A judge ruled on June 22, 2012 that the National Mediation board overstepped its authority and applied an incorrect standard when it authorized a union-representation among American Airlines employees.

American Airlines Customer Service Employees: Union Election

The election was to be held by American's employees that work in customer service. The election would have allowed them to decide whether or not to be represented by the Communications Workers of America (CWA).

In May of 2012, American Airlines filed suit against the National Mediation Board (NMB). The suit claimed that the NMB's workplace mediation efforts applied the wrong standard to the vote. The Board allowed that 35% of employees showing interest in the union was sufficient to hold a vote.

Judge's Ruling Dismisses NMB's Workplace Mediation Decision

American claimed that the standard in this case should be 50%. On June 22, U.S. District Judge Terry Means (Fort Worth, TX) agreed with American.

In a statement released the same day, the CWA stated it would appeal the decision. The union called the decision "a travesty of justice" and claimed that workers have been denied their voting rights.

Ruling Favors American's Financial Future

This ruling comes as American Airlines is trying to cut out $1.25 billion in labor costs every year. The airline company is seeking to do this as part of its bankruptcy re-organization plan. The addition of another union to deal with would have likely made these efforts more difficult.