Teamsters Hail Court Decision on Frontier Airlines

U.S. District Court Strikes Ruling Voiding Collective Bargaining Agreements

WASHINGTON, July 21 /PRNewswire-USNewswire/ — The Teamsters applauded a decision by the U.S. District Court for the Southern District of New York that strikes down a bankruptcy court ruling that erroneously voided Denver-based Frontier Airlines’ collective bargaining agreements with the union.

Yesterday’s decision also sends the case back to the U.S. Bankruptcy Court for further review.

“This is a resounding victory,” said Teamsters General President Jim Hoffa. “The U.S. District Court recognized that company rushed to the courthouse without bargaining in good faith with the Teamsters.”

According to the decision, the bankruptcy court applied improper standards by considering proposals and supporting disclosures after the hearing had begun to consider Frontier Airlines’ proposal to reject the collective bargaining agreements. The bankruptcy court’s decision allowed Frontier Airlines to implement a 14 percent cut in wages.

“We are extremely pleased with the decision,” said Capt. David Bourne, Director of the Teamsters Airline Division. “Companies should not run to court in hopes a judge will do the negotiating for them.”

The Teamsters Union has refused to agree to Frontier’s demand that it have the unlimited right to permanently outsource its heavy-check maintenance. Frontier then sought to reject the Teamster contracts.

“We will never agree to the outsourcing of work to foreign countries,” said Matthew Fazakas, President of Local 961 in Denver.

The Teamsters Union represents about 325 mechanics at Frontier Airlines that are covered under the collective bargaining agreements affected by the decision. The International Brotherhood of Teamsters was founded in 1903 and represents more than 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico.

SOURCE International Brotherhood of Teamsters