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Pilots File Class Action Suit Against United Airlines

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Case ID: 4844 | Employment | 06/16/2006

A group of 15 United Airlines employees filed a federal lawsuit against the Air Line Pilots Association union for discriminating against nonunion pilots. According to the complaint, the ALPA union hierarchy illegally failed to inform nonunion employees of their right to sell future United stock shares issued during the airline's bankruptcy reorganization plan.

The workers filed the class-action lawsuit in Virginia for all nonmember United pilots. The number of plaintiffs should exceed 200.

The airline and ALPA union officials agreed that, prior to the issuance of the new United stock upon its emergence from bankruptcy, each pilot would have the option to sell their future right to receive the stock. Any pilot could exercise the option by authorizing ALPA union officials to sell his or her interest in the claim for the highest price achievable in the market.

As a result of the agreement, employees who participated in the auction profited from the new United stock at a substantially greater amount than what the shares could be sold for when subsequently distributed.

ALPA union officials informed only union members -- not nonmembers -- of this option to participate in the auction. Information regarding the option to sell future stock, and the forms required to participate in the auction, were secluded to a remote "members only" portion of the union's Web site accessible only with a password not given to nonmembers.

"The ALPA union hierarchy deliberately and unlawfully misled nonmembers in an attempt to retaliate against them for refusing formal union membership," said the vice president of the National Right to Work Foundation. "Union officials wanted to send a message to all employees that they had better toe the union line."

The United pilots' lawsuit seeks an order declaring that the ALPA union breached its duty of fair representation, as well as damages for each employee equal to the share difference between the auction sales price for the claims and the actual trade price of the stock at the time it was issued, plus interest.

The lawsuit is seeks to represent any non union employee that was not notified of their right to sell United stock shares.


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