Arbitrator Finds for ALPA in PAI Dispute

An arbitrator ruled that Pinnacle Airlines, Inc. (PAI) and Pinnacle Airlines Corp. (PNCL) violated the pilots' contractual rights when management refused to meet and discuss labor protection issues with them after PNCL bought Colgan Air in early 2007, according to a statement released by the Air Line Pilots Association (ALPA). For its part, Pinnacle Airlines Inc President Clive Seal indicated that the airline had already announced that it would do whatever the arbitrator calls for and that the law defines this as a minor contractual disagreement. Ultimately, any agreement that is reached, according to the airline, would be one that is not used since the Pinnacle Corp never intended to merge the PAI and Colgan Airways.
The arbitrator found that PNCL and PAI were alter egos functioning as a single employer at the time of the Colgan purchase. By claiming separate organizations, Pinnacle Airlines Corp. alleged it was not legally bound by the contract pilots signed with Pinnacle Airlines, Inc.
"Our pilots knew that Pinnacle management was playing games – we simply built the case," said Capt. John Prater, president of ALPA. "This victory shows the strength of a resourceful union – we put a lot of manpower behind this pilot group, and they came out of this arbitration with another win."
"This is a major victory for us," said Capt. Scott Erickson, chairman of the Pinnacle unit of ALPA. "We hope this ruling puts an end to managements' continued quest to deny us our contractual rights."
The arbitrator ruled that Pinnacle's "consistent failure to distinguish between the two corporate entities provides persuasive evidence that Pinnacle Airlines Corp. and Pinnacle Airlines, Inc. were alter egos functioning as a single employer at the time of the acquisition of Colgan by PNCL," and concluded, "... because PNCL and PAI were alter egos functioning as a single employer when PNCL acquired Colgan ..." the company violated the labor protection section of the collective bargaining agreement with the pilots.
Pinnacle pilots and management have been in protracted contract negotiations for more than three years. A mediator assigned by the National Mediation Board has been involved in the process since fall 2006. The Pinnacle pilots began collective bargaining with management under Section 6 of the Railway Labor Act in February 2005, and the agreement under which their pilots currently work became amendable in May 2005.