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.
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