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December 30, 2004
Bargaining Unit Gets Another Shot at Its Union
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P>When your company goes bankrupt and another organization agrees to buy its assets and hire employees, in your position, you have to take whatever you get, right? Well, maybe not­if you paid union dues and you feel your union failed to protect you. That claim is at the heart of this case.

What happened. When Trans World Airlines (TWA) declared bankruptcy, American Airlines agreed to purchase its assets and hire former TWA pilots. TWA's pilots were represented by the Air Line Pilots Association (ALPA), while American's pilots belonged to the Allied Pilots Association (APA). American set a condition on hiring TWA's pilots, however­that they waive their seniority rights. They were to be "integrated" into American pilots' seniority list and not be allowed to arbitrate any disputes about their placement. ALPA resisted waiving the TWA pilots' rights, which were part of their union agreement. But TWA asked the bankruptcy judge to set aside the union agreement, so ALPA reluctantly accepted the waiver in exchange for American's promise to "use its reasonable best efforts" to integrate TWA pilots' seniority.

But things went from bad to worse. The sale to American closed in April 2001; ALPA and APA negotiated but couldn't agree; in November APA created seniority procedures­and TWA pilots went to the bottom of the list. A year later, APA became the union for both sets of pilots, and ALPA dropped out. That's when one former TWA pilot, Leroy Bensel, representing all the others, took both ALPA and APA to court for failing to represent them fairly. A federal district judge in New Jersey dismissed all his claims, in particular ruling that the unfair representation charge against ALPA was filed too late, past the 6-month deadline. The pilots appealed to the 3rd Circuit, which covers Delaware, New Jersey, and Pennsylvania.

What the court said. A majority of appellate judges felt that the 6-month deadline should not apply. The pilots needed more time after the waiver of their rights to assess their situation. They shouldn't have been expected to challenge the only union that had promised to negotiate on their behalf, judges said. They agreed with the lower court in dismissing all other charges, but sent the case back for the pilots to present more evidence against ALPA. Bensel v. Allied Pilots Association, U.S. Court of Appeals for the 3rd Circuit, No. 03-3176 (10/26/04).

Point to remember: The court said the 6-month limit was trumped by the "ray of hope" concept, which states that employees need not abandon or alienate protection while they still hope it will help them.


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