hereinafter the “DRC" or the "Committee").

 

            The Opinion and Award involving the above identified crafts or classes was initially implemented on or about May 1, 2002.

 

            Subsequent to the issuance of the Opinion and Award, American, the Transport Workers Union of America (hereinafter the "TWU") and the International Association of Machinists and Aerospace Workers (hereinafter the "IAM") agreed to have the below-signed Arbitrator serve as the "Dispute Resolution Committee".

 

            The Arbitrator met with the three parties on July 11, 2002 in Washington, D.C. for the purposes of establishing general rules of procedure and having preliminary discussions regarding potential issues concerning interpretation or clarification of the April 29, 2002 Opinion and Award.

 

            It was agreed that the Committee would meet when an issue was properly raised by any of the interested parties concerning a question of interpretation or clarification of the Award, and that the Arbitrator, serving as the sole member of the Committee, would afford the parties the opportunity to present their respective positions concerning their views as to the proper interpretation or clarification of the Award.

 

            It was further understood that after the initial meetings of the Arbitrator with the parties that the IAM would no longer be a party to the Committee's proceedings as the IAM, by operation of law, was no longer a representative of the employees.

 

            The procedures of the Committee also contemplate that when, in the discretion of the Arbitrator, it is necessary to conduct an evidentiary hearing concerning a question in dispute, the Arbitrator will so notify the Carrier and the TWU of such determination, and a hearing will be scheduled. If deemed appropriate, the TWU may advise the IAM and solicit that Organization's views concerning the issue in dispute.

 

            As certain questions of “clarification or interpretation” may, in fact, involve issues that were not addressed during the course of the evidentiary proceedings which led to the issuance of the April 29, 2002 Seniority Integration Opinion and Award, the resolution of these questions will constitute “supplemental awards”.

 

            Several of the pending “disputes/issues” involve factual findings. Accordingly, unless there are disputed facts, the Committee will accept the facts proffered as being “reliable representations of fact", and will base its decisions/ resolutions upon such representations.

 

            It should further be noted that Paragraph No. 17 of the Seniority Integration Arbitration Agreement provides as follows:

 

17. Any difference arising as to the meaning or application of the provisions of an Award made by the Arbitrator shall be referred back for a ruling to the same Arbitrator and any such ruling shall be part of and shall have the same force and effect as the original Award. No question other than, or in addition to, the questions relating to the meaning or application of the Award shall be considered by the Arbitrator.

 

            This Paragraph has been deemed to be consistent with the procedures and jurisdiction of the DRC.

 

            Clarifications, interpretations and supplemental awards will be issued in numerical order, albeit there may be certain circumstances where a numbered issue will be reserved or held in abeyance based upon the Committee's inability to address that issue prior to other issues being resolved (i.e., Dispute Nos. 2 and 14).

 

            The following decisions are being rendered this date in accordance with the Committee's procedures and jurisdiction:

 

 

Dispute No. 1: Whether the MCI terminal for Aircraft Maintenance Technicians (hereinafter "AMTs") is to be considered an outstation subject to the 25% seniority credit or part of the MCI overhaul base, which is subject to the 100% seniority credit?

 

DRC Decision No. 1: The April 29, 2002 Seniority Integration Opinion and Award indicates that the MCI Terminal is to be considered an outstation. However, within the AMT classification employees are assigned and bid from the overhaul facility, a fact which was not discussed in the seniority integration arbitration proceedings. Thus, for this occupational group, the terminal is not staffed as a separate facility, but rather, is integrated with the base and, therefore, should be construed as part of the overhaul facility for purposes of occupational seniority. Under these circumstances, and in light of the fact that American had no AMTs staffed at the Kansas City Terminal, former TWA LLC AMTs should be permitted to exercise their full seniority. This seniority approach will continue so long as the MCI Terminal is staffed from the MCI overhaul base.

 

 

Dispute No. 3: In what order are American employees with recall to STL and former TWA LLC employees with recall to STL recalled to vacancies?

 

DRC Decision No. 3: At St. Louis and MCI former TWA LLC employees exercise full seniority. However, the Award does not restrict the exercise of American seniority into these cities and facilities. Clearly, then, recall should be handled in accordance with the TWU/AA collective bargaining agreement, with all employees exercising their full occupational seniority as calculated in accordance with the principles of the TWU/AA collective bargaining agreement. Therefore, AA employees and former TWA LLC employees will be blended in occupational seniority order for purposes of recall to St. Louis.

 

 

Dispute No. 4: What is the meaning of the phrase in the Opinion and Award "as of April 9, 2001" as it relates to determining whether a particular station meets the 10% threshold of ASMs?

 

DRC Decision No. 4: The parties differ regarding the interpretation of this phrase, the Carrier and the TWU contending that the “April 9, 2001” date should be literally calculated using the ASMs of the respective carriers on that date. The IAM believes that the single date of April 9, 2001 should not be the benchmark, and to limit the measurement period to a single day is unreasonable. There was no evidence in the record which would lead the DRC to conclude that selecting a single day for measurement of the carriers' (TWA's and American's) ASMs would result in a skewed measurement. Accordingly, it is the DRC's decision that the April 9, 2001 date for calculating ASMs is appropriate and consistent with the language in the Opinion and Award. Based on the April 9, 2001 ASMs, Boston does not qualify as a “10% city”.

 

 

Dispute No. 5: For what purposes may a TWA employee exercise his occupational seniority whether it be 25% or 100%?

 

DRC Decision No. 5: The original Seniority Integration Opinion and Award stated that the 25% occupational seniority provided former TWA LLC employees in some cities based on TWA service could be used for purposes of "bidding and advancement." The Award did not specifically deal with the issue of whether this seniority also applied in cases of layoff and, at the time the Award was issued, this was not an identified issue because AA was, in fact, recalling personnel. Unfortunately, given the losses and resulting contractions being experienced throughout the industry, this question must now be resolved.

 

            Two points must be made in analyzing this issue. First, under the TWU/AA collective bargaining agreement, occupational seniority is applied for layoffs. There is an obvious presumption against denying any group of employees normal application of their occupational seniority under the agreement and the Award.

 

            Second, the basis for the original Award of occupational seniority for former TWA LLC employees beyond April 10, 2001 at some cities was recognition of the fact that the acquisition of TWA by AA and its integration into AA created work and work opportunities at these cities which did not exist prior to the transaction. During the period in which TWA LLC existed, its operations in many cities were drawn down and replaced by AA operations with a consequent layoff of TWA LLC employees and increase in AA staffing. At integration, all TWA LLC work became subject to the AA contract. TWA LLC employees needed to handle such work were brought over, but only in numbers and status that could be justified under AA's staffing criteria. The ultimate result of all of the above developments was a significant increase in AA employment levels in a number of cities.

 

            The Seniority Integration Opinion and Award stated that the enabling language in the TWU/AA contract was intended to ". . . ensure that the acquisition and seniority integration process did not deprive American's TWU-represented employees of work opportunities they could legitimately expect . . ." but did not "guarantee for [such employees] that there would be additional work opportunities . . . nor does the language dictate that American's TWU represented employees benefit at the expense of the IAM-represented workforce." Discriminating against former TWA LLC employees by denying them (and only them) application of occupational seniority in layoff situations would allow AA employees to benefit at the expense of former TWA LLC employees. Former TWA LLC employees would be among the first to be bumped out of a station, in lieu of more junior AA employees notwithstanding that, in the absence of the additional jobs brought by the integration, such employees may well have suffered layoff in the contraction. This result is clearly inequitable and not required by the contract. For this reason, the occupational seniority awarded former TWA LLC employees by virtue of the seniority integration Award does apply in layoff situations. The following will clarify how that occupational seniority will apply in the furlough process under the TWU/AA agreement.

 

 

Selection for Furlough

 

 

            Under the TWU/AA agreement, selection for furlough is based on occupational seniority in a classification when headcount in a classification is reduced at a location. Therefore, the occupational seniority under the Award which a former TWA LLC employee has at his location will be used in identifying the junior employees in the classification at a location. At STL and MCI that will be 100% of TWA seniority, at the “10% cities” (where AA employees in the classification have been recalled from a furlough that occurred prior to the April 29, 2002 Award) that will be 25% of TWA seniority, and at other locations 4/10/2001.

 

 

System Displacement

 

 

            Once a junior employee at a location is given a furlough notice, he has the opportunity to displace junior employees on a systemwide basis as identified by the juniority list. Operation of the juniority list is intended to identify those junior employees systemwide who can be displaced by the furloughed employee through normal operation of occupational seniority. However, because former TWA LLC employees’ occupational seniority varies from location to location (i.e.- 4/10/2001 and 25% and 100%), the juniority list must be constructed to account for this fact.

 

            As stated above, the DRC is unwilling to create new restrictions on use of occupational seniority applicable only to former TWA LLC employees. On the other hand, the contract already has a significant restriction on application of occupational seniority -- a system protected employee may not be "bumped" in a system displacement. Because the vast majority of TWU-represented AA employees have occupational seniority dates prior to 3/1/2001, they are system protected under the TWU/AA collective bargaining agreement. No former TWA LLC employee is system protected. For this reason, the occupational seniority provided former TWA LLC employees by virtue of the Seniority Integration Opinion and Award is of limited use to such employees in competing with system protected AA employees in a system displacement.

 

            In recognition of the above problems, the "juniority" list shall be constructed within each classification subject to furlough in the following fashion. All unprotected employees – all AA employees hired after 3/1/2001 and all former TWA LLC employees – shall be placed on the list in reverse seniority order as determined by their occupational seniority under the Seniority Integration Opinion and Award. For former TWA LLC employees their occupational seniority for placement on the list shall be the occupational seniority they are exercising at their location at the time the juniority list is constructed, i.e. – 100% of TWA seniority, or 25% of TWA seniority, or 4/10/2001, depending on location. The AA employees hired after 3/1/2001 shall be blended with the former TWA LLC employees according to the AA employees’ occupational seniority.

 

            This juniority list will be used solely for identifying the unprotected positions to which a furloughed employee (AA or former TWA LLC) may exercise his occupational seniority to displace a junior employee. With respect to the actual displacement of any employee on the juniority list, a comparison between the two employees of the occupational seniority at the location under the Award will determine whether the displacement can, in fact, occur. Junior employees displaced will similarly use their occupational seniority under the Award in determining their options under the TWU/AA agreement. A furloughed former TWA LLC employee may exercise the occupational seniority he would hold at a location under the 25% or 100% or 4/10/2001 formula in displacing an employee on the juniority list. In addition to the normal operation of the juniority list, furloughed or displaced former TWA LLC employees will be afforded the additional opportunity to displace junior employees at STL and/or MCI.

 

 

Recall

 

 

            The April 29, 2002 Opinion and Award restricted former TWA LLC employees from exercising the 25% occupational seniority provided them in “10% cities” for purposes of bidding or recall until all AA employees with recall rights to that city had either returned or refused recall. Consistent with this ruling, in the event AA employees are laid off in a city in which 25% seniority has been recognized, former TWA LLC employees with recall rights to that city based solely on pre-integration service (pre-April 29, 2002) may not exercise such recall until all AA employees have been recalled in the classification at that location. However, former TWA LLC employees who have been recalled to such a station may exercise their 25% seniority for purposes of recall in the event they are furloughed.

 

 

Dispute No. 6: Whether in order to qualify as a station at which former TWA LLC employees receive 25% of their seniority, must the station meet not only the 10% ASM threshold but also have been a station staffed by TWA with IAM-represented employees with recall rights?

 

DRC Decision No. 6:

            The premise for the Award of 25% seniority to former TWA LLC employees at some stations and cities was that if TWA operations as of April 9, 2001 were above certain levels, additional jobs would be contributed which would ameliorate any adverse impact associated with exercise of seniority. However, if such operations never actually created any jobs and there were not TWA LLC employees working at a station or with recall rights to that station at integration, then the DRC cannot find that the integration has resulted in additional jobs. Under such circumstances -- i.e., no former TWA LLC employee working at or with recall rights to a station staffed by TWU represented AA employees – the DRC does not interpret the Award to grant 25% occupational seniority even if TWA operations exceeded the 10% threshold on April 9, 2001.

 

            However, in the event American opens a new station which had never been staffed by AA employees, and TWA operations at such location exceeded the 10% threshold on April 9, 2001, 25% seniority will be granted. Under this circumstance, granting former TWA LLC employees seniority would not impact American employees because there would be no employees with seniority at the station.

 

 

Dispute No. 7: To what extent is there a difference in how a former TWA LLC employee can exercise his seniority during the “initial implementation” and after the “initial implementation”? Either during the initial implementation or subsequently can a former TWA LLC employee exercise his seniority in a reduction in force if it adversely affects an American employee?

 

DRC Decision No. 7: All parties recognize and the DRC finds that the “initial implementation” of the Opinion and Award has been completed. DRC Decision No. 5 explains how occupational seniority will apply in a reduction in force.

 

 

Dispute No. 8: Whether a TWA LLC employee is prohibited from exercising the 25% seniority credit in LAX until all American employees (in the classification) are recalled, not only to LAX but to Burbank and Ontario, both of which American no longer staffs? The same issue exists at JFK which, like LAX, is a multi-airport location.

 

DRC Decision No. 8: This issue first arose at the New York stations, which include JFK, LaGuardia and Newark. Specifically, the question arose as to whether there are employees with recall rights to Islip, which is part of the New York single station agreement, but which is no longer serviced by American; and whether the existence of such employees should block the exercise of seniority rights in New York by former TWA LLC employees.

 

            American has no operations in Islip, and no plans to restore such operations.

 

            Under these circumstances, delaying the exercise of seniority by recalled former TWA LLC employees until essentially theoretical recall rights are exercised would simply deny such employees the rights they secured by virtue of the Seniority Integration Opinion and Award.  Such a result would have nothing to do with preventing adverse impact upon American employees, but would simply deprive former TWA LLC employees of credit for work and work opportunities contributed by TWA and would be contrary to the rationale of the Opinion and Award. Therefore, the existence of theoretical rights at Islip does not prevent the exercise of former TWA LLC employees' 25% seniority credit at the New York stations.

 

            The same rationale would apply at LAX where, for example, fleet service clerks laid off from Burbank and Ontario have all been recalled within the one station complex. Thus, for fleet service employees at LAX, the 25% seniority credit rule applies.

 

 

Dispute No. 9: Whether American is furloughing former TWA LLC employees and either simultaneously, or a few days thereafter, recalling American employees to the same position (e.g. full-time previously held by the now-furloughed TWA LLC employees)?

 

DRC Decision No. 9: The facts presented do not support the allegation by the IAM. The

DRC acknowledges that, if there were a situation where full-time former TWA LLC employees were laid off and soon thereafter an equivalent or significant full-time vacancies were declared without justification to determine the coincidental timing, it would be considered a "flush", which is prohibited by the Seniority Integration Opinion and Award.

 

            The DRC acknowledges that the TWU/AA collective bargaining agreements provide rights and options to furloughed employees based on occupational seniority, including the ability for an employee with sufficient seniority to displace from part-time to full-time, and vice versa. In certain circumstances, a displaced part-time employee can displace a less senior fulltime employee.

 

            Based on the facts presented, the DRC finds no breach or violation of the Seniority Integration Opinion and Award.

 

 

Dispute No. 10: In the case where American lays off former TWA LLC employees from their full-time positions and, at the same time part-time openings are made available, do these former TWA LLC employees have rights to hold the part-time positions over American employees who are currently furloughed?

 

DRC Decision No. 10: Since the former TWA LLC employees were not displaced from their full-time jobs or the jobs they held at the time of the Seniority Integration Opinion and Award by American employees, the application of the reduction in force and the processing of the awards was in accordance with TWU/AA collective bargaining agreement and in compliance with the “no flush" requirement of the Seniority Integration Opinion and Award.

 

 

Dispute No. 11: Once all American employees and former TWA LLC employees have exercised their recall rights to a particular station and a vacancy becomes available at that station, what amount of occupational seniority can a former TWA LLC employee use when bidding for that position?

 

DRC Decision No. 11: The DRC concludes that the location of the vacancy determines the seniority to be used for system competition for the vacancy. The amount of occupational seniority a former TWA LLC employee from outside a particular station can use in bidding a vacancy in that station is the amount of occupational seniority that a former TWA LLC employee can exercise within the station under the terms of the Seniority Integration Opinion and Award. The former TWA LLC employee bidding into St. Louis or Kansas City may exercise full occupational seniority. In other stations, those which exceed the 10% ASM cutoff, a former TWA LLC employee may exercise 25% of his seniority consistent with DRC Decision No. 6. Vacancies will be filled according to the TWU/AA Agreement.

 

 

Dispute No. 12: Whether American is replacing probationary employees with TWA LLC employees?

 

DRC Decision No. 12: Consistent with the no “system flush” provision of the Seniority Integration Opinion and Award, American was not obligated to displace probationary employees with furloughed TWA LLC employees. American did, in fact, release or furlough several of such employees, although the reliable representation of facts establishes that the number of such employees was very limited. The Seniority Integration Opinion and Award provided such employees with no greater protection than they had under the terms of the collective bargaining agreement.

 

 

Dispute No. 13: Have former TWA LLC employees been permitted to bump American employees who are on probation or were hired after March 1, 2001?

 

DRC Decision No. 13: Consistent with the no “system flush” provision of the Seniority Integration Opinion and Award, American was not obligated to displace probationary employees with furloughed TWA LLC employees. American did, in fact, release or furlough several of such employees, although the reliable representation of facts establishes that the number of such employees was very limited. The Seniority Integration Opinion and Award provided such employees with no greater protection than they had under the terms of the collective bargaining agreement.

 

 

Dispute No. 15: As a result of the number of jobs brought forward by the TWA LLC operation a certain number of former TWA LLC employees were not guaranteed jobs. As future vacancies become available, who should be awarded the positions?

 

Example #1. April - 10 - 01 CITY

 

                                                Status                          Seniority

 

TWA PART-TIME               4-10-01                         LAID OFF FULL-TIME

 

AA PART-TIME                   2-01-85                        TRANSFER ON FILE TO

                                                                                    FULL-TIME

 

Who would be awarded the next full-time position?

 

 

 

Example #2. 25% CITY

 

                                                Status                          Seniority

TWA PART-TIME               4-02-98                        LAID OFF FULL-TIME

 

AA PART-TIME                   2-01-00                        TRANSFER ON FILE TO

                                                                                    FULL-TIME

 

Who would be awarded the next full-time position?

 

 

DRC Decision No. 15: The Seniority Integration Opinion and Award only speaks to the narrow issue of the occupational seniority to be granted to incoming TWA LLC employees integrated into the American workforce represented by the TWU. In the American system, outside of St. Louis and Kansas City, the seniority date will be April 10, 2001 or 25% of former TWA LLC employees' occupational seniority. However, once their occupational seniority is set, such former TWA LLC employees are entitled to whatever rights such occupational seniority provides for them under the terms of the TWU/AA collective bargaining agreement.

 

 

            The questions and examples posed in Dispute No. 15 do not relate to the interpretation of the Seniority Integration Opinion and Award, but rather to the application of the TWU/AA collective bargaining agreement. The contract provides priority to positions for those exercising recall rights over those seeking transfers. The DRC does not have the authority to modify or change such provisions.

 

 

Dispute No. 16: In the language of the Seniority Integration Opinion and Award on the awarding to TWA employees 25% or 100% of their “acquired seniority”, how is “acquired seniority” defined?

 

 

DRC Decision No. 16: During the course of the arbitration proceeding, explanations regarding the manners in which occupational seniority was accrued and calculated under the IAM/TWA LLC agreement and the AA/TWU agreements were presented into the record evidence. Although the Arbitrator had a clear understanding of the differences on the establishment of occupational seniority under the two agreements, there was no request by the parties, during the initial proceeding, to render a remedy on a recalculation of occupational seniority for either the TWU/AA or IAM/TWA list. The task in the seniority integration proceeding was to decide upon the integration of the seniority lists for the respective groups of employees at TWA and at AA. The integration of the lists at AA and TWA was approached literally, and the Award took the seniority acquired at TWA, which is reflected on the TWA seniority list, and integrated it into the TWU/AA seniority list based on the applicable seniority credit of 25%, 100% or 4/10/01. Therefore, the meaning of “acquired seniority”, as written in the Award, was based upon the seniority as it was acquired under the IAM/TWA agreement as of the date of the Award.

 

 

 

            The above interpretations, clarifications and supplemental awards are being issued this 30th day of August, 2002.

 

 

 

 

By: Original signed Copy for word use only.

____________________________

Richard R. Kasher

Dispute Resolution Committee