Bondurant v. Air Line Pilots Ass’n, Int’l

In Chapter 11 bankruptcy, the airline extracted concessions that resulted in an approximate 40 percent wage cut for pilots in return for an $888 million claim in bankruptcy to be disbursed as stock shares. The union first suggested that a pilot's share should reflect time that the pilot worked during the 85-month concessionary period, but ultimately adopted a cutoff date for determining which pilots would receive full shares. The cutoff assumed that any pilot employed on the effective date of the Restructuring Agreement would remain employed through its termination four years later. Any pilot who left before the date would receive a share based the number of months that the pilot worked during the concessionary period. All participants in the Early Retirement Program retired after the cutoff date. Plaintiffs, retirees who reached mandatory retirement age and left before the cutoff, received shares at least $100,000 less than expected. The union rejected appeals. The district court granted summary judgment to the union. The Sixth Circuit affirmed, rejecting claims that the union breached its duty of fair representation, Railway Labor Act, 45 U.S.C. 15, and discriminated based on age, Age Discrimination in Employment Act, 29 U.S.C. 623(c)(1), and Mich. Comp. Laws 37.2204(a). View "Bondurant v. Air Line Pilots Ass'n, Int'l" on Justia Law