By Rob Stapleton
Alaska Journal of Commerce

A federal arbitrator ruled Aug. 7 that Alaska Airlines violated its collective bargaining agreement with the International Association of Machinists and Aerospace Workers District 143 when it laid off 500 baggage handlers and other ramp workers at its base at the SeaTac airport in Seattle 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 Stephen Gordon, president of IAMAW.

The ruling comes more than three years after Alaska Airlines subcontracted its entire ground handling operation to Menzies Aviation.

Alaska Air's contract with the union allows the company to outsource, however, vendor charges must be less than what it would otherwise cost the airline to perform the same work, according to Alaska Airlines.

Ramp services include loading and unloading baggage, and guiding aircraft to and from airport gates.

“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.”

Union-represented ramp employees showed up to work May 13, 2005, and quickly had their security badges deactivated by Alaska and were told they no longer had jobs.

According to Alaska Airlines in September 2003, the airline and the union 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 union rejected a company proposal that would have retained the work in-house. 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.

In a second phase of the case, the arbitrator directed Alaska Airlines and union officials to attempt to reach a remedy. If they are unable to do so, the case will go back to the arbitrator for further proceedings.

Rob Stapleton can be reached at rob.stapleton@alaskajournal.com">rob.stapleton@alaskajournal.com.