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Federal Arbitrator Rules Alaska Airlines Violated Union Contract When It Outsourced 500 Union-Represented Baggage Handling Jobs to Menzies Aviation.

A federal arbitrator ruled that Alaska Airlines violated its collective bargaining agreement with IAM District 143 when it laid off 500 baggage handlers and other ramp workers in May 2005.

“This ruling is a huge victory for the IAM, Air Transport District 143, and all the hard-working airline employees we represent. The ruling sends a message to the airlines that they must respect their workers and their Union contracts,” said President Stephen Gordon. The ruling comes more than three years after Alaska Airlines subcontracted its entire ground handling operation to Menzies Aviation. IAM-represented ramp employees who showed up to work on May 13, 2005 had their security badges deactivated by Alaska and were told they no longer had jobs.

Since outsourcing the work to Menzies, Alaska Airlines has endured negative press reports involving lost and mishandled bags, flight delays, safety problems, and increased customer complaints.

The federal arbitrator who decided the case considered the parties’ contract language, which permitted Alaska Airlines to subcontract the ground handling work only if it was cheaper than keeping the work in-house.

The federal arbitrator directed Alaska Airlines and District 143 to work together to determine the appropriate remedy for the contract breach, but will take the matter up again if Alaska Airlines and District 143 are unable to agree on a solution.

“Only because of our strong Union and the opportunity of a grievance resolution process could we prevail in protecting jobs; without such a process, all is for nothing,” stated President Stephen Gordon.