PrimeFlight Aviation Services Basics
Transcription
PrimeFlight Aviation Services Basics
PrimeFlight Aviation Services Basics PrimeFlight is a Nashville-based company that contracts with airlines to provide ground handling, aircraft cleaning, and terminal/passenger services.i PrimeFlight is a subsidiary of SMS Holdings, a privately held company that also provides janitorial, security, and other services.ii PrimeFlight has approximately 5,000iii employees at 44 airports nationwide, and estimated annual revenue of $30 million.iv Regional Presence According to a September 2014 City of Philadelphia Right to Know Request, PrimeFlight has 443 badges at Philadelphia International Airport. PrimeFlight workers provide skycap, baggage, wheelchair and customer services for American Airlines, US Airways, Lufthansa, and other airlines. According to a July 2014 Port Authority of NY and NJ Freedom of Information Request, PrimeFlight has 635 employee badges at Newark Liberty International Airport.v PrimeFlight workers serve as skycaps, wheelchair attendants, baggage handlers, and cabin cleaners. At Newark Liberty International Airport, PrimeFlight services American Airlines, United, and US Airways.vi According to a July 2014 Port Authority of NY and NJ Freedom of Information Request, PrimeFlight has 545 employee badges at LaGuardia Airport.vii PrimeFlight workers providing skycap, wheelchair services, cabin and terminal cleaning, baggage handling, and customer services for American, AirTran, and US Airways and other airlines.viii Health and Safety PrimeFlight has a track record of health and safety citations, across multiple locations: In 2010, PrimeFlight paid $750 to settle 4 OSHA health and safety citations at San Diego and paid another $700 for an OSHA citation at SeaTac in 2013ix. In October 2011, a Newark Liberty International Airport PrimeFlight employee sued the company, claiming that she suffered serious injuries after the company vehicle she was riding in crashed into a pole.x The employee alleges that the van was driven by a worker who was not licensed to operate such a vehicle and/or had no experience in driving such a vehicle upon the road or tarmac of the airport. PrimeFlight denied the allegations. The case remains open as of November 18, 2014, with hearing scheduled for December 5, 2014.xi Wage and Hour PrimeFlight has a troubling history of wage and hour claims and paying large settlements regarding its employees at airports across the country.xii Since 2005, total settlements, back wages, and penalties for these violations (including one pending settlement) exceed $1.4 million. Many of these employee wage and hour disputes have taken place at airports in the New York metro area: PrimeFlight recently agreed to a $605,503 settlement in a wage and hour class action lawsuit brought by a former LaGuardia Airport porter on behalf of tipped PrimeFlight employees in New York State. The proposed joint settlement was approved by the U.S. District Court for the Eastern District of New York (Brooklyn) on October 9, 2014. In this case, initially filed October 3, 2011, the former employee alleged that he and other workers were not paid time and a half for overtime, were not informed that the company was applying a tip credit to their wages, were forced to report $60 per week in tips regardless of what they earned, and were not paid a required uniform maintenance payment.xiii The settlement affects over 1,000 current and former PrimeFlight employees at LaGuardia Airport.xiv In December 2005, a Newark Liberty International Airport cabin cleaner filed a wage and hour complaint after PrimeFlight paid him at a lower rate than his normal rate for his vacation. The cleaner claimed to have asked PrimeFlight several times to correct his check, but the discrepancy was never addressed.xv The New Jersey DOL ordered PrimeFlight to pay over $670 in back wages and was assessed a $500 penalty.xvi In April 2008, the New Jersey DOL ordered PrimeFlight to pay nearly $200 in back wages to a Newark Liberty International Airport cabin cleaner for failure to pay vacation time.xvii In October 2010, following an investigation by the U.S. Department of Labor, PrimeFlight agreed to pay back wages of more than $5,700 to 74 LaGuardia Airport employees for failure to properly pay overtime.xviii In 2011, a worker at Newark Liberty International Airport filed a complaint over PrimeFlight’s failure to pay him for hours worked. PrimeFlight was subject to an order from the New Jersey DOL to pay over $112 in back wages and incurred a $1,000 penalty. xix PrimeFlight has also been the subject of many wage and hour claims by its employees working at other airports: In 2008, PrimeFlight and US Airways were subject to a class action lawsuit brought in federal district court in Massachusetts on behalf of PrimeFlight skycaps providing services to US Airways who alleged that because skycaps were required to make up any negative difference between bag fees due and bag fees collected out of their tips that PrimeFlight could not take a tip credit on the skycaps wages and should have been paying them the full minimum wage. Although PrimeFlight denied the allegations, in 2009 it agreed to a $750,000 settlement that provided back wages and attorneys’ fees to a class of over 400 employees.xx In February 2008, over $2,600 in back wages was awarded to a skycap in Lexington, SC for failure to supplement tips that fell short of the minimum wage. xxi In April 2008, PrimeFlight negotiated a settlement of $2,850 on behalf of 19 employees in Nashville TN in response to a complaint that the company was failing to pay tipped employees the minimum wage and requiring them to report tips they hadn’t received. xxii Two PrimeFlight employees in Florida sued for unpaid overtime wages, unpaid minimum wages, and retaliation. One worker was allegedly terminated after speaking out about unpaid wages. In June 2008, PrimeFlight settled with both workers for a total of $13,500 in back wages, liquidated damages and attorneys’ fees. xxiii In February 2009, following an investigation by the U.S. Department of Labor, PrimeFlight agreed to pay over $6,360 to 35 Byrd Airport (Richmond, VA) employees for failing to supplement passenger tips that were insufficient to meet minimum wage requirements for wheelchair skycaps and curbside skycaps, requiring employees to report more tips than they received, and paying incorrect overtime premium on several occasions.xxiv In September 2011, following an investigation by the U.S. Department of Labor, PrimeFlight agreed to pay over $10,400 in back pay to 43 of its employees working the Rochester Airport whose tips did not bring them up to the minimum wage. PrimeFlight was also assessed over $23,000 in civil penalties, though it’s not clear whether the DOL ever collected the penalty.xxv In September 2012, following a U.S. Department of Labor investigation, PrimeFlight agreed to pay over $33,000 in back wages to 53 employees working at the Buffalo International Airport for failure to properly pay minimum wages.xxvi A Department of Labor investigation in El Paso, Texas of SMS Holdings, PrimeFlight’s parent company, found that 34 employees were owed more than $15,400 for failure to comply with minimum wage and overtime law.xxvii Public Subsidies Since 2008 as part of the Work Opportunity Tax Credit Program, PrimeFlight was certified by the New Jersey Department of Labor to receive federal tax breaks for more than 230 workers hired in New Jersey. The Work Opportunity Tax Credit is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.xxviii Assuming the maximum allotment for each employee was received and that each certified employee worked with PrimeFlight for two years, PrimeFlight could have received as much as $1.3 million in federal tax breaks. xxix PrimeFlight’s recruitment is subsidized by the New York City Small Business Services division. xxx NYC SBS provides recruiting and screening services free of charge to businesses in NYC.xxxi The NYC Small Business Services estimates an average savings of $720 per person hired.xxxii Using this estimate, and assuming the company hired the employees referred by the state agency, PrimeFlight could have received as much as $22,000 in savings from using NYC SBS’ WorkForce1 Centers in 2012. PrimeFlight also received a training grants fund from NYC Small Business Services for more than $17,000.xxxiii PrimeFlight has received recruitment services from One-Stop Centers in New Jersey. One-Stop Centers provide recruiting and screening services free of charge to businesses in NJ.xxxiv The NYC Small Business Services estimates an average savings of $720 per person hired.xxxv Using this NYC-based estimate as guide, and assuming the company hired the employees referred by the state agency, PrimeFlight could have received as much as $97,000 in savings from using New Jersey’s One-Stop Centers in 2012 and 2013.xxxvi Passenger Safety US Airways recently agreed to pay $1.2 million civil penalty under a consent order with the Department of Transportation after the DOT found that the carrier failed to provide adequate wheelchair assistance to disabled passengers in Philadelphia and Charlotte, North Carolina.xxxvii Passengers requiring wheelchair assistance flying on airlines that contract with PrimeFlight have alleged injuries while in the care of PrimeFlight. Some examples include: A passenger sued American, who in turn sued PrimeFlight, relating to an incident when she was traveling from New York to Chicago in December 2005.xxxviii She alleged in her complaint that she needed wheelchair assistance because she was unable to walk or stand for long periods of time. She claimed that when boarding the plane, she was told to get out of the wheelchair and walk through the final portion of the jet bridge, at which point she fell. She claims to have suffered serious personal injuries to her back, requiring surgery and aggravation to prior knee injuries.xxxix PrimeFlight and American denied all negligencexl and the case was settled out of court in 2009. xli A retired U.S. Air Force veteran, who is quadriplegic from multiple sclerosis, brought a lawsuit against American Airlines and PrimeFlight regarding a flight from Dallas, Texas to Dayton, Ohio in May 2003. She claims that while being assisted off the plane, she was not adequately strapped into her wheelchair and while being pushed, she tumbled out of the chair and struck the floor and/or seats, causing severe personal injuries including spinal fractures, numerous cuts and serious bruises.xlii The passenger brought a suit against American Airlines and PrimeFlight, both of whom denied all allegations.xliii The case was settled out of court in 2006.xliv i A 90 year old woman who was flying with her daughter from Philadelphia to Dallas on American Airlines in 2009 brought a lawsuit against PrimeFlight and American after allegedly sustaining injuries while getting into a PrimeFlight wheelchair. The woman alleges that she used a walker to exit her vehicle and fell while attempting to get into the wheelchair which was placed on an incline and not secured. Her fall allegedly required hospitalization and caused permanent injury.xlv Both PrimeFlightxlvi and Americanxlvii denied the allegations, and American initiated a third party complaint against the woman’s daughter alleging that it was her negligence that caused the incident.xlviii The case was settled out of court in 2010.xlix A woman required wheelchair assistance while flying from Houston to Washington DC in 2009. In the course of providing boarding assistance in Houston, a PrimeFlight employee allegedly pushed her chair at an unsafe speed causing her to fall from the chair when it hit a bump. She sued PrimeFlight, alleging injuries due to PrimeFlight’s negligence that required hospitalization once she arrived in DC.l The case was settled out of court in 2012.li http://primeflight.com/services/ http://smsholdings.com/index.php/companies/ iii http://smsholdings.com/index.php/companies/primeflight/ iv Hoover’s profile, 2012, page 5. v Port Authority of New York and New Jersey Badging data from October 2013. vi SEIU Local 32BJ Staff Observations vii Port Authority of New York and New Jersey Badging data from October 2013 viii SEIU Local 32BJ Staff Observations ix 1 serious violation with a $700 fine: https://www.osha.gov/pls/imis/establishment.inspection_detail?id=316772029 4 violations (other) with a $750 fine reached through informal settlement: https://www.osha.gov/pls/imis/establishment.inspection_detail?id=312682735 x Marie Montsanto vs. PrimeFlight Aviation Services, Inc., Essex County Court Docket # L 008550 11 Complaint for Jury Demand, Demand for Answers to Form Interrogatories Demand for Discovery, page 3. xi Ibid, Case proceeding list xii FOIAs pending for Philadelphia state-level wage and hour charges for PrimeFlight and other SMS subsidiaries, FOIAs are also pending for NY and NJ for other SMS subsidiaries, and for PrimeFlight and other SMS subsidiaries for PF and all other subsidiaries. xiii Fernandez v. PrimeFlight Aviation Services, Inc., et al, No. 1:11-cv-04862-KAM-CLP (E.D. NY), Amended Complaint, see pages 1-3 xiv Ibid, Memorandum of Law in Support of Plaintiff’s Motion for Preliminary Approval of Settlement, see pages 8-10. xv State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE240-0106-SAN xvi State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE240-0106-SAN xvii State of New Jersey Department of Labor and Workforce Development Government Records Request, PrimeFlight Aviation Services Inc., WC-1698-1007-SAN xviii US DOL case ID: 1577742, NYC District Office, received via September 30, 2013 FOIA. xix State of New Jersey Department of Labor and Workforce Development Government Records Request, Prime Flight Aviation Services, GE2957-1011-REY xx Mitchell et al v. US Airways, Inc. et al, No 1:08-cv-10629-WGY (MA) Plaintiff’s Motion for Final Approval of Class Action Settlement with Defendant Prime Flight Aviation Services, Inc., see pages 1-3. xxi US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page 4 xxii US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page 3 xxiii Ines Herrera vs. PrimeFlight Aviation Services, Inc. “Settlement Agreement” Exhibit A-1, A-B, 0:08-cv-60097-DTKH xxiv US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1538615, page 2 xxv US DOL case ID: 1603421, received via September 30, 2013 FOIA. xxvi US DOL case ID: 1631048, Albany NY District Office, received via September 30, 2013 FOIA. xxvii US Department of Labor Wage and Hour Division Government Records Request, PrimeFlight Aviation Services, Inc. Case ID: 1505162, page 1 xxviii United Stated Department of Labor Employment and Training Administration website: http://www.doleta.gov/business/incentives/opptax/, Accessed 10/16/2013 ii xxix Calculation derived from information received via a New Jersey Department of Labor Workforce Development Division Freedom of Information Request received August 27, 2013. Request Number W79365. For each WOTC employee certified in the “I” category, a maximum tax credit is $4,000 per year for the first year and a maximum of $5,000 for the second year. For all other WOTC employee certification categories, the maximum tax credit is up to $2,400 a year, for two years. In 2013, there was 1 certification; in 2012 there were 11 certifications; in 2011 there were 25 total certifications: 21 certifications and 4 “I” certifications; in 2010 there were 20 total certifications: 15 certifications and 5 “I” certifications, in 2009 there were 102 total certifications: 94 certifications and 8 “I” certifications; in 2008 there were 80 total certifications: 60 certifications and 20 “I” certifications. . xxx SBS Freedom of Information Law Request, Correspondence #1-1-875402569, 10/9/2013. xxxi New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed 10/16/2013. xxxii New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed 10/16/2013 xxxiii SBS Freedom of Information Law Request, Correspondence #1-1-875402569, 10/9/2013. xxxiv New Jersey Department of Labor and Workforce Development Website: http://jobs4jersey.com/jobs4jersey/employers/findemp/, Accessed 10/16/2013. xxxv New York City Small Business Services Website: http://www.nyc.gov/html/sbs/nycbiz/html/summary/recruitment.shtml, Accessed 10/16/2013. xxxvi Open Public Records Act Request, OPRA – W79367 – PrimeFlight One Stop Career Centers, Prepared 9/18/2013. xxxvii Consent Order, Docket OST -2013-0004, Issued by the Department of Transportation on November 4, 2013, page 4. xxxviii Winslow v. American Airlines, Inc. et al, No. 2:07-cv-00236-MVL-KWR (E.D. La), Complaint (see pages 1-2) and Third Party Complaint. xxxix Ibid, “Petition for Damages,” page 1 and 2. xl Ibid, “Answer to Complaint,” page 2. xli Ibid, Order of Dismissal. xlii Reilly v. American Airlines et al, No. 3:05-cv-00213-WHR (S.D. Oh), Complaint, see pages 3-4. xliii Ibid, Answer of PrimeFlight and Answer of American Airlines. xliv Ibid, Entry of Dismissal by PrimeFlight and Submission of Dismissal by American Airlines. xlv Volk v. AMR Corp et al, No 2:09-cv-04634-WD (E.D. Pa), see Complaint filed in the Court of Common Pleas of Philadelphia County, pages 4-5. xlvi Ibid, Defendant PrimeFlight Aviation Services, Inc.’s Answer to Plaintiff’s Complaint with Affirmative Defenses xlvii Ibid, Defendant American Airlines, Inc.’s Answer, Affirmative Defenses, and Crossclaim. xlviii Ibid, Defendant American Airlines, Inc.’s Third Party Complaint Against Linda Baxter, see page 3-4. xlix Ibid, Dismissal Order l Coleman v. PrimeFlight Aviation Services Incorporated et al, No 4:11-cv-00733-FRZ (AZ), See complaint filed in the Superior Court of the State of Arizona in and For the County of Pima, pages li Ibid, Notice of Settlement.