# Appendix — BARR v. UNITED AIR AIRLINES, INC. (Nos. 83-1377, 83-1180, 83-1391)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1984

## Text

BO. 83-1377

IN THE SUPREME COURT OF THE UNITED STATES
OCTOBER TERM, 1983

JOYCE BARR, Petitioner,

UNITED AIR LINES, INC.,

ASSOCIATION OF FLIGHT ATTENDANTS,

and LIANE BUIX MCDONALD,
Respondents.

APPENDIX TO PETITION FOR WRIT OF
CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
POR THE SEVENTH CIRCUIT

Kenneth K. Flaxman

55 Bast Monroe Street
Suite 4005

Chicago, Illinois 60603
(312) 236-8558

Attorney for Petitioner

Opinion of the Court of Appeals....... la

Judgment Order, Court of Appeals...... 40a

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APPENDIX

IN THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

Nos. 82-2647, 82-2660, 82-2661

CAROLE ANDERSON ROMASANTA, et al., and
LIANE BUm McDONALD, on her own behalf and
and behalf of all others,

Plaintiffs-Appellants-
Cross-Appellees,
V.

UNITED Am LINES, INC., a corporation,
Defendant-A ppellee-

Cross-Appellant,

ASSOCIATION OF FLIGHT ATTENDANTS,
Intervenor-A ppellee.

Appeal from the United States District Court
for the Northern District of Illinois

No. 70 C 1157—James B. Moran, Judge
ARGUED May 9, 1983—DeEciDED SEPTEMBER 21, 1983

Before PELL and CUDAHY, Circuit Judges, and
GIBSON, Senior Circuit Judge.*

Floyd R. Gibson, Senior Circuit Judge for the Eighth Circuit,
sitting by designation.

PELL, Circuit Judge.

These interlocutory appeals concern the district court’s
determinations, following a hearing, as to the seniority
relief to which former flight attendants of United Air
Lines, Inc. (United), who left United because of that
airline’s “no-marriage” rule, are entitled upon reinstate-
ment with the airline.

The principal issue raised on appeal is whether the
district court properly applied the rule in Franks v. Bow-
man Transportation Co., 424 U.S. 747, 96 S.Ct. 1251, 47
L.Ed.2d 444 (1976), in granting seniority for competitive
purposes equal only to the number of days the claimants
had previously been employed as flight attendants by
United. On cross-appeal, United challenges the grant of
seniority retroactive to date of original hire for purposes
of compensation and other non-competitive benefits. Con-
solidated with this appeal and cross-appeal is the class’
appeal from the district court’s denial of injunctive relief
upon United’s recall in October, 1982, of 175 furloughed
flight attendants.

I. BACKGROUND

A. Prior Proceedings

Prior to November, 1968, United prohibited the con-
tinued employment as a flight attendant of any female
employee who married. United also employed a small
number of male flight attendants who were permitted to
retain their positions after marriage. On November 7,
1968, United and the flight attendants’ union agreed to
revoke this no-marriage rule. Reinstatement was offered
to those flight attendants terminated because of the rule
only if they had filed a grievance with the union or a
complaint with the Equal Employment Opportunity Com-
mission (EEOC).

: On November 27, 1968, Mary Burke Sprogis brought
_ suit in the Northern District of Illinois alleging that the

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no-marriage rule was violative of Title VII of the Civil
Rights Act of 1964, 42 U.S.C. §§ 2000e-2000e-17 (Title
VII). The district court granted summary judgment in
favor of Sprogis. Sprogis v. United Air Lines, Inc., 308
F.Supp. 959 (N.D Ill. 1970). That result was affirmed by
a majority of this court in June, 1971. Sprogis v. United
Air Lines, Inc., 444 F.2d 1194 ‘7th Cir. 1971).

During pendency of the Sprogis appeal, Carole Ander-
son Romasanta filed a class action in the Northern Dis-
trict of Illinois on behalf of herself and other United
flight attendants terminated because of the no-marriage
rule. The district court ruled that the Romasanta case
should not proceed as a class action but by individual in-
tervention of those discharged flight attendants who had
either filed a union grievance or an EEOC complaint. A
settlement was reached by the parties providing for re-
instatement and backpay awards to the plaintiffs and
a final order was entered by the district court approving
. the settlement.

One of the discharged flight attendants who had been
excluded from the Romasanta case because of the adverse
class ruling, Liane Buix McDonald (McDonald), sought
to intervene to challenge the class determination. The dis-
trict court denied intervention and an appeal was taken
to this court. A majority of this court reversed, remand-

nom. United Airlines, Inc. v. McDonald, 432 U.S. 385, 97
S.Ct. 2464, 53 L.Ed.2d 423 (1977).

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period from ninety days before the filing of EEOC
charges to the date on which the no-marriage rule was
abolished. McDonald v. United Air Lines, Inc., 587 F.2d
357 (7th Cir. 1978), cert. denied, 442 U.S. 934, 99 S.Ct.
2869, 61 L.Ed.2d 303 (1979).

On remand, the Association of Flight Attendants
(AFA), the union representing incumbent flight attend-
ants at United, was permitted to intervene. After notice
was given, approximately 1,750 potential class members
were identified. Before the commencement of individual
hearings to determine actual class membership, United
and the AFA successfully urged that the district court
hold an evidentiary hearing to determine whether rein-
statement with retroactive seniority to the date of original
hire would result in an “unusual adverse impact” on
incumbent flight attendants, see, Franks v. Bowman
Transportation Co., 424 U.S. 776, 779 n.41, 96 S.Ct. at
1270, 1271 n.41 (1976). In the course of the ensuing
hearing, the class plaintiffs clarified that they sought re-
instatement only as openings among the ranks of flight
attendants occurred (openings proposal) rather than im-
mediate reinstatement of the entire class.

In a memorandum and order issued January 8, 1982,
the district judge found the openings proposal, as condi-
tioned by the class, to be unworkable. He also found that
“unusual adverse impact” would surely result if the class
members were reinstated immediately with full retro-
active seniority for competitive purposes. The relief

tive purposes (relative seniority proposal). Under this
proposal, a class member whose seniority for competitive
purposes placed her at the ninetieth percentile when she
left United would be inserted into the current seniority
list at that same percentile. This motion was denied with-
out opinion. On July 12, 1982, the district judge issued
an order implementing his earlier memorandum and order.
He certified for immediate appeal the question whether
less than full retroactive seniority could be granted class
members for competitive purposes. See 28 U.S.C. § 1292
(b). The class’ appeal on that issue, No. 82-2660, and
United’s cross-appeal pertaining to the award of full
retroactive seniority for purposes of compensation and
other company benefits, No. 82-2661, followed.

In August, 1982, United indicated that it would recall
175 flight attendants from furlough on October 1. The
plaintiff class sought to enjoin this recall, believing that
it prejudiced the seniority rights awarded claimants pur-
suant to the order of July 12, 1982. The district court
denied the requested stay, refused to require the recall of
claimants rather than furloughees, and declined to rule on
the claimant class’ alternative request that they be per-
mitted to accrue seniority during the period of the recall.
The plaintiffs’ appeal from this ruling, No. 82-2647, has
been consolidated with Nos. 82-2660 and 82-2661 for
purposes of argument and decision.

B. Factual Background Relevant to Reinstatement Issues
1. Competitive and Company Seniority.

Seniority is extremely relevant to the flight attendant
position. The term “seniority” is used in several different
contexts. The first, company seniority, determines a flight
attendant’s number of vacation days and number of
passes to which he or she is entitled, as well as other
similar benefits provided by the airline. Company senior-
ity reflects the employee’s total service with the airline.
Because all of the matters determined by company senior-

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ity represent a cost to the airline, but are not otherwise
limited in their availability, the amount of company sen-
iority awarded the class members is extremely important
to United but has little direct impact on incumbent flight
attendants.

Classification seniority, on the other hand, reflects the
amount of time an employee has worked as a flight at-
tendant. Classification seniority is utilized in an absolute
sense to determine the flight attendant’s salary. Like
company seniority, the classification seniority awarded
class members for purposes of salary calculation is of
primary concern to United and of minimal concern to
incumbent flight attendants.

Classification seniority also is utilized in a relative sense
and is pertinent to those aspects of the flight attendant
job that require United to distinguish among the flight
attendants. For instance, the airline maintains eleven
separate “domiciles” to which flight attendants are as-
signed. Some, like Seattle and Miami, are considered far
more attractive by flight attendants than others, such as
Chicago. Because flight attendants bid for domiciles based
on their classification seniority, the flight attendant with
the greatest classification seniority relative to other flight
attendants, has the best chance of being stationed where
she chooses. The impact of relative classification senior-
ity, therefore, is directly felt by other flight attendants.
Because of this effect, we will hereafter in this opinion
refer to such seniority as “competitive seniority.” '

Besides determining the attendant’s domicile, competi-
tive seniority is utilized in furloughing, or laying off,
flight attendants if such action is required, with the least
senior employee being the one most vulnerable to fur- *
lough. Within each domicile, competitive seniority deter- ;
mines whether the flight attendant is a “lineholder,” who Og

“Competitive seniority” is therefore synonymous to “relative
classification seniority.”

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flies a predetermined fixed monthly schedule, or one who
must serve on “reserve,” in which case the flight attend-
ant’s lines of flying are determined by the airline, at its
option, and according to its needs. Competitive seniority
also determines whether the individual will work only
during weekdays or also during the weekend and whether
he or she will work a flight that offers premium pay.
Finally, and of extreme importance to the flight attend-
ants, whether one is subject to involuntary transfer to a
different domicile is determined by competitive seniority
within the domicile from which the flight attendants are
to be transferred.

Although much of the evidence presented in the trial
below on reinstatement issues will be developed later in
this opinion, it is important to note that assignment of a
domicile is considered extremely important by flight at-
tendants. The evidence indicated, for instance, that some
flight attendants would be more willing to fly “reserve” at
a more desirable domicile than to be a lineholder at a less
desirable domicile. Accordingly, the possibility of involun-
tary transfers is regarded with great concern. Such a
transfer presents the flight attendant with a choice of
relocating or “commuting” from one’s home to one’s
domicile. The cost of commuting—both in terms of time
and money—are significant. Similarly, the costs of re-
location can be exceedingly high in personal terms, par-
ticularly if the flight attendant has been assigned to one
domicile for a lengthy period of time and/or has a spouse
and children with work and community ties in that locale.

Not surprisingly, the other part of the flight attendant
experience affected by competitive seniority that is of
overriding concern to flight attendants is the possibility
of furloughs. A furloughed flight attendant does not
receive regular compensation during the furlough, does
not continue to accrue seniority, and all recall rights are
extinguished after the lapse of five years.

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2. Economic Factors.

Particularly relevant to disposition of this case are eco-
nomic factors affecting United in the past several years.
In the years 1979, 1980, and 1981, United experienced
operating losses, after taking into account the tax ad-
vantages of these losses, of $99,583,000, $15,043,000, and
$104,368,000, respectively. Undoubtedly reflecting this
economic picture, United has not hired a single flight at-
tendant since 1979 and has furloughed 1,530 employees
during that period. Although 547 of these employees were
furloughed because of cutbacks necessitated by the air
traffic controllers’ strike in 1981, and one would therefore
assume their lay-off to be temporary, the AFA brief
submitted in this case indicates that there are currently

1,255 furloughed flight attendants.

The district court also found that reinstatement of
1,480 claimants* would create an immediate non-recur-
ring cost to United in excess of $10,000,000. The annual
recurring cost to the airline of reinstating the claimants
would be approximately $21,000,000.

8. Factors Not Yet Determined by the District Court.

Although this court has accepted this interlocutory ap-
peal on the reinstatement issues, there are several facts
not yet determined that are relevant to the seniority issues
we address herein. First, the size of the class is not yet
certain. Subsequent to oral argument in this case, hear-
ings before special masters have commenced. The purpose

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of these hearings is to determine whether a claimant left
United because of the no-marriage rule or for other rea-
sons. Only upon completion of these hearings will there
be certainty as to the size of the class. Whether all class
members, once they are determined, will actually seek
reinstatement is similarly unknown.’

Second, the district court held hearings in November
and December, 1982, relating to the issues of back pay
and front pay for class members in this action. Front
pay is the amount that United would be required to pay
class members whole they await actual reinstatement by
the airline. Although the district judge did not consider
the impact of front pay in his order, that potential cost
is relevant to this appeal. Because of the financial im-
pact it would have on United, the airline has indicated
that it both could, consistent with the collective bargain-
ing agreement, and would furlough incumbent flight at-
tendants in order to permit a more rapid reinstatement
of claimants.

II. ISSUES RAISED BY INTERVENOR BARR

The initial issue we must consider is whether the dis-
trict court’s use of the number 1,400 as an estimate of
class members likely to seek reinstatement misrepresents
the size of the class and prejudices the results of analyz-
ing the impact on incumbents of the proposed seniority
remedies. Joyce Barr, a member of the class represented
by McDonald, urges that a substantially smaller number
should be utilized and that the class should be subdivided
between those former flight attendants who want to re-
turn to work and those who primarily seek a financial
remedy.

Barr’s argument is that the number 1,400 is unrealistic
because many of the persons who responded to the class

In portions of this opinion, the term “class members” is used
in speaking of all those persons who potentially will be found
entitled to relief and who will seek reinstatement.

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notice will be unable to prove that they left United
because of the no-marriage rule and, of those who survive
that threshold determination, many will not want to
return to a position they left fifteen or more years ago.
Barr asserts that McDonald is using this inflated number
in order to force financial concessions from the airline.
The result is that those class members who actively want
to return to ''nited are being sacrificed to a litigation
strategy that favors those seeking financial benefits,
rather than work, from this suit.

Contrary to Barr’s contentions, the 1,400 figure is not
simply McDonald’s estimate. It is the number upon which
the AFA, United, and McDonald agreed at pretrial con-
ferences in September, 1980, and February, 1981, because
all the parties recognized that some figure had to be used
for purposes of resolving the reinstatement issues in this
case. By the time the hearing below was held, all three
parties were urging different numbers, of which Me-
Donald’s 1,069, was the lowest.

The district court utilized the figure 1,400 after care-
fully analyzing the methodology used by McDonald in
arriving at the 1,069 figure. The district judge’s conclu-
sion was that any one mistaken assumption in McDonald’s
calculations would raise the figure by three to five hun-
dred class members and therefore the 1,400 figure was
more realistic.

The real difficulty here, as recognized by the judge be-
low, is that the relevant assumptions are untestable. Only
after the conclusion of the class membership hearings now
in progress, and scheduled over the next two to three
years, will it be clear who is in the class. Even that fig-
ure may not reflect the number of claimants who finally
seek reinstatement. That variable is virtually impossible
to assess at this time, especially because the attractiveness
of reinstatement may depend, in the view of some claim-
ants, on the resolution of this appeal.

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In International Brotherhood of Teamsters v. United
States, 431 U.S. 324, 376, 97 S.Ct. 1843, 1875, 52 L.Ed.2d
396 (1977), the Court observed that until “both the
number of identifiable victims and the consequent extent
of necessary relief have been determined, it is not possible
to evaluate the abstract claims concerning the equitable
balance that should be struck between the statutory rights
of victims and the contractual rights of nonvictim em-
ployees.” This passage suggests that the reinstatement
issues now before this court would be better addressed by
the district court only after the number of persons at
least entitled to reinstatement is determined. Delaying
resolution of the seniority questions to that time would be
the only practical way of responding to intervenor Barr’s
concerns.

The district court decided to proceed, however, and
this court has accepted the resulting interlocutory ap-
peal, because a case that has already been unresolved too
long threatens to extend indefinitely if resolution of the
seniority questions are delayed until completion of the
class eligibility hearings. Because the district court
found it imperative to proceed before the precise num-
ber of class members was determined, we can demand
no more than that the estimate of class members reflect

the varying positions of the parties and that the basis

for choosing the figure 1,400 be demonstrated in the
record. Both conditions are satisfied here.

Not only do we find the number 1,400 a reasonable
estimate of persons who will seek reinstatement, but, like
the district court, we are persuaded that McDonald is
not undermining the interests of some members of the
class. She has presented alternative proposals regarding
seniority relief, briefed each at length, and actively sought
full, retroactive seniority for class members. We find
no error in the district court’s refusal to subdivide the
class. Not only is subclassing unnecessary in view of
Me Donald's vigorous representation, but it would be im-

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possible to determine at this point which potential class
members “really” want to return to their positions at
United and which “really” seek only a financial remedy.

In light of our decision that the district court did not
err in utilizing the figure 1,400 and in refusing to sub-
divide the claimant class, we hereby deny the various mo-
tions pending before this court that pertain to materials
bearing on a reevaluation of the number of claimants
likely to seek reinstatement.‘

III. COMPETITIVE SENIORITY

The primary issue raised by the plaintiffs on this
appeal is whether the district judge abused his discre-
tion, particularly in view of Franks v. Bowman Trans-
portation Co., 424 U.S. 747, 96 S.Ct. 1251, 47 L.Ed.2d
444 (1976) (Franks), in declining to grant the class
members full, retroactive competitive seniority upon their
being rehired by United. The class members are entitled,
under the court’s ruling, to only the competitive seniority
they had actually accrued at the time they left United
because of the no-marriage rule.

A. Franks and Its Progeny ~

In Franks, the Supreme Court, reversing the Fifth
Circuit, held that nonemployees who had applied for and
been refused employment as over-the-road truck drivers
by Bowman Transportation Co. (Bowman) solely because
of their race were entitled, pursuant to Title VII, to sen-

~ lority status retroactive to the dates of their employment

* The following motions are accordingly denied: (1) Intervenor
Barr’s motion to supplement record on appeal (filed 5/18/83); (2)
AFA’s motion for leave to comment on intervenor Barr’s Circuit
Rule 11 submissions (filed 6/18/83); (3) class’ motion for leave to
file response to post-argument submissions (filed 4/20/83); (4)
response of intervenor Barr to AF A's motion for leave to file com-
ment (filed 5/20/83); and (5) responses of AFA to class’ motion
to file response to post-argument submissions (filed 5/27/83).

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applications. The Supreme Court reasoned that one of
the central purposes of Title VII is “ ‘to make persons
whole for injuries suffered on account of unlawful em-
ployment discrimination.’” 424 U.S. at 763, 96 S.Ct.
at 1268 (quoting Albemarle Paper Co. v. Moody, 422
U.S. 405, 418, 95 S.Ct. 2362, 2372, 45 L.Ed.2d 280
(1975) ), and that ordinarily a grant of seniority refleet-
ing the discrimination victim’s date of application is nec-
essary to achieve that “make-whole” purpose, 424 U.S. at
766-67, 96 S.Ct. at 1265.

One of the arguments advanced by Bowman in support
of the lower courts’ refusal to grant the seniority relief
was that the district court had correctly exercised its
discretion in denying retroactive seniority because of the
competing interests of incumbent employees. The Su-
preme Court rejected this argument for two reasons:
first, because the district court had not mentioned these
considerations in denying the relief,“ and, second, because
lilf relief under Title VII can be denied merely be-
cause the majority group of employees, who have not
suffered discrimination, will be unhappy about it, there
will be little hope of correcting the wrongs to which the
Act is directed.’” Id. at 775, 96 S.Ct. at 1269 (quoting
United States v. Bethlehem Steel Corp., 446 F.2d 652,
663 (2nd Cir. 19710). Although the Court
that the burden of granting competitive seniority falls
primarily on innocent incumbent employees, see 424 U.S.
at 773 n. 33, 776-78, 96 S.Ct. at 1268 n. 33, 1270-71, it
held that a “sharing of the burden of past discrimina-
tion” is “presumptively necessary,” id. at 777, 96 S.Ct.
at 1270.

The Court recognized, however, that an award of full,
retroactive seniority may not be appropriate in every
case. In footnote, the Court clarified that it did not

5 There is no indication in the Franks opinion that the question
of impact on incumbents had even been presented to the district
court.

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intend to abrogate the equity powers of the district
courts:

Rather our holding is that in exercising their eq-
uitable powers, district courts should take as their
starting point the presumption in favor of rightful-
place seniority relief, and proceed with further legal
analysis from that point; and that such relief may
not be denied on the abstract basis of adverse impact
upon interests of other employees but rather only on
the basis of unusual adverse impact arising from
facts and circumstances that would not be generally
found in Title VII cases.

Id. at 779 n. 41, 96 S.Ct. at 1271 n. 41.

The appellants interpret Franks as holding that a di-
minution of incumbents’ job expectations can never con-
stitute unusual adverse impact. Although they are less
explicit as to what would, in their view, constitute the
degree of impact envisioned by the Franks Court as suf-
ficient to preclude the granting of full, retroactive sen-
jority, two possibilities are suggested. First, circum-
stances unrelated to the impact on incumbents might sup-
port a finding of unusual adverse impact. Second, im-
plementing a seniority remedy so as to cause the dis-
charge of incumbent employees might result in “unusual
adverse impact.”

We find little support in Franks, the appellate decisions
of this and other courts that have applied Franks, or the
Supreme Court disposition in International Brotherhood
of Teamsters v. United States, 481 U.S. 324, 97 S.Ct.
1843, 52 L.Ed.2d 396 (1977) (Teamsters), for such a
limited interpretation of the “unusual adverse impact”
standard. Because the Franks Court was well aware that
the burden of granting retroactive seniority to discrimi-
nation victims falls primarily on innocent incumbents,
see 424 U.S. at 773 n. 33, 776-78, 96 S.Ct. at 1268 n.
33, 1270-71, there is no basis in either law or logic for
concluding that “unusual adverse impact” must reflect

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factors unrelated to the impact of the remedy upon in-
cumbent employees. Similarly, the Franks opinion no-
where states that only the resulting discharge of in-
cumbents will constitute unusual adverse impact. What
Franks does clarify is that full retroactive seniority
should not be routinely denied discrimination victims
merely because such relief will have some impact, as it
always will, on incumbents. Because neither the district
nor appellate courts in Franks had relied on the compet-
ing rights of incumbents as a ground for denying sen-
iority relief, the impact in that case was indeed “ab-
stract,” id. at 779 n. 41, 96 S.Ct. at 1271 n. 41, and was
not demonstrated by “facts and circumstances that would
not generally be found in Title VII cases,” id.

Our conclusion that Franks did not limit the “unusual
adverse impact” inquiry to the extent urged by the class
is supported by the Supreme Court disposition in Team-
sters. Again emphasizing that it is within the equitable
discretion of the district court, in the first instance, to
fashion a seniority remedy, the Court referred to the
“equitable balance that should be struck between the
statutory rights of victims and the contractual rights of

nonvietim employees,” 431 U.S. at 376, 97 S.Ct. at 1875,

and suggested in footnote that the number of victims, the
number of non-victim employees affected, the alternatives
available to incumbents, and the economic circumstances
of the industry would be relevant to the district court’s
exercise of discretion, id. at 376 n. 62, 97 S.Ct. at 1875,
n. 62. Focusing on the timing of the equitable remedy,
the Court observed that:

Especially when immediate implementation of an
equitable remedy threatens to impinge upon the ex-
pectations of innocent parties, the courts must “look
to the practical realities and necessities inescapably
involved in reconciling competing interests,” in order

a

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to determine the “special blend of what is neces-
sary, what is fair, and what is workable.”

Id. at 375, 97 S.Ct. at 1874 (citation omitted).

The courts of appeals similarly have not read Franks
as mandating so limited an inquiry as that urged by the
class. For instance, in Moore v. City of San Jose, 615
F.2d.1265, 1272 (9th Cir. 1980), the Ninth Circuit noted
the district court’s findings that, not only would no in-
cumbent lose his job, but that the seniority relief granted
the twelve class members would have “minimal” impact
on the incumbent workforce of 590 people. In Air Line
Stewards and Stewardesses Association, Local 550 v.
Trans World Airlines, Inc., 680 F.2d 1164, 1169 (7th
Cir. 1980), affd sub nom. Zipes v. Trans World Airlines,
Inc., 455 U.S. 385, 102 S.Ct. 1127, 71 L.Ed.2d 234
(1982), this court relied in part on the likelihood that the
claimants, who constituted three percent of the incum-
bent workforce, could be reinstated in less than one-half
year through normal attrition. In Air Line Stewards and
Stewardesses Association, Local 550 v. American Airlines,
Inc., 573 F.2d 960 (7th Cir. 1978), cert. denied, 439
U.S. 876, 99 S.Ct. 214, 58 L.Ed.2d 190, this court relied
in part on the representation made to the district court
_ that the class members, who again constituted approxi-
mately three percent of the incumbent workforce, would
return only to domiciles where openings occurred. Id.
This court also noted that the district court had made
“an admirable effort to sort out the likely impact of and
the ‘balance of equities’ surrounding the provision of ret-
roactive occupational seniority,” id. at 965, and had as-
sured itself that no present employees would lose their
jobs and “also that the number of returning employees
was not so large as to create undue problems,” id. Fi-
nally, in Association Against Discrimination in Employ-
ment, Inc. v. City of Bridgeport, 647 F.2d 256 (2nd
Cir. 1981), cert. denied, 455 U.S. 988, 102 S.Ct. 1611, 71
L.Ed.2d 847 (1982), the Second Circuit, in affirming the

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district court’s order of a freeze on incumbent promo-
tions in order to equalize promotional seniority among
current employees and victims of discrimination, noted
that it was possible the City could act to minimize the
burden on incumbents. Id. at 287.

The appellate cases discussed above compe! the conclu-
sion that courts have considered numerous factors, not
just whether current employees would lose their jobs, in
granting or reviewing a grant of seniority relief.“ We
therefore reject the appellants’ argument that the court
below abused its discretion in considering the many differ-
ent kinds of impact a grant of full, retroactive seniority
would have on those persons currently employed by United
as flight attendants.

* The only court of appeals case that arguably could be construed
to hold that it is an abuse of discretion, under Franks, not to grant
full, retroactive competitive seniority is Association Against Dis-
crimination in Employment, Inc. v. City of Bridgeport, 647 F.2d
256 (2nd Cir. 1981), cert. denied, 455 U.S. 988, 102 S.Ct. 1611, 71
L.Ed.2d 847 (1982). In a portion of that opinion not discussed
supra, the Second Circuit held that the district court had erred in
granting less than all the benefits of seniority to discrimination
victims. The court noted that the plaintiffs had not specified what
benefits they had been denied, id. at 288, but suggested that the
plaintiffs should be provided with vacation and sickpay appropriate
to their “rightful place” in the seniority system and should have
the benefits of seniority for purposes of avoiding lay-off if the City
maintained a last-hired-first-fired seniority system.

Initially, we note that benefits such as vacation days and sick
pay are not within the realm of “competitive” seniority. To the
extent that the Second Circuit did order an award of competitive
seniority without the benefit of any inquiry into what impact that
relief might have on incumbent employees, we decline to follow
the Bridgeport court’s interpretation of Franks in light of this
court’s previous observation that it is both proper and necessary
to “sort out the likely impact of and the ‘balance of equities’ sur-
rounding the provision of retroactive occupational seniority.” Air
Line Stewards and Stewardesses Association, Local 550 v. American
Airlines, Inc., 573 F.2d 960, 965 (7th Cir. 1978), cert. denied, 489
U.S. 876, 99 S.Ct. 214, 58 L.Ed.2d 190.

18a

B. Application of Franks and Teamsters to this Case

Franks mandates that a finding of “unusual adverse
impact” be based on factors not generally found in a
Title VII case. 424 U.S. at 779 n.41, 96 S.Ct. at 1271
n. 41. Teamsters suggests that the relevant considerations
would include the number of victims, the number of non-
victim employees affected, the alternatives available to
incumbents, and the economic circumstances of the in-
dustry. 431 U.S. at 376 n. 62, 97 S.Ct. at 1875 n. 62.

Relying on the first two factors enunciated in Team-
ters, the appellants argue that the ratio of class members
to incumbents in this case, sixteen percent, is less than
that in Franks, Teamsters and Association Against Dis-
crimination in Employment, Inc. v. City of Bridgeport,
647 F.2d 256 (2nd Cir. 1981), cert. denied, 455 U.S. 988,
102 S.Ct. 1611, 71 L.Ed.2d 847 (1982).7 Because none
of those cases precluded an award of full, retroactive com-
petitive seniority, and particularly because the Second
Circuit in the Bridgeport case held that the district court
had abused its discretion in ordering less than full sen-
iority, the appellants claim that the judge below should
have ordered the full measure of competitive seniority.

The difficulty with the class’ argument is that it focuses
on only two of the factors enunciated by the Teamsters
Court. The current economic conditions affecting the air-
line industry are extremely relevant to the present case
and, under Teamsters, were properly considered by the
district court. By contrast, economic considerations have
not been deemed pertinent to other courts of appeals de-
cisions regarding competitive seniority. We conclude,

7 The appellants assert that the class members in Bridgeport
constituted twenty percent of the incumbent workforce. This repre-
sents the ratio of the 102 persons ordered entitled to priority in
hiring by the district court to the workforce of 512. Because the
‘court of appeals reduced the number on the priority hiring list
to 73, the correct percentage would appear to be fourteen percent.

19a

therefore, that the prior case law has limited relevance to
evaluation of the district court’s application of Franks
and Teamsters to this case and reject the appellants’

° suggestion that an award of retroactive competitive sen-
iority is required in this case because of the ratio of
class members to incumbents.

Having determined that the district court neither ig-
nored nor misapplied the controlling principles of law, our
task on review is to determine whether evidence in the
record supports its conclusions that an award of full,
retroactive competitive seniority would result in an “un-
usual adverse impact” on incumbents. Before undertak-
ing that review, however, we address the appellants’
contention that the district court mischaracterized the
relief they sought.

During the course of the trial below on reinstatement
issues, the class clarified that it sought reinstatement at
United only as openings permitted. This proposal was
conditioned in several ways, which are developed in detail,
infra. In his memorandum opinion, the district judge did
consider this openings proposal. He found it unworkable
because of the conditions upon which the class insisted.
The district court then also considered the impact of

Having determined that Franks and Teamsters require the dis-
trict court to evaluate carefully the many facets of impact that an
award of competitive seniority will have on innocent, incumbent
employees, the fact that we herein review the district court’s
denial, as a matter of discretion, of full competitive seniority relief
further distinguishes this case from previous decisions in which
this and other courts of appeals have reviewed a grant of full
seniority. See, e. g., Air Lines Stewards and Stewardesses Associa-

° tion, Local 550 v. Trans World Airlines, Inc., 680 F.2d 1164 (7th

Cir. 1980), af d sub nom. Zipes v. Trans World Airlines, Inc., 446

? U.S. 385, 102 S.Ct. 1127, 71 L.Ed.2d 284 (1982); Moore v. City of

4 San Jose, 615 F.2d 1265, 1271-72 (9th Cir. 1980) ; Air Lines Stewards

and Stewardesses Association, Local 550 v. American Airlines, Inc.,

4 _ $73 F.2d 960 (7th Cir. 1978), cert. denied, 489 U.S. 876, 99 S.Ct.
7 214, 58 L.Ed.2d 190.

20a

immediate reinstatement of all the class members and
concluded that “unusual adverse impact” would result.
He similarly considered the impact that would result if
the openings proposal were workable and were imple-
mented and, as to some of the categories of consequences
reviewed, found it to be somewhat less than the impact
of immediate reinstatement.

We find no error in the district court’s consideration of
the impact that would result from immediate reinstate-
ment of the class. Such analysis was wholly appropriate
in light of the mandate in Franks and Albermarle Paper
Co. v. Moody, 422 U.S. 405, 418, 95 S.Ct. 2362, 2372, 45
L.Ed.2d 280 (1975), that the district court should fashion
a remedy that would “make [the class] whole” for the
injuries suffered as a result of discrimination. Further,
the district court did not ignore the openings proposal but,
rather, found it both unworkable and the cause of signifi-
cant, adverse impact on incumbents if it were workable.
We are not persuaded, therefore, that the district court’s
“error” lay in its mischaracterization of the relief sought
by the class.

C. Review of the District Court's Findings

A total of three proposals regarding seniority relief
were presented by the class. We first review the findings
regarding immediate reinstatement of the class. Second,
we review the determinations regarding the openings
proposals and, finally, we consider the class’ request for
relative seniority.

Throughout his opinion, the district judge grouped the
consequences of granting the requested relief as follows:
(1) the possibility of furloughs and firings; (2) the po-
tential for involuntary transfers; (3) demotions to re-
serves; (4) impact on lineholder schedules; (5) the eco-
nomic impact on United; and (6) the impact on minority 92
hiring. The findings of unusual adverse impact“ relate
primarily to the considerations relevant to groups (1)

214

and (2). In reviewing the lower court’s findings, there-
fore, we shall address primarily the possibility of fur-
loughs and firings and the potential for involuntary
transfers.

1. Immediate Reinstatement.

The district judge found that if the 1,400 class mem-
bers were immediately reinstated by United, all incum-
bent attendants hired by United since March 7, 1977,
would be furloughed. Those incumbents who were fur-
loughed would suffer immediate financial consequences
from loss of income. Further, it is possible that many of
those furloughed as a result of reinstating the class, as
well as those flight attendants already on furlough, would
not be recalled before the five-year limit and would there-
fore effectively be “fired.”

As discussed in Section III (A), supra, the appellants
themselves seem to suggest that a discharge of incumbents
because of relief granted to discrimination victims might
constitute “unusual adverse impact.” The combination of

a very large class and an economically depressed airline

industry might well result in a significant number of
current United flight attendants losing their jobs. We
find ample support in the record for this finding and for
the district judge’s conclusion that such an impact would
be “unusually adverse.”

Immediate reinstatement would also result in a large
number of involuntary transfers. As indicated supra,
United maintains eleven separate domiciles for which
flight attendants “bid” based on their seniority. Working
from the assumption that returning class members would
seek assignment to the domicile nearest their current
residence, the district judge found that 147 claimants
would choose to go to Seattle, one of the inost popular
domiciles. If they did, thirty-five percent of the flight
attendants currently domiciled in Seattle would be sub-
ject to involuntary transfer to another domicile. Those

22a

subject to transfer would be all Seattle-based flight at-
tendants hired after September 30, 1969.

Because the popular Miami domicile is considerably
smaller than the Seattle one, the impact there would be
even more striking. If the 143 claimants who live nearest
the Miami domicile all returned, seventy-six percent of
the current Miami domiciliaries would be subject to
transfer. This would include all flight attendants cur-
rently stationed in Miami who were hired after February
28, 1966.

The effect of an involuntary transfer is to force a flight

attendant either to disrupt his or her family and com-
munity life or to commute to the new domicile. There is
evidence in the record of this case that many of these
displaced incumbent flight attendants would resign their
positions with United rather than suffer the disruption
associated with transfer or incur the costs, in both time
and money, involved in commuting.

Choosing to resign in the face of two equally unsatis-
factory alternatives—relocating or commuting—may be
marginally preferable to being furloughed for an extended
time or effectively discharged upon the expiration of recall
rights. The difference, however, is merely a matter of
degree. There is ample evidence in the record to support
the district judge’s findings regarding the impact of in-
voluntary transfers on incumbents and the likelihood that
such transfers would result from the immediate reinstate-
ment of the class members. We cannot say that the dis-
trict judge abused his discretion in characterizing this
impact as unusually adverse.

Of the other consequences of immediate reinstatement
discussed by the district court, the most significant is the

impact on minority flight attendants currently employed
by United. Pursuant to a consent decree entered in 1976,

EEOC v. United Airlines, Inc., No. 73 C 973 (N. D. Il.

1976), af d, 560 F.2d 224 (7th Cir. 1977), cert. denied,

23a

434 U.S. 1063, 98 S.Ct. 1237, 55 L. Ed. 2d 764 (1978),
United has hired an increasing number of flight attend-
ants who are members of minority groups in recent year:.
Accordingly, these persons have relatively low seniority.
They would, therefore, be more affected as a group by the
immediate reinstatement of the class than the other in-
cumbent flight attendants. Evidence in the record sug-
gests that immediate rehiring of all class members would
decrease the percentage of minority flight attendants
from fifteen to ten percent. Further, because of the many
furloughs that would result from implementation of this
remedy, there would be less or no hiring by United in the
next several years and the number of minority members
working as United flight attendants would not be in-
creased by new hires. .

The judge below did not find that the consequences to
minority flight attendants would, by themselves, consti-
tute “unusual adverse impact.” Nonetheless, we believe
the district judge correctly considered this impact to be
significant. When it is considered along with the possi-
bility of furloughs, possible firings, and involuntary trans-
fers, the impact on minorities buttresses the district
court’s conclusion that “unusual adverse impact” would
result if the class members were immediately reinstated.

2. Openings Proposal.

The claimants do not suggest that they will wait pas-
sively for openings to occur among the rank of flight
attendants without regard to how long the delay in re-
instatement might be. The class conditioned their open-
ings proposal on all claimants being fully reinstated
within two and one-half to three years. McDonald indi-
cated that if that timetable were not met, she would
“undoubtedly . . . petition the court to modify the decree.”
Second, all openings were to be filled by class members
before any furloughed incumbent flight attendant was

24a

“front pay” consisting ci full pay and benefits . all
class members were reinstated.’

The proposal also required United to “take appropriate
steps to encourage the creation of openings.” Two spe-
cific suggestions were made by the class: initiation of an
early retirement program and the creation of a continuing
“shared work” program.

The district court found that it lacked power to impose
either the early retirement or shared work program. Ab-
sent any allegation that the United-AFA collective bar-
gaining agreement violates the Civil Rights Act or wrong-
fully perpetuates the effects of past discrimination, the
court below lacked the power to rewrite the terms of that
agreement to provide for either of the programs sug-
gested by plaintiff class. See Myers v. Gilman Paper
Corp., 544 F.2d 837, 857 (5th Cir. 1977), amended and
modified on other grounds, 556 F.2d 758, cert. dismissed,
434 U.S. 801, 98 S.Ct. 28, 54 L.Ed.2d 59.

Absent affirmative action to encourage openings, the
district court found that the openings proposal was un-
workable, primarily because of the two and one-half to
three year time limit. The feasibility of meeting the time
limit turns primarily on two factors: the anticipated at-
trition from the ranks of flight attendants and the antici-

pated growth in the total number of flight attendants

required by United.

Experts for both the plaintiffs and United testified as
to attrition rates. The plaintiffs’ expert, Dr. Carl Hoff-
man, predicted an attrition of between 670 and 833 flight
attendants by year-end 1983. These figures represent an
attrition rate of approximately three and one-half percent.
United’s expert, however predicted that the attrition rate
would be something under one percent over the next five
years, resulting in 367 available places for flight attend-

* As indicated in Section I(B) (3), the district court has not yet
resolved the issue of front pay.

- " by

lip So oe ** * *
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25a

ants. Judge Moran did not credit one expert over an-
other. He noted that both were subject to challenge on
methodological grounds, and “most importantly, both are
subject to certain imponderables beyond the control of
the airline or the flight attendants that will greatly affect
the rates of attrition.”

The failure to resolve definitively how much attrition
will occur among United flight attendants is not critical,
however, because it is clear that 1,400 class members
could not be reinstated within the me frame set by Me-
Donald without some growth in the total number of active
flight attendants required by the airline.

United had originally projected an annual growth rate
of four to five percent. This would have resulted in the
recall of 102 furloughees in 1981. Instead, 125 flight at-
tendants were furloughed in July, 1981. Another 350
flight attendants were furloughed in September, 1981,
and because of the strike by the professional air traffic
controllers and the resulting reduction in the number of
United flights, another 547 were furloughed in October,
1981. United’s “growth projections” for 1981 were ac-
cordingly off by 1,124 individuals.

United now projects no growth for the next few years.
According to the brief submitted by the AFA, there are
still 1,255 United flight attendants on furlough. It is
apparent that, absent a dramatic change in the economies
affecting the airline industry, it will be impossible for
United both to recall those flight attendants currently on
furlough and to provide places for the 1,400 class mem-
bers within the two and one-half to three year limit set
by the class. Even if the class members could all be re-
instated within that period, which appears unlikely, the
result is that some current furloughees would be effec-
tively discharged at the expiration of their ts.
This is the same effect that the district judge found, when
considering immediate reinstatement of the class, to con-
stitute “unusual adverse impact.”

a} ; ’ ö 15
*.

26a

Even if the openings proposal were “workable,” there-
fore it is likely that some furloughees would eventually lose
their job with United. This effect would be exacerbated
if the district court awards front pay to the class and 0
United creates artificial vacancies by furloughing incum-
bent flight attendants. United has indicated that it would
take such action in order to avoid paying full salaries to
those waiting for reinstatement. Although no award of
front pay has yet been made, this possibility is relevant
because it suggests that the impact of the openings pro-
posal would be virtually indistinguishable from that of
immediate reinstatement insofar as furloughs and pos-
sible firings are concerned.

Further, even if the openings proposal were workable
within the conditions set by the class, there is no indica-
tion that the impact, in terms of involuntary transfers,
would be appreciably less than if the class members were
reinstated immediately. The greatest attrition occurs
among the more junior flight attendants. As a result,
the majority of openings will occur at the less popular

domieiles. Because of the significant competitive seniority
that returning class members would have, they would gen- |
erally be able to utilize that seniority to be stationed at |
the domicile of their choice. There is simply no guarantee
that openings would occur at the domiciles that class
members would request. If they did not, incumbents now
stationed at those domiciles would have to be involuntarily
transferred to the less popular domiciles where the open-
ings had occurred.

The only other alternative would be for class members
to wait until an opening occurred at the domicile of his
or her choice or to accept employment wherever a vacancy
occurred, regardless of domicile. The class members have
not indicated a willingness to do either. The time limit
set by the class precludes the first option which might, as
the district court recognized, involve an inordinately long
wait. Further, even if the class members indicated a will-

27a

ingness to suffer such a long delay in reinstatement,
United might be expected, if front pay were awarded, to
create false vacancies to put the class members back to
work at domiciles of their choice. The result in this case
would be virtually the same as if the class members were
immediately reinstated.

Both in terms of furloughs or firings and the potential
for involuntary transfers, there is ample support in the
record for the district court’s conclusion that the impact
on incumbents resulting from implementation of the open-
ings proposal would be only slightly less than if the entire
class were immediately reinstated. More importantly,
there is support for the judge’s conclusion that the condi-
tions insisted upon by the class as part of the openings
proposal simply cannot be met. Bearing in mind that, in
Teamsters, the Supreme Court indicated that in “devising
and implementing remedies under Title VII.. . a court
must. . determine the ‘special blend of what is neces-
sary, what is fair, and what is workable,’” 431 U.S. at
375, 97 S.Ct. at 1874 (citation omitted, we find no abuse
of discretion in the district court’s rejection of the class’

openings proposal.

3. Relative Seniority.

Pursuant to the class’ motion to reconsider, the district
judge considered and rejected an alternative proposal
which would have given class members the same “rela
tive” seniority they had when they left United. Under
this relative seniority proposal, a class member who was
in the sixty-seventh percentile for seniority purposes when
she left United because of the no-marriage rule would,
upon reinstatement, be placed at that same percentile.”

10 The district court denied the motion to reconsider without
opinion. We reject the plaintiffs’ contention that the court’s failure
to issue an opinion constitutes “clear error” under Franks. The
court had advised the parties, prior to the trial on reinstatement
issues, that he would consider the full “ of

28a

At the time of the plaintiffs’ terminations, sixteen percent
were in the top quarter of the seniority rankings, twenty-
seven percent were in the second quarter, thirty-five per-
cent were in the third quarter, and twenty-two percent
were in the bottom quarter.

Under the remedy devised by the district court, approxi-
mately ninety-three percent of the claimants will be in
the bottom quarter of the seniority list. The plaintiffs
argue that stagnation at the top of the seniority list
means that they will remain at the bottom of the list for
the rest of their careers. They therefore suggest that the
relative seniority proposal at least achieves the district
court’s apparent goal of placing them where they were
when they left United, whereas the relief granted by the
court below actually gives them far less.

The difficulty with the relative seniority proposal stems
largely from the change in how flight attendants view
their flying experience in the 1980’s as compared to the
1960’s. What was once viewed as a temporary, glamorous
job is now considered a career position. As a result, a
flight attendant who began working for United in 1966
had accrued as much relative seniority by late 1968 as a
flight attendant who began in 1970 had by 1982. The rela-
tive seniority proposal effectively equates twenty months
of experience fifteen years ago to twelve years of more
recent experience. Such a result places a great burden on
incumbents who were in no way responsible for United’s
no-marriage rule.

Whether that burden would, in a different economic
setting, be consistent with the shared-burden rationale

remedies. The detailed opinion issued by the district judge demon-
strates that he fulfilled this promise. As our review of the relative
seniority proposal indicates, see infra, its impact is different in only
a matter of degree from the proposals discussed at length by the
district court. We find no error in the district judge's failure to
write yet another lengthy opinion concerning the same issues that
had already been treated in depth in the memorandum opinion.

} **

29a

° articulated in Franks, 424 U.S. at 777, 96 S.Ct. at 1270,
need not be resolved because implementation of the rela-
tive seniority proposal would, in the context of this case,
result in “unusual adverse impact” on incumbents. In
light of the small attrition rate at United and, more im-
portantly, the lack of anticipated growth in the total num-
ber of flight attendants required, the effect of granting
the plaintiffs relative seniority would be to require the
existence of 951 openings in the ranks of flight attendants
before the most senior of the current furloughees would
be recalled. Because there are currently 1,255 flight at-
tendants on furlough, there would have to be over 2,000
openings for flight attendants within the five-year limit,
at the conclusion of which furloughees lose their recall
rights, in order for the class members to return to United
without some percentage of incumbent furloughees losing
their job as a result.

The relative seniority proposal, if implemented on an
“openings” basis, as apparently the class intends, does
not resolve the impossibility of reinstating the class mem-
bers within the time limit set by the class. The district
court found it unlikely that sufficient openings would oc-
cur to accommodate the class members if they were hired
before any furloughees were recalled. Utilizing the rela-
tive seniority approach, some furloughees would be re-
called before some of the least senior class members. As
a result, more than 1,400 openings would be required to
reinstate both the class and the more senior of the current
furlougtiees within the time limit. The relative seniority
proposal, implemented on an openings basis within the
time limit set oy the class, is even less workable than the
openings approach presented by the class during the trial
below.

To reintegrate immediately the 1,400 class members
into the active work force, even with relative seniority,
5 would differ from immediate recall with full seniority
é only in a matter of degree. The furlough of flight attend-

30a

ants now in active service would be necessary. The possi-
bility is strong that many of the furloughees, quite likely
those laid-off as a result of the reinstatement of the plain-
tiffs and almost certainly some of the present furloughees,
would not be recalled within the five years and would,
therefore, lose their jobs.

Similarly, because many of the class members would
enter the ranks of flight attendants with substantial sen-
iority, the likelihood of involuntary transfers of incum-
bents remains extremely high. This is true whether
reinstatement were implemented immediately or on an
openings basis.

In summary, we conclude that those factors compelling
a conclusion of unusual adverse impact under the immedi-
ate reinstatement or openings proposals are mitigated to
only a slight extent if the class members are granted rela-
tive seniority. The remaining “unusual adverse impact”
on the incumbents makes this remedy, under Franks,
inappropriate and the district judge did not abuse his
discretion in declining to adopt it.

IV. ISSUES RAISED ON CROSS-APPEAL

On cross-appeal, United urges that the district court
ecred in awarding the plaintiff class seniority from the
date of original hire for purposes of compensation and
various benefits such as the number of vacation days and
number of passes a flight attendant receives.“ Unlike
competitive seniority, see Section I(B)(1) supra, the
burden associated with this award of non-competitive sen-
jority falls primarily on United rather than on incum-
bent flight attendants.

1 Referring to the terminology developed in Section I(B) (1),
supra, seniority from date of original hire was awarded the class
for purposes of company seniority and classification seniority
utilized in the absolute sense. Apparently, compensation is the
only variable determined by this absolute use of classification
seniority.

31a

United asserts that Franks requires a district court to
“balance the equities” in awarding seniority relief and
offers two arguments in support of its conclusion that the
equities favoring the plaintiffs are few. As discussed in
Section III(A) supra, Franks created a presumption in
favor of full retroactive seniority relief, implemented on
an openings basis, in Title VII cases. Franks, 424 U.S.
at 779 n. 41, 96 S.Ct. at 1271 n. 41. Arguably, the ap-
proach taken by the Teamsters Court could be charac-
terized as a balancing of equities. 431 U.S. at 374-76, 97
S.Ct. at 1874-75. The court below reconciled the language
in Franks and Teamsters by applying the Franks pre-
sumption, requiring United and the AFA to carry the
burden of demonstrating “unusual adverse impact,” and
relying on the factors enumerated in Teamsters as rele-
vant to that showing. Absent any explicit statement in
Teamsters that the standard enunciated in Franks was
no longer viable, we believe the approach taken by the
district court is correct and have followed the same mode
of analysis on appeal. We are not persuaded, therefore,
that United’s characterization of this case as one involv-
ing a mere balancing of equities is correct.

Our reluctance to resolve this case by a balancing of
equities is quite relevant to evaluation of one of the argu-
ments posed by United. United stresses the equities in
its favor: that the airline promptly abrogated the no-
marriage rule once it became clear that the rule violated
Title VII, and that, although other airlines had similar
rules during the period that United’s was in effect, only
United is subject to a potential liability that includes an
increase in annual operating expenses of approximately
$21,000,000. United also stresses the change in how flight
attendants view their position—what was once a job of
limited duration is now a career position—and concludes
that there is only a one-in-three chance that a flight at-
tendant who married between 1965 and 1968 would still
be flying for the airline, even if the no-marriage rule had
never existed. In this regard, United finds it significant

: *
’ * 3 1 (WA. \ *
Fele

that less than ten percent of the potential class members
reapplied to United as preferred hires after abrogation
of the rule.

Finally, United asserts that the incumbent flight attend-
ants are extremely hostile to the class members and that
such hostility, together with service reductions United
will be forced to make as a result of the relief granted
the class, will have a negative impact on the public served
by the airline.

Although the judge below did not address all of these
factors in the portion of his opinion discussing company
seniority, the district court opinion, read as a whole, does
recognize the “equities” favoring United. The conclusion
drawn by Judge Moran regarding these issues differs
from that of United primarily because the district court
read Franks as mandating the fullest possible relief for
the class. Because we concur with the district judge’s
reliance on, and interpretation of, Franks, we are not
persuaded by United’s argument that the district court

failed to weigh properly the equities in this case.

The second argument raised by United in support of its
contention that the award of non-competitive seniority was
an abuse of the district court’s discretion relies on United
Air Lines, Inc. v. Evans, 431 U.S. 558, 97 S.Ct. 1885, 52
L.Ed.2d 571 (1977), Zipes v. Trane World Airlines, Inc.,
455 U.S. 385, 102 S.Ct. 1127, 71 L.Ed.2d 234 (1982), and
Ford Motor Co. v. EEOC, —— U.S. ——, 102 S.Ct. 3057,
73 L.Ed.2d 721 (1982). United asserts that because many
members of the plaintiff class did not individually file
timely charges with the EEOC and did not subsequently
return to United as preferred hires after abolition of
the no-marrige rule, they have failed to meet the prerequi-
sites necessary to an award of retroactive seniority for
non-competitive purposes.

1 United also relies on this argument as an alternative ground
in support of the district court’s judgment regarding competitive

33a

In United Air Lines, Inc. v. Evans, 431 U.S. 553, 97
S.Ct. 1885, 52 L.Ed.2d 571 (1977), the plaintiff, who had
left United because of the no-marriage rule,“ did not
file a charge with the EEOC within ninety days. Approxi-
mately four years later, in 1972, she returned to United
but was not granted retroactive seniority upon her return.
The following year, Evans filed charges with the EEOC
alleging that United had discriminated against her and
continued to do so. The Supreme Court held that, because
of Evans’ failure to filed a timely charge before the
EEOC in 1968, the airline’s discriminatory action in dis-
charging her was of no legal consequence. Jd. at 558, 97
S.Ct. at 1889. Further, the Supreme Court held that
Evans demonstrated no continuing violation of Title VII
because she introduced no evidence that she was being
treated differently, pursuant to United’s seniority system,
from other flight attendants—male or female—who had
been discharged for non-discriminatory reasons and sub-
sequently rehired. Id.

Evaus is distinguishable from the present case in that
Evans was not a class action whereas the present case is.
It is well established that, in a Title VII class action,
unnamed plaintiffs are not precluded from class member-
ship merely because they did not individually file timely
EEOC charges. Zipes v. Trans World Airlines, Inc., 455
U.S. 385, 396, 102 S.Ct. 1127, 1134. 71 L.Ed.2d 234
(1982) ; United Airlines, Inc. v. McDonald, 432 U.S. 385.
389 n. 6, 97 S.Ct. 2464, 2467 n. 6, 53 L.Ed.2d 423 (1977);
Franks v. Bowman Transportation Co., 424 U.S. 747, 771,
96 S.Ct. 1251, 1267, 47 L.Ed.2d 444 (1976); Albermarle
Paper Co. v. Moody, 422 U.S. 405, 414 n. 8, 95 S.Ct. 2362,
2370 n. 8, 45 L.Ed.2d 280 (1975). United recognizes this
distinction yet urges that the failure of individual class

seniority. Because we have resolved that issue on the grounds set
forth in the district court opinion, we will not consider United’s
alternative ground in that context.

13 Evans is a member of the claimant class in this case.

4 N 5 3 2 . FS 8
II SB i, oe Te Se e c em, One 2

34a

members to file timely EEOC charges is nonetheless rele-
vant to the “balancing of equities” required in this case.
Zipes v. Trans World Airlines, Inc., 455 U.S. 385, 102
S.Ct. 1127, 71 L.Ed.2d 284 (1982), is relevant to this
prong of United’s argument.

The plaintiff class in Zipes involved a large percentage
of persons who had neither themselves filed charges with
the EEOC nor been discharged, pursuant to Trans World
Airlines’ rule prohibiting mothers from employment as
flight attendants, within ninety days preceding the filing
of charges by other class members. This court had held
that this subgroup of the plaintiff class was jurisdiction-
ally barred from relying on Title VII. In re Consolidated
Pretrial Proceedings, 582 F.2d 1142 (7th Cir. 1978),
rev'd sub nom. Zipes v. Trans World Airlines, Inc., 455
U.S. 385, 102 S.Ct. 1127, 71 L.Ed.2d 234 (1982).

_ While petitions for certiorari were pending on the jur-
isdictional issue, the plaintiff class and the airline reached
a settlement agreement that was approved by the district
court and by the Seventh Circuit. That agreement pro-
vided for retroactive seniority relief for the entire class,
including those members whom the Seventh Circuit had
held jurisdictionally barred from Title VII relief.

Although the Supreme Court reversed the Seventh Cir-
cuit’s decision regarding jurisdiction, it affirmed this
court’s approval of the settlement agreement. Zipes, 455
U.S. at 401, 102 S.Ct. at 1136. Concurring in the result
as to the award of retroactive seniority, Justice Powell
wrote:

[When the victims of discrimination have slept on 5
their rights, it will often be unfair to award them oe
full retroactive seniority at the expense of employees 25
who may have accrued their present seniority in good
faith. When timely charges have not been filed, a dis-
trict court should consider these equities in determin-

35a

ing whether to award competitive-status seniority,
and the presence of a settlement between the em-
ployer and the plaintiffs should not affect the balanc-
ing of these equities.

Id. at 401 n. 1, 102 S.Ct. at 1137 n. 1 (opinion of Powell,
J., concurring in the judgment in No. 80-951).

The above-quoted language from Justice Powell’s opin-
ion forms the primary basis for United’s argument that it
is inequitable to award retroactive seniority for non-
competitive purposes to the plaintiff class in this action.
The argument is inapposite for two reasons. First,
Justice Powell’s remarks are directed to competitive rather
than non-competitive seniority. Second, United overlooks
the fact that the class members in this case are not in
the same position of having “slept on their rights” as the
subclass of plaintiffs in Zipes. The class membership in
this case was carefully limited to include only flight at-
tendants who had left United pursuant to the no-marriage
rule within the period from ninety days before the filing
of EEOC charges until United’s abolition of the rule.
Unlike the relevant subclass of plaintiffs in Zipes, all
members of the class in the instant case have a timely
EEOC charge upon which to rely. To penalize them for
not having individually filed EEOC charges would be con-
trary to the well established rule that individual, timely
filings are not essential to a class action. We therefore
reject United’s argument insofar as it rests on the prem-
ise that class members were remiss in not filing individual
EEOC charges.

The third prong of United’s argument is based on Ford
Motor Co. v. EEOC, —— U.S. ——, 102 S.Ct. 3057, 73
L.Ed.2d 721 (1982). In that case, several women were
denied employment at Ford. An EEOC charge was filed.
Two of the women obtained other employment. Ford then
offered each of them the position that had previously been
wrongfully denied. Ford made no offer of retroactive sen-
iority to the date of original hire. Reversing the Fourth

36a

Circuit, the Supreme Court held that, absent unusual cir-
cumstances, an employer’s unconditional offer of the job
previously withheld ends the accrual of potential back pay
liability.

United relies on Ford, by broad analogy, for the propo-
sition that the failure of the plaintiffs to seek available
rehire by United weighs the equitable balance in favor of
the airline. We are not persuaded that Ford has relevance
to the present case. Not only does this appeal not involve
issues of back pay, but more importantly, it is not a case
in which United unconditionally offered employment to
any of the flight attendants who had left during the era
of the no-marriage rule. United’s “offer” was no more
than a statement, in its publicity aimed at potential flight
attendants, to the effect that priority would be given to
applicants who had previously worked in positions involv-
ing “customer service.” This is obviously something short
of an unconditional offer of employment made directly to
the victim of discrimination. Further, although the
former flight attendants may have known that United had
abandoned its no-marriage policy and may have known
that they would be given hiring preference if they re-
applied, neither of these facts is established in the record.
We therefore conclude that Ford has little relevance to
this case.

We conclude that the district judge did not abuse his

37a

economic impact on the airline could not be considered
“unusually adverse.” Although a greater measure of non-
competitive than competitive seniority was awarded, the
district judge sought to insure that each type of seniority
relief was the maximum measure that would not result
in “unusual adverse impact.” We find no abuse of dis-
cretion, under Franks, in this approach.

V. DENIAL OF INJUNCTIVE RELIEF

In August, 1982, United indicated that on October 1,
1982, it would recall 175 furloughees. The class petitioned
for a stay of the recall. The class proposed that plaintiffs
with greater days-of-service seniority (the measure of
competitive seniority awarded by the district court)

should be recalled instead of the incumbent furloughees or,
alternatively, that action such as denying the recalled
furloughees the accrual of competitive seniority should
be ordered to prevent deterioration of the class’ competi-
tive position. The district judge did not grant the sought
relief and, according to the class, abused his discretion in
so doing.

We find no abuse of discretion in the district judge’s
refusal to require that claimants be recalled in place of
incumbent furloughees because, absent the results of any
class membership hearings at that time, it would have
been impossible to know if the claimants recalled would
ultimately be found to be members of the class.

We similarly find that the district judge did not abuse
his discretion in refusing to order that recalled fur-
loughees be denied the accrual of competitive seniority.
Such a denial would be contrary to the terms of the col-
lective bargaining agreement between United and the
AFA, and, absent any assertion of illegality in that agree

ment or an assent to the denial of competitive seniority, —

the district court lacked power to alter the terms of the

5 See Myers v. Gilman Paper Corp., 544 F.2d
837 (7th = 1977), amended and modified on

38a

grounds, 556 F. 2d 758, cert. dismissed, 434 U.S. 801, 98
S. Ct. 28, 54 L.Ed.2d 59.

Two other forms of relief suggested by the class per-
tained to the granting of extra competitive seniority to
claimants in light of the recall. The district judge de-
clined to rule on these requests.

The first of the alternative suggestions was to permit
claimants with greater seniority than the recalled fur-
loughees to accrue competitive seniority from the date of
the recall. The primary difficulty that would arise if such
relief were granted is that if the 300 to 350 claimants
with greater competitive seniority than the most senior
furloughees were awarded this “extra” seniority, the re-
lief bears a limited relationship to the recall which
involved only 175 furloughees. If, on the other hand, the
extra seniority were awarded only the 175 most senior of
the claimants, the possibility exists that the beneficiaries
of this seniority grant would subsequently be determined
not to be members of the plaintiff class.

The second of the alternatives suggested by the class
was to permit all claimants to begin accruing competitive
seniority from the date of the recall or from the date of

of this extremely complicated case sought to grant class

declining
merely because 175 furloughees were recalled.

balance
Although we find no abuse of discretion in the district
court’s failure to alter at this time the seniority remedy

89a

granted, we are cognizant that many variables remain in
this case. If the economic conditions affecting United,
conditions that are largely responsible for the finding of
“unusual adverse impact,” take a drastic turn for the
better and numerous furloughees are recalled, or if the
class determination hearings stretch on for longer than
anticipated, it is possible that the district judge will need
to make adjustments as to when class members begin
accruing competitive seniority. Nothing in this opinion,
of course, precludes the district judge from ordering such
additional relief upon a showing that modification of the

original order is required.

CONCLUSION
Having considered all the arguments urged by the
parties and intervenors on this appeal, for the reasons
stated in the foregoing opinion, the judgments of the
district court regarding the appropriate measure of senior-
ity relief and the denial of injunctive relief are

AFFIRMED.

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UNITED STATES COURT OF APPEALS
For the Seventh Circuit
Chicago, Illinois 60604

(Title Omitted in Printing)

September 21, 1983

JUDGMENT—ORAL ARGUMENT

This cause was heard on the record from the United
States District Court for the Northern District of Illinois,
Eastern Division, and was argued by counsel.

On consideration whereof, IT IS ORDERED AND AD-
JUDGED by this Court that the judgment of the said
District Court in this cause appealed from be, and the
same is hereby, AFFIRMED, with costs, in accordance
with the opinion of this Court filed this date.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_1441%3A2. Public record. Not legal advice.
