TEMPE, Ariz. ( TheStreet) -- US Airways (LCC) moved Monday to end the festering five-year seniority dispute between its pilots, asking a federal court to enable it to negotiate a contract without fear that it will face either a strike or liability as a result.
The carrier filed in U.S. District Court in Phoenix, seeking a declaratory judgment regarding the seniority issue, unresolved since the 2005 merger. Last year, the same court ruled the U.S. Airline Pilots Association was not fairly representing all of its pilots because it had not implemented a controversial seniority ruling, the Nicolau award, which appears to favor pilots from the former America West airline.
In June, the U.S. Appeals Court in San Francisco
In a letter to pilots released Monday, Executive Vice President Steve Johnson wrote that the airline's filing "requests that the court clarify the company's legal rights and obligations with respect to the seniority dispute and new single contract."The key questions, Johnson wrote, are: "Must the company insist the Nicolau award be included in the new single agreement? May the company enter into a single agreement that does not include the Nic? If the company enters into a legal agreement that does not include the Nic, would it have legal liability to the west pilots?" In the lawsuit, the carrier reminds that it "has never taken any position on the merits of this seniority dispute; it has always been and still is neutral." But the airline wants the matter to be resolved so that it faces neither liability for not implementing the seniority ruling nor a job action if it does implement the seniority ruling. In its June ruling, the appeals court appeared to suggest that the Nicolau seniority ruling might never be implemented if USAPA can design a contract with alternative protection for west pilots.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV