Arbitrator Issues Ruling in Seattle Ramp Case
07 Agosto 2008 - 10:41PM
PR Newswire (US)
Company disputes contention that it overestimated cost savings
SEATTLE, Aug. 7 /PRNewswire/ -- An arbitrator has ruled that Alaska
Airlines violated its contract with the union that represented ramp
service agents in May 2005 when it outsourced ramp work in Seattle.
Alaska's contract with the International Association of Machinists
and Aerospace Workers (IAMAW) allows the company to outsource,
however, vendor charges must be less than what it would otherwise
cost the airline to perform the same work. Ramp services include
loading and unloading baggage, and guiding aircraft to and from
airport gates. The arbitrator ruled on one phase of the case today,
stating that the company violated its agreement with the IAMAW
because, in his opinion, the vendor charges were not less than the
company's costs to perform the work in-house. Alaska continues to
believe the cost of having an outside party perform the work was
significantly less than the cost it was incurring with its own
staff. In a second phase of the case, the arbitrator directed
Alaska Airlines and the union to attempt to reach a remedy. If they
are unable to do so, the case will go back to the arbitrator for
further proceedings. "We disagree with the arbitrator's ruling,"
said Herman Wacker, Alaska Airlines' managing director of labor and
employment law and associate general counsel. "At this point,
however, the company's focus is on working with the union to
determine if we can agree on a remedy. Depending on the outcome,
the company can appeal the ruling in federal court." Starting in
September 2003, Alaska Airlines and the IAMAW negotiated for some
20 months on a contract that would reflect a market-competitive
rate for the carrier's ramp service agents represented by the
union. In April 2005, the IAMAW rejected a company proposal that
would have retained the work in-house, and Menzies Aviation assumed
ramp work shortly after. The Alaska employees who were laid off
received a severance package that went beyond what the union
contract specified. The IAMAW filed a grievance over the layoffs in
June 2005. During more than 15 days of hearings between January and
August 2007, the parties testified before the arbitrator and
submitted final rebuttal briefs last December. DATASOURCE: Alaska
Airlines CONTACT: Caroline Boren of Alaska Airlines,
+1-206-392-5101 Web site: http://www.alaskaair.com/
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