AMR Corp.'s American Airlines lost a bid to stop a union-representation election for a group of employees as a federal appeals court threw out the carrier's lawsuit challenging the vote, Bloomberg News reported yesterday. The decision yesterday by the U.S. Court of Appeals in New Orleans means the union vote among approximately 10,000 passenger-service employees at the airline can proceed, the Communications Workers of America said. The CWA is seeking to represent the workers. The appeals court's decision is a setback for American, which is seeking to cut labor costs as part of its bankruptcy restructuring. The Fort Worth, Texas-based airline has negotiated cost-cutting deals with flight attendants, mechanics and other workers, and has won court approval to reject its labor contract with pilots. American sued the National Mediation Board in May to stop the union election by passenger service employees. U.S. District Judge Terry Means blocked the vote, and said that the board exceeded its authority when it authorized an election. The appeals court said in its decision that Means "erred in exercising jurisdiction." Judicial review of National Mediation Board decisions is appropriate only when the agency has committed egregious error, the court said.
