Airline Industry Files Suit to Overturn NMB Rule Change

On May 17, 2010, the Air Transport Association of America (ATA) filed a lawsuit in federal court seeking to prevent the National Mediation Board (NMB) from implementing a change to its 75-year-old election process that would make it easier for unions to organize airline and railroad employees. In the lawsuit, the ATA claims that NMB’s Final Rule should be set aside because it contravenes the clear and unambiguous language of the Railway Labor Act. The association also argues the NMB’s conduct was “arbitrary, capricious [or] an abuse of discretion” in that the NMB, among other actions, departed from its long-standing rule without legitimate justification, predetermined its course without regard to concerns raised by the industry, and selectively borrowed only pro-union provisions from the labor statute that applies to non-rail and non-airline employees.

Through the suit, the ATA seeks a declaratory judgment striking down the law and an injunction preventing the NMB from implementing the Final Rule, which is scheduled to take effect on June 10, 2010. While the ATA is the principal association representing scheduled airlines in the United States, its members were split on filing the lawsuit. American Airlines, Continental Airlines, Southwest Airlines, UPS Airlines, United Airlines and US Airways refrained from joining the suit.

For additional background on this major development and Littler Mendelson’s active opposition to the NMB majority’s action, please see the Final Rule, (pdf) Littler’s formal comments submitted on November 20, 2009 and January 4, 2010, (pdf) and our various blog updates (May 10, 12; Dec. 8; Nov. 3, 4) on the subject.   Also, on Tuesday, May 25, Littler Mendelson will hold a complimentary webinar on the short and long term implications of the NMB’s issuance of its Final Rule.

This entry was written by LIttler's Transportation Industry Practice Group.

Photo credit:  evirgen

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.