Date: June 18, 2014

TO: SWA Membership

FR: Bob Cramer, Matthew Townsend, Shane Flachman, Mike Young

RE: Appearance Technician – LOA 1 Arbitration Win

The Association prevailed on an important contract language issue recently brought to arbitration on behalf of AMFA-represented Appearance Technicians at Southwest Airlines.

Letter of Agreement No. 1, or LOA 1, is a key amendment to the Appearance Technicians’ contract that limits the ability of the Company to transfer work outside of the bargaining unit.

Last year the Company revealed an interpretation of LOA 1 that it claimed allowed it to transfer work outside the bargaining unit, beyond what the language allowed. Specifically, the Company claimed that "natural attrition" operated like a hole in a bucket to drain away bargaining unit work. That interpretation over "attrition" jeopardized the job security of Appearance Technicians who worked the Line.

The issue was brought forward in several grievances. AMFA then tried a direct approach with the Company but the issue could not be settled. So the Association directed its lawyers take the case to arbitration.

On June 16 of this year Arbitrator Luella Nelson issued a decision that agreed entirely with the Association’s position on the disputed issue. Arbitrator Nelson’s ruling is now effectively part of the contract. Her ruling will have impact going forward as she commanded the parties to implement her ruling and retained jurisdiction over any disputes about implementation.

Attorney Nick Granath, who tried the case, said about the ruling: "It is very clear and answers the issue the parties put forward so it now clears the way for the Associations’ representatives to sit down with the Company to ensure that LOA 1 is implemented as it should be."

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