On January 9, 2015, the PAB issued a decision holding that APA had the right to
appoint a West Pilots Merger Committee to represent the West Pilots’ interests in the
Substantive SLI Process. [See Doc. 1 filed in Bollmeier v. Hummel, 3:15-cv-00111-RJCDCK
(The LMRDA action) at Exhibit 4.]
In so ruling, the PAB said:
“The Board dismisses USAPA’s argument that it—as the pre-merger representative
of all US Airways pilots—has the full authority to represent all former US Airways
pilots and has the sole discretion to allow or not a West Pilots Merger Committee to
participate in the SLI process. This argument is unconvincing and runs contrary to
the NMB’s determination that APA is the representative of all Company pilots (both
US Airways and American Airlines).” Id. at 31.
“USAPA, the Board finds, has neither obligations nor responsibilities to any
bargaining unit members, including even the East Pilot seniority list grouping.
What is clear, though, is that USAPA does not represent the West Pilot seniority list
grouping and does not have a duty of fair representation to that group of employees.”
Id. at 32.
“Given the history of intransigence and hostility between USAPA and the West
Pilots, it is far from clear that USAPA could or would adequately represent the
interests of the West pilots. The fact that USAPA's very constitution contains a
provision stating that only date of hire principles is acceptable in any SLI process is
simply one of several considerations supporting this conclusion.” Id. at 33.
The PAB further directed APA to designate the West Pilots Merger Committee as a
full participant in the Substantive SLI Process.
23. On January 9, 2015, Mr. Velez’s counsel wrote to USAPA’s counsel and noted that,
given the fact that USAP no longer represented the West Pilots, it should provide an
immediate accounting of the specially assessed Merger Fund, including the percentage
attributable to West Pilots, and cease spending any USAPA funds on seniority proceedings,
including any legal proceedings. [Doc. 46-5, at Exhibit E.]
24. On January 12, 2015, counsel for USAPA responded, stating USAPA would refuse
all of Mr. Velez and other West Pilots’ requests, and that it would continue to act at the
discretion of the Third Party Defendant Officers and the BPR. (See January 12, 2015 letter
from Brian O’Dwyer, attached hereto as Exhibit C.)
25. On January 12, 2015, APA appointed a separate Merger Committee to represent the
interests of the West Pilots in the Substantive SLI Process.
26. Upon information and belief, throughout the times discussed herein, and especially
after the PAB decision in January of 2015, numerous US Airways pilots, both East and
West, wrote to Counterclaim Defendant USAPA and its Third Party Defendant Officers,
requesting that USAPA immediately dissolve and distribute excess treasury funds to its
members in accordance with its Constitution and Bylaws
27. In furtherance of the Protocol Agreement, in January of 2015 APA created a
procedure whereby all three merger committees could submit to APA for reimbursement
for their share of a $4 million fund to pay for SLI expenses. Through this process USAPA
was entitled to seek reimbursement up to $1.3 million for SLI-related expenses, making
this $1.3 million an important asset belonging to USAPA for the benefit of its membership.
To this date, Counterclaim and Third Party Defendants have failed and refused to seek to
bring this asset into the USAPA treasury
28. Counterclaim and Third Party Defendants continued to defer dissolution and
continued to expend USAPA resources to participate in the SLI process, including retaining
and paying for experts, paying flight pay loss for USAPA Merger Committee members,
paying for attorneys and consultants, and submitting briefs to the SLI Arbitration Board.
29. On June 26, 2015, the Ninth Circuit Court of Appeals issued an opinion in
Addington v. USAPA, Nos. 14-15757, 15874, 15892. [Doc. 54.] The Ninth Circuit
concluded that USAPA had violated its duty of fair representation to West Pilots when it
was a certified union by organizing and operating for the sole benefit of East Pilots to the
detriment of West Pilots: “USAPA has served as the stalking horse for the East Pilots’
exclusive interests and left the West Pilots bereft of representation. USAPA’s manifest
disregard for the interests of the West Pilots and its discriminatory conduct towards them
constitutes a clear breach of duty.” [Id. at pages 55-56.] The Ninth Circuit remanded to
the Arizona District Court for an injunction against USAPA to prevent it from participating
the SLI process unless it agreed to propose the Nicolau Award.
30. Because USAPA breached its duty of fair representation to the West Pilots by failing
and refusing to represent them in seniority proceedings, none of the seniority proceedings
in which USAPA has participated and for which it has expended treasury funds have
qualified as “collective legal action on behalf of the pilot group.”