In the Matter of the

Application of the

Independent Association of Continental Pilots

alleging a representation dispute pursuant to Section 2, Ninth, of the Railway Labor Act, as amended

involving employees of

Continental Airlines, Inc./Continental Express, Inc.

26 NMB No. 29

CASE NO. R-6652

(FILE NO. CR-6633)

FINDINGS UPON

INVESTIGATION-

DISMISSAL

January 25, 1999

On April 10, 1998, the Independent Association of Continental Pilots (IACP) filed an application with the National Mediation Board (Board) pursuant to Section 2, Ninth, alleging the existence of a representation dispute involving "Instructor Pilots as an accretion to the Pilots craft or class" at Continental Airlines, Inc./Continental Express, Inc. (Carrier). IACP was certified as the representative of Continental's "Airline Pilots" (Pilots) in R-6193 in 1993. "Instructor Pilots" includes the positions of Flight Instructors, Second Officer Instructors and Training Check Airmen.

The Board assigned then-Senior Hearing Officer Joyce M. Klein to investigate.

IACP submitted an initial statement of position and supporting documents with its application on April 10, 1998. On April 17, 1998, Continental asked the Board to dismiss IACP's application. On April 28, 1998, Continental filed a formal response to the application, again seeking its dismissal. IACP responded to the Carrier's submission on May 13 and 18, 1998. On June 2, 1998, the Board sought additional information from the Carrier. That information was filed on June 23, 1998, and IACP filed a response to that submission on July 14, 1998. The Carrier filed an additional response on July 24, 1998.

On September 18, 1998, IACP asserted that by "declining to deduct dues from the wages of consenting instructor pilots," the Carrier was tainting the laboratory conditions necessary for any future election the Board may order. On September 22, 1998, the Carrier responded to that allegation asserting that it merely corrected a clerical error.

ISSUE

Are Instructor Pilots employed by Continental/Continental Express included in the craft or class of Pilots?

CONTENTIONS

IACP

IACP asserts that Instructor Pilots share a community of interest with the craft or class of Pilots and, as such, should be accreted into the craft or class. IACP notes that Pilots and Instructor Pilots receive almost identical salaries and benefits. Additionally, IACP points out that most Instructor Pilots come from the craft or class of Pilots and some return to work as Line Pilots. IACP also notes that Instructor Pilots work with Line Pilots on a regular basis.

IACP notes that during the 1993 election, the Carrier sought to include the Instructor Pilots in the craft or class. IACP argues that the Carrier's position in that case precludes its current argument that Instructor Pilots are not included in the Pilots craft or class.

Continental Airlines/Continental Express

The Carrier asserts that IACP's application should be dismissed, with prejudice, because it does not designate an appropriate craft or class for the employees at issue. Specifically, the Carrier asserts that Training Department Instructors and Training Check Airmen ("Instructors") have separate interests from Pilots and should not be included in the craft or class of Pilots.

Additionally, the Carrier argues that IACP's objections to including Instructors in the craft or class of Pilots in the 1993 election precludes the Organization from now seeking to accrete them without the benefit of a secret ballot election. The Carrier contends that IACP's application to accrete Instructors is an attempt to include them in the craft or class without benefit of a secret ballot election.

FINDINGS OF LAW

Determination of the issues in this case is governed by the Railway Labor Act, as amended, 45 U.S.C. §§ 151-188. Accordingly, the Board finds as follows:

I.

Continental Airlines/Continental Express is a common carrier by air as defined in 45 U.S.C. § 181 of the Act.

II.

IACP is a labor organization and/or representative as provided by 45 U.S.C. § 152, Ninth of the Act.

III.

45 U.S.C. § 152, Fourth, gives employees subject to its provisions ". . . the right to organize and bargain collectively through representatives of their own choosing." The majority of the craft or class of employees shall have the right to determine who shall be the representative of the craft or class for purposes of this chapter.

IV.

45 U.S.C. § 152, Ninth, provides that the Board has the duty to investigate representation disputes and shall designate who may participate as eligible voters in the event an election is required.

FINDINGS OF FACT

I. Background

On July 12, 1993, the Board certified IACP as the representative of "Airline Pilots" employed by Continental Airlines/Continental Express. During the investigation of that representation case, the Carrier initially asserted that Instructor Pilots were included in the craft or class of Pilots. At that time, IACP took the position that Instructor Pilots were not included in the craft or class of Pilots. However, by letter dated April 6, 1993, Continental informed the Board's mediator that it had revised its position on the eligibility of "Check Airmen/Instructors" and agreed with IACP that those individuals were not eligible to vote in the election among Continental's Pilots. The Board did not review the eligibility of "Check Pilots/Instructors," but they were not eligible to vote in the 1993 election. That election resulted in IACP's certification as the representative of the Carrier's Pilots. Now, IACP seeks to accrete the Instructors into the craft or class of Pilots.

At present, IACP represents all Pilots, including Line Check Airmen, but does not represent Flight Instructors, Second Officer Instructors and Training Check Airmen.

II.

The Carrier employs approximately 238 Flight Instructors, Second Officer Instructors and Training Check Airmen. The Carrier employs over 5,000 Line Pilots and Line Check Airmen.

A.

Instructor Pilots work in the Flight Standards and Training Department of the Flight Operations Division. Line Pilots report to the Flight Operations Department. Both departments are included in the Flight Operations Division.

Check Airmen report to the Manager of Pilot Training and Second Officer Instructors report to the Manager of Second Officer Training. The Operations Manual describes the Instructors' basic functions as providing flight instruction in simulators and aircraft, conducting flight proficiency checks, and acting as safety pilots during FAA type rating rides.

The duties and responsibilities of Instructor Pilots generally include maintaining proficiency and qualification as a flight instructor and check pilot on assigned aircraft; providing flight instruction in simulators and aircraft; evaluating trainee progress during simulator and flight training; recommending trainees for qualification or additional training; assisting in the development of procedures, curricula, study outlines, and techniques to guide the conduct of training and proficiency check activities;	and participating in the screening of potential new flight crew members.

According to Philip Beeson, Senior Director of Flight Standards at Continental Airlines, and Chuck Hobbs, Director of Flight Standards and Training at Continental Express, Instructor Pilots, "do not bid regular lines of flying, nor do they perform revenue flying on a regular basis."

Review of hours flown by Instructor Pilots during the period between January 1 and March 31, 1998 shows that compared to Line Pilots, Instructors flew in revenue service approximately 16% of the hours averaged by Line Pilots. Specifically, Line Pilots at Continental Airlines have a 72 hour per month minimum guarantee. Continental Airlines Instructors averaged 40 hours of revenue service over a three month period, or just over 13 hours per month. Line Check Airmen, who are included in the craft or class of Pilots, averaged 171 hours of revenue flying over the same three-month period. Line Pilots at Continental Express have an 80 hour minimum monthly guarantee and Instructors averaged 43 hours in revenue service over the three month period examined. Continental Express Line Check Pilots, who are included in the craft or class of Airline Pilots, averaged 196 hours of flying in revenue service over the same three-month period. According to Hobbs, most revenue flying performed by Instructor Pilots at Continental Express is on Initial Operating Experience (IOE) flights for new pilots.

According to Beeson, Training Instructors and Training Check Airmen are stationed in Houston, Texas and Line Check Airmen are stationed throughout the Carrier's system.

B.

Continental Airlines' Instructors are hired by the Training Department. The hiring and selection process for Instructors is outlined in Continental Airlines' Policy and Procedures Manual for Flight Standards and Training. That Manual provides a step by step guide which includes interviews by the Flight Standards Department followed by an informal interview with the appropriate Fleet Manager. The Manual provides further that the Senior Director of Flight Standards and Training will make the final decisions with input from Fleet Managers and interviewers.

On Continental Express, applicants for Line Check Airmen and Pilot Instructor positions follow almost identical processes. First, the applicant submits a resume and is recommended to the Chief Pilot and Program Manager. Then, the applicant is interviewed by the Chief Pilot, followed by the Program Manager. If the applicant is accepted by both the Chief Pilot and the Program Manager, the applicant is assigned to training and is evaluated during the training classes. If the applicant is successful in the training classes, that person will be recommended for an FAA evaluation.

At this point, an applicant for a Line Check Airman position would perform an actual line check. If the applicant is successful, he or she would receive a letter designating that person a Line Check Airman. Then, an applicant for a Pilot Instructor position would observe two training cycles. After the observation period, the applicant conducts two training sessions under the observation of a Check Airman. If after evaluation the applicant is approved by the Check Airman, the applicant is certified by the Training Department as an Aircraft Instructor. Similar steps are followed to gain certification as a simulator instructor.

C.

Compensation for Line Pilots and Line Check Airmen is covered by the collective bargaining agreement. Under that agreement, Pilots receive a minimum monthly 72 hour guarantee. Compensation above that guarantee is based upon either the "line value" of their schedule or the actual block hours flown, whichever is greater. Continental Airlines' Line Check Pilots receive a $20 override for each line check performed. The minimum monthly guarantee for Continental Express Line Pilots and Line Check Airmen is 80 hours and Line Check Airmen receive an override of $7.00 for line checks.

Compensation for Continental Airlines' Instructor Pilots is based upon an hourly rate equal to the rate for a Line Pilot with the same status and longevity. Instructor Pilots receive 90 times the hourly rate plus an override ranging between $500 and $900 per month. Continental Express Instructor Pilots are compensated based upon the higher of the Captain's pay rate for the equipment which they are qualified to operate or which they could hold on a system bid. Continental Express' Instructor Pilots have a minimum monthly guarantee of either 80 hours per month or five hours per day, whichever is greater. They receive an override ranging between $7.00 and $9.00 per hour.

Under the collective bargaining agreement, profit sharing for Continental Airlines Line Pilots begins after profits exceed $650 million in 1998 and $675 million in 1999. Instructors are entitled to the profit sharing benefit provided to management, which is a pro-rata share of 15% of the airline's profit. Profit sharing for Instructors at Continental Express is computed using a longevity-based percentage of pay multiplied by 100 hours for each year of service.

All Line Pilots, Line Check Airmen, and Instructors participate in the same medical, dental, vision, accident and life insurance programs. However, unlike Continental Pilots and Instructors, Continental Express Pilots and Instructors are not eligible to participate in a defined benefit pension plan.

All employees holding a first class FAA medical license are eligible for a loss of license/long term

disability insurance program. Additionally, Instructors are entitled to higher travel pass classification which is provided to management pilots.

DISCUSSION

The Board finds that Flight Instructors, Second Officer Instructors and Training Check Airmen are not included in the craft or class of "Airline Pilots" employed by Continental Airlines/Continental Express, and are not accreted to that craft or class.

I.

In determining the appropriate craft or class on a particular carrier, the Board examines a number of facts. These factors include functional integration,

work classifications, terms and conditions of employment and work-related community of interest. USAir, Inc., 15 NMB 369 (1988), British Airways, Inc., 10 NMB 174 (1983). The factor of work-related community of interest is particularly important. USAir, supra, United Airlines, 10 NMB 458, 467 (1983); Airborne Express, Inc., 9 NMB 115 (1981).

In determining that United Airlines' Pilots and Instructors belonged in separate crafts or classes, the Board considered the functional integration, work- related community of interest, and salary and fringe benefits and other terms and conditions of employment of the employees involved. United Airlines, supra; United Airlines, Inc., 9 NMB 266, 282 (1982).

Most recently, in considering whether Check Airmen were included in the same craft or class as Pilots at American Airlines, the Board compared the duties and functions, recruitment, and compensation and benefits of Check Airmen and Regular Line Pilots. American Airlines, Inc., 19 NMB 113, 126 (1991).1

The record in this case establishes that the Carrier's Instructor Pilots do not share a work- related community of interest with its Line Pilots and Line Check Pilots. Line Pilots fly passengers and cargo in revenue service, while Instructor Pilots provide flight and simulator instruction to pilots and trainees. Instructor Pilots do not bid for regular lines of flying. Instructor Pilots are hired by and report to the Flight Standards and Training Department, while Line Pilots and Line Check Pilots report to the Flight Operations Department. Instructor Pilots fly approximately 16% of the hours flown in revenue service by Line Pilots. Salary and benefits for Instructor Pilots are based generally upon those provided to Line Pilots. Some benefits, however, such as profit sharing and travel passes are similar to those provided to management pilots.

Since Instructor Pilots do not share a work- related community of interest with Line Pilots, they are not included in the same craft or class. As a result, the IACP's application to accrete Instructor Pilots to the craft or class of Airline Pilots is not appropriate and must be dismissed.

II.

IACP and the Carrier attach significance to the proceedings in the 1993 election in which IACP was certified as the representative of the Carrier's Pilots. Since the Board finds that Instructor Pilots are not included in the craft or class of Airline Pilots, their eligibility status in the 1993 election is irrelevant.

CONCLUSION

Flight Instructors, Second Officer Instructors and Training Check Airmen are not included in the Pilots' craft or class at Continental Airlines/Continental Express. Accordingly, IACP's application seeking to represent "Instructor Pilots as an accretion to the Pilots craft or class" is converted to NMB Case No. R-6652 and dismissed. The time limits of §1206.4 of the Board's rules are waived because the application does not cover an appropriate craft or class. 29 C.F.R. §1206.4.

Based upon its Dismissal of this case, the Board does not address IACP's allegations that the Carrier, by "declining to deduct dues from the wages of consenting instructor pilots" tainted the laboratory conditions.

By direction of the NATIONAL MEDIATION BOARD.

Stephen E. Crable

Chief of Staff

Copy to:

Mr. Daniel P. Casey

Jeffrey D. Wall, Esq.

Roland P. Wilder, Jr., Esq.

James F. Wallington, Esq.

Ernest E. Sowell, Esq.