September 18, 2024
Dear AMFA-AS Members:
On September 17, 2024, the United States Department of Transportation issued an exemption order allowing Alaska Airlines and Hawaiian Airlines to operate under common ownership pending final review of the airlines’ transfer application that seeks DOT approval to combine and operate international routes under one certificate – authorization that is required to provide air transportation as a merged carrier.
The exemption allows Alaska and Hawaiian to consummate their merger on the condition that they remain separate and independently operated until the DOT has ruled on their transfer application.
Union representation is not determined by the DOT, but rather by the National Mediation Board (NMB or Board). The United States Supreme Court has held that the Board has exclusive jurisdiction over representation questions under the Railway Labor Act. Switchmen's Union v. National Mediation Board, 320 U.S. 297 (1943).
The first required step is for an organization or individual to request that the NMB make a finding that two separate carriers have now become a “single transportation system.” The NMB finds a single transportation system only when there is substantial integration of operations, financial control, and labor and personnel functions. Southwest Airlines/AirTran Airways, 43 NMB 120 (2016); Delta Air Lines/Northwest Airlines, 36 NMB 36 (2009); Burlington N. Santa Fe Ry. Co., 32 NMB 163 (2005).
Once a single transportation system is found, the NMB will proceed to investigate representation issues. Existing union certifications remain in full force and effect until the NMB issues a new certification or dismissal. NMB Representation Manual § 19.7.
Because AMFA represents a substantial majority of the Mechanics and Related Employees in the combined group, the AMFA certification would ordinarily be extended to cover Hawaiian employees. However, the IAM could trigger an election if sufficient Alaska AMTs sign authorization cards indicating their support for an inter-union election.
A merger is a particularly bad time for the issue of union representation to be in doubt. Under a federal law, referred to as the McCaskill-Bond Amendment, sections 3 and 13 of the labor protective provisions imposed by the Civil Aeronautics Board in the Allegheny-Mohawk merger (as published at 59 C.A.B. 45) apply to the seniority integration of employees at merging airlines. If the respective employee groups cannot agree on seniority integration, the matter must then be submitted to arbitration, where complex economic arguments concerning the two airlines’ respective pre-merger business prospects become the principal focus. AMFA’s officers, attorneys and economic consultants are experienced in these issues and will safeguard your interests.
Stay engaged, remain informed, and continue to support your local officers. And remember that rumors often spring from individuals with bad intentions.
Fraternally,
Bret Oestreich
National President