The U.S. Court of Appeals for the Seventh Circuit has ruled that a Teamsters lawsuit against Republic Airways will need to be resolved in arbitration between the union and carrier.
The International Brotherhood of Teamsters filed a lawsuit against Republic Airways in June 2023 over a pilot contract released by Republic a month prior. The Teamsters said the contract illegally imposed non-compete clauses and fines on pilots who violate it.
“The lawsuit asserts the employment contracts are an attempt by the airlines to change pilots’ working conditions unilaterally, in violation of federal labor law under the Railway Labor Act,” the union said in a press release at the time.
One year later, Teamsters Local 357 – based in Carmel, Indiana – filed a second lawsuit against Republic Airways. In a Teamsters news release regarding the second lawsuit, the union said illegal non-compete clauses were included in the contract under “the false pretense that they were ‘bonus’ or ‘incentive’ agreements.’”
In a decision made by the Seventh Circuit on Jan. 31, 2025, Judges Michael Scudder, Amy St. Eve, and Thomas Kirsc’h concluded that the parties’ dispute was minor and would be resolved in arbitration instead of federal court.
“‘We are not resolving the merits’ of the Unions’ challenges,” the court stated in its decision. “The Unions can present their arguments to an adjustment board, which may ultimately decide that their position carries the day. Our task is only to determine whether the Carriers made nonfrivolous arguments that the CBAs [collective bargaining agreements] justify their individual employment agreements. They have. Accordingly, we find the parties’ dispute minor and therefore subject to arbitration.”
AirlineGeeks reached out to the International Brotherhood of Teamsters and Republic Airways for comment.
