BEFOR E TH E U.S . DEPARTMEN T O F TRANSPORTATIO N

WASHINGTON , D C

Applicatio no f NORWEGIA N AI RINTERNATIONA L LIMITE D Docke tNo . OST-2013-020 4

fo ra nexemptio nimde r49 U.S.C . § 40109 an d aforeig nai rcarrie rpermi tpursuan tt o 49 U.S.C . § 4130 1 (US-E U Ope nSkies )

ANSWE RO F TH E AMERICA N FEDERATIO N O F LABO RAN D CONGRES S O F INDUSTRIA L ORGANIZATIONS , AN D TH E TRANSPORTATIO N TRADE S

DEPARTMENT , AFL-CI O T O DO T NOTIC E O F MOTIO N O n behal f o f th e America n Federatio n o f Labo ran d

Congres s o

f Industria l Organization s (AFL-CIO) , an d th e Transportatio n Trade s Department , AFL-CIO , w e writ e i n respons e t o th e writte n summar y o f th e Januar

y 8 , 201 4 U.S.-E U Join t Committe e meetin g as i t pertaine d

t o th e curren t

an d plaime d lon g hau l

operation s o

f Norwegia n Ai rShuttl e AS A (NAS ) an d its affiliate d

companies, Norwegia n Lon g Hau l A S (NLH) an d

Norwegia n Ai rInternationa l Limite d (NAI) . Th e AFL-CI O an d

TT D suppor t

th e comments file d

by th e Ai rLin e Pilots Associatio n (ALPA) , an d

w e refe ryo u t o th e analysis an d respons e t o eac h poin t made b y th e Europea n delegatio n detaile d i n ALPA' s filing . A s thos e comments discuss, th e DO T Summar y states tha t

durin g a closed-doo rsessio n o f th e Join t Committe e Meeting, th e Europea n delegatio n gav e th e Join t Committe e wha t

th e Summar

y characterize d

a s "som e detaile d

factua l information. "W

e d o no t believ e tha t

thi s characterizatio n accuratel y reflect s th e natur e o

f th e informatio n provide d b y th e Europea n delegation , a s th e informatio n is i n mos t case s no t detaile d o rno t factual , o rboth . Muc h o

f th e justificatio n bein g provide d fo rNAS/NLH/NA I

busines s model

, includin g thei r decisio n t o seeka n Ai rOperators Certificat e i n Irelan d rathe rtha n Norway , ha s onl ybee n recentl y presented. Furthermore , a s detaile d

i n th e ALPA filing , th e economi c claim s fo rbasin g lon g hau l operation s ou t

o f Irelan d see m t o b e insubstantial. Rather , w e believ e tha t

thes e claim s are merel

y par t o f a publicit

y campaig n designe d

t o distrac t th e genera l

publi c an d

federa l regulators fro m thei rtru e goa l an d purpose : t o avoi d Norway' s labo r

an d othe rsocia l

laws , evad

e thei rexistin g collectiv e bargainin g agreements, an d

t o undercu t

existin g U.S . an d

Europea n airline s an d thei rworkers . Perhap s th e mos t

troublin g thin g abou t

th e writte n summar

y is wha t i s wha t th e E U delegatio n di d

no t mention . Th e EU-U.S . Ai rTranspor t Agreemen t

(ATA ) includes , fo r th e firs t tim e ever

, a labo rarticl e designe d preven t a n agreemen t

fro m havin g advers e effect s o n aviatio n workers . Thi s provision . Articl e 1 7 bi s ("Socia l

Dimension") , states tha t "th e opportunitie s create d by th e Agreemen t

are no t intende d

t o undermin e labou r standard s o rth e labour-relate d

right s an d

principle s containe d

i n th e Parties 'respectiv e laws. "I t

furthe rstate s tha t

"th e principle s i n paragrap h 1 shal l guid e th e Partie s a

s the y implemen t

th e Agreement. "

Th e inclusio n o

f Articl e 1 7

bi s i n th e AT

A represente d

importan t

progres s i n ou rgloba l effor t to ensure tha t

market-openin g trade initiative s are no t use d t o har m goo d

job s an d undermin e labo rstandards , an d wa s praise d

b y bot h U.S . an d

Europea n negotiators . O n Marc h 25 , 201 0 Sii m Kallas , th e Europea n Commissio n Vic e Presiden t Responsible fo rTranspor t release d a statemen t

proclaimin g tha t

"Fo rth e firs t

tim e i n aviatio n history , th e agreemen t include s a dedicate d

articl e o n th e socia l

dimensio n o

f EU-U S aviatio n relations . Thi s wil l no t onl y ensure tha t

th e existin g lega l

right s o f airlin e employee s ar e preserved , bu t tha t th e implementatio n o

f th e agreemen t contribute s t o hig h labou rstandards." ' Despit e suc h a stron g statemen t supportin g hig h labors standard s an d worke r protections , th e Europea n delegatio n appear s t o b e walkin g awa

y fro m commitments the y agree d t o i n Articl e 1 7

bis . A t n o poin t i n th e writte n summar

y o f th e Europea n delegation's presentatio n wa s Articl e 1 7 bis mentione d

o rreferenced

. No rdoe s i t appea rtha t

th e Europea n delegatio n ha s factore d thi s articl e int o its determinatio n tha t th e U.S . DO T

shoul d gran t NA I a foreig n aircarrie rpermit .

' Europea nCommission , Offic eof th eVic ePresiden tfo rTransport . Breakthroug h i nEU-U S second stag e Ope nSkie s negotiations : Vice-Presiden tKalla s welcome s draf tagreement . Retrieve d from : http://europa.eu/rapid/press-release_IP-10-371_en.htm?locale=e nA s TT

D detaile d

i n its previou s filing , NATs intention s leav e littl e i n doubt . Its busines s mode l wa s develope d

explicitl

y t o evad e its collectiv e bargainin g obligation s i n its hom e countr

y an d Norwegia n labo r

laws , an d

i t is doin g s o usin g opportunitie s provide d by th e ATA . B

y basin g its crew s i n Thailan d an d employin g the m o n individua l

contract s governe d

by th e law s o

f Singapore, NA I

is clearl y underminin g labo rstandard

s o n bot h side s o

f th e Atlantic . Th e negotiators o

f th e ATA recognize d

tha t th e fac t tha t eac h Europea n signator y t o th e AT A ha s its ow n nationa l labo rla w migh t

entic e airline s t o "sho

p aroun d

fo ra bette r deal. "Articl e 1 7

bi s wa s include d

t o precisel

y t o preven t

thi s practice . Ye t

now , whe n N A I is attemptin g t o d o precisel y that , th e Europea n delegatio n appear s t o b e abandonin g th e principle s tha t guide d thei rnegotiations , an d walkin g awa

y fro m thei r commitments unde rth e agreement. Should NATs busines s plan s b e allowe d t o mov e forward

, w e believ e tha t

i t wil l set a devastatin g preceden t

tha t wil l hav e fa rreachin g implication s fo rth e globa l aviatio n industry , U.S . an d

Europea n airline s an d airlin e employees . NAT s applicatio n i s a critica l tes t cas e fo rho w th e U.S.-E U ai rservice s agreemen t wil l b e implemented

, an d whethe r th e Articl e 1 7

bi s labo rprotection s wil l b e enforce d

a s intended . W e believ e tha t

th e cas e presente d

by th e Europea n delegatio n a s detaile d

i n th e writte n summar y is fundamentall

y flawe d an d ignore s a crucia l

articl e i n th e ATA . I t

als o ignore d many seriou s question s tha t TT D an d othe r organization s hav e pose d i n regard s to th e NA I

busines s model . DO T should mak e clea rtha t

i t wil l no t ignor e th e A TA labo rarticle, an d

seekfurthe rinformatio n fro m th e Europea n delegatio n an d NA I abou t ho w the y wil l addres s th e seriou s labo rconcern s tha t w e hav e presented. W e appreciate you rconsideratio n o f ou rviews .

President , AFL-CI O President , TT D