Professional Airline Flight Control Association v. Spirit Airlines, Inc. ( 2023 )


Menu:
  • USCA11 Case: 22-11341    Document: 26-1      Date Filed: 03/08/2023    Page: 1 of 15
    [PUBLISH]
    In the
    United States Court of Appeals
    For the Eleventh Circuit
    ____________________
    No. 22-11341
    ____________________
    PROFESSIONAL AIRLINE FLIGHT CONTROL ASSOCIATION,
    Plaintiff-Appellant,
    versus
    SPIRIT AIRLINES, INC.,
    Defendant-Appellee.
    ____________________
    Appeal from the United States District Court
    for the Southern District of Florida
    D.C. Docket No. 0:21-cv-60396-RKA
    ____________________
    USCA11 Case: 22-11341       Document: 26-1       Date Filed: 03/08/2023      Page: 2 of 15
    2                       Opinion of the Court                   22-11341
    Before WILLIAM PRYOR, Chief Judge, MARCUS, Circuit Judge, and
    MIZELLE,∗ District Judge.
    WILLIAM PRYOR, Chief Judge:
    This appeal requires us to decide whether the district court
    had subject-matter jurisdiction over a labor dispute between Spirit
    Airlines and the union that represents Spirit’s flight dispatch offic-
    ers. The Railway Labor Act, 
    45 U.S.C. § 151
     et seq., divides labor
    disputes into two categories: disputes over the interpretation of an
    existing agreement are “minor” and resolved exclusively through
    binding arbitration, and disputes over proposed changes to an
    agreement or over a new agreement are “major” and addressed
    through bargaining and mediation. During a major dispute, district
    courts have subject-matter jurisdiction to enjoin violations of the
    status quo. But district courts ordinarily lack jurisdiction over mi-
    nor disputes. The Professional Airline Flight Control Association
    complained that Spirit is attempting to change their agreement.
    Spirit responded that its unilateral decision to open a second oper-
    ations control center is permitted by the parties’ agreement. The
    district court agreed with Spirit that this dispute is minor and dis-
    missed the action for lack of subject-matter jurisdiction. We affirm.
    ∗ Honorable Kathryn Kimball Mizelle, United States District Judge for the
    Middle District of Florida, sitting by designation.
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023     Page: 3 of 15
    22-11341               Opinion of the Court                         3
    I. BACKGROUND
    The Professional Airline Flight Control Association serves as
    the exclusive bargaining representative of the approximately 75
    flight dispatch officers employed by Spirit Airlines, Inc. Flight dis-
    patch officers manage “major flight decisions” such as flight paths,
    fuel loads, and whether to dispatch flights. Spirit and the union en-
    tered into a collective bargaining agreement in 2018 that is effective
    through October 2023. Neither side can amend the agreement ear-
    lier than 150 days before October 15, 2023.
    The dispatch officers work at an operations control center in
    Miramar, Florida, where Spirit is headquartered. In February 2020,
    Spirit informed the union that because of the threat of hurricanes
    in Miramar, it intended to move the operations control center to
    Nashville, Tennessee. Under section 6.D of the collective bargain-
    ing agreement, the parties began negotiating about moving ex-
    penses.
    In September, Spirit informed the union that instead of mov-
    ing the control center to Nashville, it had decided to keep the
    Miramar control center and open a second control center in Or-
    lando, Florida. The parties recommenced bargaining, now regard-
    ing a wider set of issues, “such as bidding to work in one center or
    the other, cross-center seniority rights, and cross-center shift trad-
    ing.” In January 2021, the parties had not reached an agreement,
    and Spirit informed the union that it would not engage in further
    negotiations. About a week later, Spirit publicly announced its in-
    tention to open the second control center in Orlando and to either
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023      Page: 4 of 15
    4                       Opinion of the Court                 22-11341
    transfer some employees there from Miramar or hire new employ-
    ees. Neither party has made a formal proposal to amend the exist-
    ing agreement.
    In February 2021, the union filed suit in the district court. It
    alleged that Spirit’s decision to open a second control center was
    an attempt to change the parties’ agreement about conditions of
    employment, so the dispute was major. And it argued that Spirit
    was required by the Railway Labor Act to negotiate over the sec-
    ond control center and to maintain the status quo in the meantime.
    The union sought injunctive relief.
    Spirit moved to dismiss the complaint. It argued that the col-
    lective bargaining agreement permits it to unilaterally decide to
    open a second control center. It argued that the dispute concerned
    the interpretation of the existing agreement, not a proposed change
    to the agreement, which made the labor dispute a minor one over
    which the district court lacked subject-matter jurisdiction. The dis-
    trict court ruled that the labor dispute was minor and dismissed the
    complaint for lack of subject-matter jurisdiction.
    II. STANDARD OF REVIEW
    We review issues of both subject-matter jurisdiction and the
    classification of a dispute as major or minor under the Railway La-
    bor Act de novo. See Calderon v. Baker Concrete Constr., Inc., 
    771 F.3d 807
    , 810 (11th Cir. 2014); CSX Transp., Inc. v. Bhd. of Maint.
    of Way Emps., 
    327 F.3d 1309
    , 1320 (11th Cir. 2003).
    USCA11 Case: 22-11341       Document: 26-1      Date Filed: 03/08/2023      Page: 5 of 15
    22-11341                Opinion of the Court                           5
    III. DISCUSSION
    The Railway Labor Act, 
    45 U.S.C. § 151
     et seq., was enacted
    in 1926 “to encourage collective bargaining by railroads and their
    employees in order to prevent, if possible, wasteful strikes and in-
    terruptions of interstate commerce,” Detroit & Toledo Shore Line
    R.R. Co. v. United Transp. Union (Shore Line), 
    396 U.S. 142
    , 148
    (1969); see 45 U.S.C. § 151a. Congress later amended the Act to
    govern the airline industry. See 
    45 U.S.C. §§ 181
    –88. The Act pro-
    vides the procedures that carriers and their employees must follow
    to resolve labor disputes.
    There are two types of disputes under the Act, and each trig-
    gers different procedural requirements. See Consol. Rail Corp. v.
    Ry. Labor Execs.’ Ass’n (Conrail), 
    491 U.S. 299
    , 302–04 (1989). Mi-
    nor disputes are those that concern “a collective agreement already
    concluded or . . . a situation in which no effort is made to bring
    about a formal change in terms or to create a new one. The dispute
    relates either to the meaning or proper application of a particular
    provision . . . .” 
    Id. at 303
     (quoting Elgin, Joliet & E. Ry. Co. v. Bur-
    ley, 
    325 U.S. 711
    , 723 (1945)); see 
    45 U.S.C. § 152
     Sixth (discussing
    disputes “arising out of grievances or out of the interpretation or
    application of agreements concerning rates of pay, rules, or work-
    ing conditions”). Major disputes are about “the formation of collec-
    tive agreements or efforts to secure them. They arise where there
    is no such agreement or where it is sought to change the terms of
    one, and therefore the issue is not whether an existing agreement
    controls the controversy.” Conrail, 
    491 U.S. at 302
     (quoting Burley,
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023     Page: 6 of 15
    6                      Opinion of the Court                 22-11341
    
    325 U.S. at 723
    ); see 
    45 U.S.C. § 152
     Seventh (discussing changes to
    employees’ “rates of pay, rules, or working conditions . . . as em-
    bodied in agreements”). In short, “major disputes seek to create
    contractual rights, [and] minor disputes to enforce them.” Conrail,
    
    491 U.S. at 302
    .
    A minor dispute that the parties cannot resolve is subject to
    compulsory arbitration before an adjustment board created by the
    airline and its employees. See 
    id.
     at 303–04; Whitaker v. Am. Air-
    lines, 
    285 F.3d 940
    , 943–44 (11th Cir. 2002) (explaining the differ-
    ences between the adjustment boards for railroads and those for
    airlines); 
    45 U.S.C. § 184
    . The adjustment board has exclusive juris-
    diction over a minor dispute. Conrail, 
    491 U.S. at 304
    ; see also Pyles
    v. United Air Lines, Inc., 
    79 F.3d 1046
    , 1050 (11th Cir. 1996) (“Con-
    gress intended that these ‘minor disputes’ be resolved through the
    grievance procedures of the [Railway Labor Act] rather than in fed-
    eral court.”). Employees may not strike over a minor dispute, and
    the parties are ordinarily not required to maintain the status quo
    during arbitration. CSX, 327 F.3d at 1320. There is a limited excep-
    tion: district courts may issue a status-quo injunction if needed to
    preserve the adjustment board’s jurisdiction “by preventing injury
    so irreparable that a decision of the Board in the unions’ favor
    would be but an empty victory.” Bhd. of Locomotive Eng’rs v.
    Mo.-Kan.-Tex. R.R. Co., 
    363 U.S. 528
    , 534 (1960). But the Supreme
    Court has “never recognized” a general right to a status-quo injunc-
    tion over a minor dispute where the employer does not also seek a
    strike injunction. Conrail, 
    491 U.S. at 304
    . In any event, that
    USCA11 Case: 22-11341       Document: 26-1      Date Filed: 03/08/2023      Page: 7 of 15
    22-11341                Opinion of the Court                          7
    “extremely narrow” ground for an injunction, Int’l Bhd. of Team-
    sters Local 19 v. Sw. Airlines Co., 
    875 F.2d 1129
    , 1136 (5th Cir.
    1989), is not relevant to this appeal because the union does not ar-
    gue that it is entitled to injunctive relief if the dispute is minor.
    By contrast, when either party seeks to change “agreements
    affecting rates of pay, rules, or working conditions,” section 6 of
    the Act requires the party that seeks the change to give 30 days’
    written notice to the other party. 
    45 U.S.C. § 156
    . The parties then
    bargain over the proposed change, and either side can request the
    services of a mediation board. 
    Id.
     These major-dispute procedures
    are “purposely long and drawn out,” and the parties must “refrain
    from altering the status quo . . . while the Act’s remedies [a]re be-
    ing exhausted.” Shore Line, 
    396 U.S. at
    148–49 (citation omitted);
    see 
    45 U.S.C. § 156
    . And in these cases, federal courts may enjoin a
    violation of the status quo “without the customary showing of ir-
    reparable injury.” Conrail, 
    491 U.S. at 303
    .
    When a dispute under the Act “reaches a federal court, [the
    court’s] central responsibility is that of taxonomist—classifying the
    dispute as major or minor.” BLET GCA UP, Cent. Region v. Union
    Pac. R.R. Co., 
    988 F.3d 409
    , 413 (7th Cir. 2021) (internal quotation
    marks and citation omitted). “[A] union will typically claim a dis-
    pute is major because it is permissible to strike if the carrier insists
    on implementing a certain policy. Conversely, a carrier will insist
    the dispute is minor because it can proceed with the policy while
    the parties” arbitrate. CSX, 327 F.3d at 1320. If either side has filed
    a section 6 notice proposing to amend an existing agreement or to
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023     Page: 8 of 15
    8                      Opinion of the Court                 22-11341
    establish a new agreement, classification is easy: the dispute is ma-
    jor. But when neither side has filed a section 6 notice, the issue re-
    quires more analysis.
    The distinction “between major and minor disputes does
    not turn on a case-by-case determination of the importance of the
    issue presented or the likelihood that it would prompt the exercise
    of economic self-help.” Conrail, 
    491 U.S. at 305
    . Instead, the ques-
    tion is “whether a claim has been made that the terms of an existing
    agreement either establish or refute the presence of a right to take
    the disputed action.” 
    Id.
     “Where an employer asserts a contractual
    right to take the contested action, the ensuing dispute is minor if
    the action is arguably justified by the terms of the parties’ collec-
    tive-bargaining agreement. Where, in contrast, the employer’s
    claims are frivolous or obviously insubstantial, the dispute is ma-
    jor.” 
    Id. at 307
    . A party that argues that a dispute is minor—typi-
    cally the carrier—has only a “light” burden of proof. 
    Id. at 307
     (ci-
    tation omitted). And “if a reasonable doubt exists as to whether the
    dispute is major or minor, [the courts] will deem it to be minor.”
    CSX, 327 F.3d at 1321 (citation omitted).
    This dispute is minor. Spirit’s unilateral decision to open a
    second control center is arguably justified by the terms of the exist-
    ing collective bargaining agreement. Even if its contractual-inter-
    pretation arguments eventually fail on the merits, its arguments are
    not “frivolous or obviously insubstantial.” See Conrail, 
    491 U.S. at 307
    .
    USCA11 Case: 22-11341       Document: 26-1       Date Filed: 03/08/2023      Page: 9 of 15
    22-11341                 Opinion of the Court                           9
    The collective bargaining agreement includes a manage-
    ment-rights provision that states that “[e]xcept as restricted by an
    express provision of this Agreement, the Company shall retain all
    rights to manage and operate its business and workforce, including
    but not limited to the right . . . to transfer operations or part of op-
    erations.” The union stresses that Spirit has never before operated
    two control centers. But the right to transfer “part” of operations
    plausibly includes the right to have two control centers. Although
    the union argues that the rights “retain[ed]” by the management-
    rights clause must originate in the Act or in caselaw, Spirit’s argu-
    ment that it retained the rights it had prior to the dispatch officers’
    unionization is not obviously unfounded, so the parties’ disagree-
    ment about the scope of the management-rights clause does not
    make this a major dispute. It follows from the management-rights
    provision that if Spirit has a not-insubstantial argument that there
    is no express provision that restricts its right to transfer operations
    in part, its actions are arguably justified under the agreement. Spirit
    has satisfied its burden.
    To answer whether there is any express restriction on
    Spirit’s right to transfer operations, both parties focus on section 6
    of the agreement. That section states that “[w]here the Company
    opts to relocate the dispatch office to a new domicile more than
    fifty . . . miles from its current location, the parties will meet to dis-
    cuss and agree upon moving expenses for affected employees.”
    The union contends that the relocation-expenses provision does
    not apply here because Spirit is not moving “the” dispatch office.
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023      Page: 10 of 15
    10                      Opinion of the Court                  22-11341
    Spirit, for its part, argues that the use of “opts” in the provision im-
    plies that it can decide unilaterally whether to relocate its opera-
    tions and that the requirement that the parties bargain over mov-
    ing expenses for “affected” employees implies that some employ-
    ees may be “unaffected”—as would be the case if operations were
    relocated only in part.
    Because the management-rights provision reserves the right
    to transfer operations, in whole or in part, absent an express re-
    striction on that right, it does not matter for purposes of this appeal
    whether section 6 of the agreement itself recognizes a right to
    transfer. That section 6 does not clearly restrict Spirit’s asserted
    right to open a second control center is enough for Spirit’s position
    to be arguably justified by the agreement. The union does not iden-
    tify any other provision that expressly restricts the right to transfer
    operations.
    Spirit reasonably contends that the parties “already bar-
    gained over and reached agreement on Spirit’s right to make uni-
    lateral changes, including the right to transfer part of its opera-
    tions.” The Supreme Court has explained that employers and un-
    ions may bargain for terms “that grant management the power to
    respond flexibly to changing circumstances.” Conrail, 
    491 U.S. at 309
    . Employers are not required “rigidly to maintain the status quo
    pending arbitration of their right to be flexible.” 
    Id.
     Regardless of
    which party’s interpretation of the management-rights provision
    ultimately prevails, the only question for this Court is whether
    USCA11 Case: 22-11341     Document: 26-1      Date Filed: 03/08/2023    Page: 11 of 15
    22-11341               Opinion of the Court                       11
    Spirit’s position is “frivolous or obviously insubstantial.” See Con-
    rail, 
    491 U.S. at 307
    . It is not.
    The union next argues that the management-rights provi-
    sion cannot reserve to Spirit the unilateral right to transfer opera-
    tions. It contends that the Supreme Court has “explicitly ruled that
    carriers do not hold a retained right . . . to change employee[s’]
    work assignments in the absence of an explicit or implied contract
    provision prohibiting [them] from doing so.” This argument fails.
    We agree with the district court that the union misreads the
    precedents it cites. Those precedents concern the scope of the sta-
    tus-quo requirement during a major dispute, not the threshold ju-
    risdictional question whether a dispute is major or minor. They
    have no bearing on our inquiry.
    The union first points to Shore Line, in which the Supreme
    Court held that the Act required a railroad to refrain from estab-
    lishing new work assignments while the parties exhausted the sec-
    tion 6 procedures. 
    396 U.S. at
    152–53. The Supreme Court held that
    the status-quo provisions of the Act applied “regardless of the fact
    that the railroad was not precluded from making these assignments
    under the existing agreement.” 
    Id. at 154
    . In this appeal, the union
    points to that holding to argue that the decision “clearly excludes
    the existence of ‘retained rights.’”
    The problem for the union is that in Shore Line the Supreme
    Court explained that the question before it was “the extent to
    which the [Act] imposes an obligation upon the parties . . . to
    USCA11 Case: 22-11341      Document: 26-1      Date Filed: 03/08/2023      Page: 12 of 15
    12                      Opinion of the Court                  22-11341
    maintain the status quo while the purposely long and drawn out
    procedures of the Act are exhausted.” 
    Id. at 143
     (internal quotation
    marks and citations omitted). Everyone agreed that the dispute was
    major and section 6 applied; the only issue was the scope of the
    status-quo requirement. See 
    id.
     at 152–53. The Court answered
    that when the Act’s status-quo requirements are “properly in-
    voked,” both parties must maintain “actual, objective working con-
    ditions and practices,” not only those working conditions expressly
    provided for by agreement. 
    Id. at 153
    . Shore Line is unlike this ap-
    peal, in which we must first decide whether the status-quo require-
    ment has been properly invoked.
    The union next relies on Order of Railroad Telegraphers v.
    Chicago & North Western Railway Co., 
    362 U.S. 330
     (1960). There,
    the railroad sought to close some of its stations. In response, the
    union notified the railroad, pursuant to section 6 of the Act, that it
    wanted to negotiate to amend the collective bargaining agreement
    so that the railroad could not abolish any jobs without the union’s
    consent. 
    Id. at 332
    . The railroad argued that it had a managerial
    prerogative to close the stations and that the union’s request to
    amend the agreement did not raise a bargainable issue under the
    Act. 
    Id. at 332, 336
    . The Supreme Court rejected that argument.
    
    Id. at 336
    .
    Importantly, the Supreme Court did not hold that no mana-
    gerial prerogatives exist; it held that the union’s request in that case
    was not “an attempt to usurp legitimate managerial prerogative,”
    
    id. at 336
    , but instead was an attempt to settle a labor dispute
    USCA11 Case: 22-11341      Document: 26-1       Date Filed: 03/08/2023      Page: 13 of 15
    22-11341                Opinion of the Court                          13
    consistent with the requirements of the Act, 
    id. at 339
    . And because
    the union was trying “to change the ‘terms’ of an existing collective
    bargaining agreement,” that labor dispute was major. 
    Id. at 336
    ; see
    also 
    id. at 341
    . Here, by contrast, Spirit has never contended that
    the dispute is not covered by the Act, and neither party has given a
    section 6 notice.
    Finally, the union argues that a later precedent, Pittsburgh
    & Lake Erie Railroad Co. v. Railway Labor Executives’ Associa-
    tion, 
    491 U.S. 490
     (1989), “instructs that the holding in Shore Line
    is not limited only to the breadth of the status quo requirement in
    disputes where [s]ection 6 has been invoked,” “erod[ing]” any dis-
    tinction between Shore Line and this appeal. The union contends
    that “[i]t is of no significance that [s]ection 6 notices had been
    served in Shore Line, but not here.” But the union misreads the
    footnote on which it relies.
    Pittsburgh & Lake Erie explained the reasoning in Shore
    Line: when a union files a section 6 notice, the status-quo provision
    applies to all conditions objectively in existence at the time of filing,
    even if those conditions “otherwise could be changed without vio-
    lating any agreement.” Pittsburgh & Lake Erie, 
    491 U.S. at 506
    . And
    it “extended the relevant language of [section] 156 to its outer lim-
    its.” 
    Id.
     In the footnote on which the union relies, the Court rea-
    soned that because section 6 of the Act deals with “intended
    changes in agreements,” one arguable interpretation is that it
    “would not require the status quo with respect to working condi-
    tions that have never been the subject of an agreement . . . and that,
    USCA11 Case: 22-11341     Document: 26-1     Date Filed: 03/08/2023    Page: 14 of 15
    14                     Opinion of the Court               22-11341
    if no notice of changes had been served by the union, could be
    changed by the carrier without any bargaining whatsoever.” 
    Id.
     at
    506 n.15. “Shore Line rejected that construction.” 
    Id.
    The union reads this footnote to mean that “changes in
    work conditions not addressed in the agreement” are also “within
    the scope of the bargaining and status quo requirements,” even
    when no party has filed a section 6 notice. That reading is plainly
    incorrect. Shore Line, as explained in Pittsburgh & Lake Erie, con-
    cerned the scope of the status-quo provision in a major dispute, not
    the classification of a dispute as major or minor.
    Pittsburgh & Lake Erie explained that the status-quo provi-
    sion applies whenever the bargaining requirement applies, even
    when the carrier’s action, considered alone, would not trigger the
    bargaining requirement. But there still must be some “intended
    change in agreements affecting rates of pay, rules, or working con-
    ditions” for a labor dispute to trigger the bargaining requirement
    in the first place—such as a section 6 notice from the union. 
    45 U.S.C. § 156
     (emphasis added). Pittsburgh & Lake Erie explained
    that Shore Line extended the status-quo provision to “conditions
    ‘objectively’ in existence when the union’s notice was served . . .
    that otherwise could be changed without violating any agree-
    ment.” Pittsburgh & Lake Erie, 
    491 U.S. at 506
     (emphasis added).
    This appeal presents the “otherwise” scenario Pittsburgh &
    Lake Erie envisioned. The union has not filed a section 6 notice of
    a proposed change to the agreement, and Spirit has reasonably ar-
    gued that its action does not violate the agreement. The bargaining
    USCA11 Case: 22-11341    Document: 26-1    Date Filed: 03/08/2023   Page: 15 of 15
    22-11341             Opinion of the Court                    15
    requirement was not triggered. Shore Line’s holding on the scope
    of the status-quo provision during bargaining is inapplicable.
    IV. CONCLUSION
    We AFFIRM the judgment dismissing the action for lack of
    subject-matter jurisdiction.