Unions to fight war-related layoffs at US airlines Tuesday March 25, 4:13 PM EST By Meredith Grossman Dubner CHICAGO, March 25 (Reuters) - U.S. airlines are using the war with Iraq as legal justification for thousands of layoffs, setting off fights with unions that could drag on for months or even years, industry and legal experts said on Tuesday. Airline labor agreements contain loopholes, called "force majeure" clauses, that give carriers flexibility to lay off workers without adhering to strict seniority provisions during unexpected crises. The literal translation of the French term force majeure is "greater force." The phrase typically applies to natural disasters or other "acts of God," "national emergency" or war, or other circumstances that cannot be anticipated or controlled. But wording varies in each contract and leaves a lot up to interpretation, according to labor law experts. Most airlines used these clauses in cutting jobs after the Sept. 11 attacks and some disputes have yet to be resolved. UAL Corp.'s (UAL) United Airlines and Northwest Airlines Corp. (NWAC) both invoked force majeure last week in layoffs announced after the Iraq war began. The Air Transport Association, the airlines' main trade group, has predicted an Iraq war would result in 70,000 job losses on top of the 100,000 since Sept. 11, 2001. By invoking force majeure, airlines are freed from obligations to give notice or severance pay to employees, or to maintain minimum numbers of workers agreed to in contracts, union leaders said. "Most arbitrators would see the Iraq war as a justified use of the clause, that exercising a force majeure was a reasonable business decision," said John Harper, a labor and employment attorney at Fulbright & Jaworski in Houston. GOOD FAITH IN QUESTION But unions do not think the situation is that clear cut. Unions at bankrupt United said they were told last week the carrier plans to put 2,300 flight attendants on unpaid leave April 1 and 1,148 mechanics on unpaid leave starting March 25. United cut 8 percent of its flights, but has not said how many workers will be furloughed. A spokesman for the International Association of Machinists said union lawyers were reviewing United's actions to determine if they would seek a court injunction to block the layoffs. Northwest said last week it would trim 12 percent of its flights and cut 4,900 jobs, or about 11 percent of its staff. Spokesman Kurt Ebenhoch said part of the layoffs would come through use of force majeure. "As part of our collective bargaining agreements, we are permitted to invoke force majeure," Ebenhoch said. The top U.S. carriers, which lost nearly $20 billion in the last two years, are desperately seeking ways to cut costs as demand for air travel falters. The precarious situation of the industry before the Iraq war further muddies the legal picture and adds to worker distrust of management, experts said. "(The airlines) don't want to leave the impression that they're using the war as an excuse to do things they wanted to do," said George Hopkins, a professor at Western Illinois University, who wrote a book on the Air Line Pilots Association. "That would just poison relationships with (labor) if management were seen to be using the war ... as a subterfuge." The Allied Pilots Association, which represents 13,500 American Airlines pilots, filed two grievances when the carrier cited force majeure to cut workers after Sept. 11, spokesman Gregg Overman said. In one case, an arbitrator ruled in favor of the airline. The second case has not yet been settled. American, a unit of AMR Corp. (AMR), recently said it would cut its international schedule by 6 percent and may also reduce domestic flights due to the Iraq war. CEO Don Carty noted in a meeting with employees last week that while force majeure was invoked by many airlines after Sept. 11, it was still "premature" to use the clause with regard to Iraq. NO EASY ANSWERS The events that have plagued the airline industry from Sept 11 until now could add up to a collective force majeure, suggested James Walters, a labor and employment attorney at Fisher & Phillips LLP in Atlanta. "The industry has been reeling for the last 18 months," Walters said. "There are number of interrelated factors that spell bad economic times for the nation's airlines." Other labor law experts, though, said arbitrators would have to consider whether events materially changed with the Iraq war to justify use of force majeure clauses. Even then, invoking force majeure may not be the best strategy because it could alienate unions at a time when many carriers need labor to agree to wage concessions and work rule changes. "They may certainly have the legal right to lay off people immediately under the clause, but whether that's the best move diplomatically is questionable," Harper said. Delta Air Lines Inc. (DAL) cut 12 percent of its flights due to the war, but a spokeswoman would not say whether the cutbacks would results in layoffs. Continental Airlines (CAL) said right before the war started that it would cut 1,200 jobs by year-end. Roger EWROPS