In Airline Service Providers Association v. Los Angeles World Airports, the Ninth Circuit held that the City of Los Angeles, operator of the fourth largest airport in the world, may require airline service providers to enter into Labor Peace Agreements with organized labor representatives. Although the court correctly ruled that the trade association plaintiffs had standing and that the plaintiffs should have the opportunity to amend their complaint, the court erred in affirming the district court’s decision to dismiss the complaint. Specifically, the Ninth Circuit erred in holding that the city was acting as a market participant, rather than a regulator, when imposing contract conditions on the service providers. The proximate holding that the National Labor Relations Act (NLRA) does not preempt the city’s action was premised on an error.
Klayton Sweitzer Hiland, War and (Labor) Peace: How the Ninth Circuit Changed the Rules of Engagement for Service Providers and Organized Labor, 83 J. Air L. & Com. 145 (2018)