Pilots' union fine sticks
CLEVELAND, March 1 -- On Monday, February 26, the U.S. Supreme Court declined to hear a case involving a $45.5 million fine levied aginst the Allied Pilots Association as a result of a sickout held against American Airlines.
In denying certiorari, the court rejected an appeal by the Allied Pilots Association, representing American's 10,500 pilots, and its president, Rich LaVoy, and vice president, Brian Mayhew, at the time of the sickout.
The award was assessed because the union was found to have ignored a federal judge's order to cease a February 1999 pilot sickout that was ruled illegal.
The 10-day sickout canceled nearly 6,700 flights, snarled American's flight schedule and cost the airline more than $225 million. Pilots launched the labor disruption to protest American's acquisition of smaller Reno Air, whose lower-paid pilots were seen by the union as a threat to job security.
The amount of the award was intended to reflect the cost to American between the judge's issuance of the order to cease the action and the actual end of the sickout.
A U.S. appeals court based in New Orleans upheld the award in September.
The union appealed to the Supreme Court, saying such a civil contempt case involving a complex injunction, disputed factual issues and a serious sanction should be decided in accordance with basic due process principles, and not through the expedited procedures of a summary nature.
But the justices sided with the airline, declining to review the case. American Airlines told the high court it suffered "huge financial losses" because of the sickout.
"We are disappointed, of course, but this decision was not unexpected," the union said in a statement on its website. "On a daily basis, your union continues to operate and is attending to matters that are vital to the entire membership."
With this judgment, other unions that operate under the Railway Labor Act maybe subject to contempt fines if disputes are found to minor grievances instead of major.
"This case sets a disturbing precedent for all labor organizations
under the Railway Labor Act," said BLE International President Edward
Dubroski. "If conservative courts begin levying large judgments against
unions and their officers, union activism may spiral downward. There are
few officers and unions who could afford such a costly judgment."
© 2001 Brotherhood of Locomotive Engineers