Repeet:
Repeet asked: If my union brothers vote this proposal down, and, if the judge grants punitive damages, then under what rule or precedent does the membership have to pony up cash out of their pockets to pay an administrative fine?
Chip answers: Repeet, a few years ago the AA pilots held an illegal sick out. AMR management obtained an emergency court order to prevent pilots from calling in sick. But, the pilots did not accept the order and continued to call in sick. AMR went back to court and APA, the pilots union, was found in contempt and were given a $48 million fine.
The issue before the CWA & IAM-M is that the company has filed a legal brief with the bankruptcy court for the Section 1113 hearing.
The Legal Brief states, the company will seek to abrogate the contract(s), have the court prevent a strike, and force the CWA to pay $2.4 million per month for six months ($14.4 million) and the IAM $5.1 million per month for six months ($30.6 million), for any union who does not ratify the restructuring agreements.
Therefore, if Judge Mitchell agrees with the company's motion, he can order damages to be paid to US Airways by the union(s). The problem for IAM & CWA members is that the union does not have an extra $30 million and $14 million, respectively, in the budget. Union income comes from its membership dues and the union is made up of its members. Ultimately, the members are responsible for the actions of its leaders and if there is a monetary shortfall, the union would have no option but to access its membership to pay any court ordered damages or negotiate a settlement with the company.
If a union member votes no and even quits the company, the member could still be assessed the penalty.
Chip