Affirmed by published opinion. Judge WILKINSON wrote the opinion, in which Judge KING and Senior Judge HAMILTON joined.
OPINION
This case involves an effort by a union of airline pilots to use the Railway Labor Act (“RLA”), 45 U.S.C. §§ 151 et seq., to compel several airlines, the airlines’ holding company, and another union to establish and arbitrate before a multi-employer, multi-union board of adjustment. We hold, however, that plaintiffs claim is foreclosed by the plain language of Section 204 of the RLA, id. § 184, which permits but does not require such a board of adjustment, and that plaintiffs alternative state law claim is meritless. Accordingly, we affirm the district court’s dismissal of the complaint.
I.
The plaintiff, the Air Line Pilots Association (“ALPA”), is a labor organization that represents various pilots in collective bargaining. The defendants in this case
Starting about 1997 and ending around 2004, the plaintiff, on behalf of Airways, Piedmont, and PSA pilots, negotiated a number- of collective bargaining agreements that form the basis of the instant dispute. No agreement was ever signed by all parties. The plaintiff nonetheless characterizes the set of contracts as complex and interlocking, such that their net effect is to somehow involve all the defendants in a scheme entitling PSA and Piedmont pilots to preferential rights to job vacancies at Airways. These rights are referred to as “flow-through” rights.
In 2007, a dispute erupted over the alleged flow-through rights, which plaintiff claims the defendants violated. Several rounds of discussions failed to resolve the matter, and the parties were unable to agree on the proper format for arbitration. Consequently, in early 2009, the plaintiff brought suit in the Eastern District of Virginia.
Both parties agree that the plaintiff is not seeking a determination on the merits of the flow-through dispute. It instead is seeking injunctive and declaratory relief to compel resolution of the dispute through arbitration. The plaintiff contends further that effective resolution of the dispute requires arbitration before a multi-carrier, multi-union adjustment board — i.e., one with jurisdiction over the plaintiff, the defendants, and USAPA. The defendants, on the other hand, contend that they have fulfilled their statutory duty by establishing single-carrier adjustment boards and that the plaintiff must present its grievance to those boards.
The complaint alleges two counts. First, plaintiff argues that two provisions of the Railway Labor Act (“RLA”) — Section 204, codified at 45 U.S.C. § 184, and Section 2 — First, codified at 45 U.S.C. § 152-First-independently require the defendants to create and participate in a multi-carrier, multi-union board. The second count is directed only at Group and alleges that Group is obligated to arbitrate under state contract law.
The defendants moved to dismiss the lawsuit,
see
Fed.R.Civ.P. 12(b)(6), and the district court granted the motion, dismissing the plaintiffs complaint in its entirety.
See Air Line Pilots Ass’n v. U.S. Airways Group, Inc.,
II.
The plaintiffs aim in this case is to compel arbitration before a multi-employer, multi-union board of adjustment. It is undisputed that in the airline industry, the RLA makes “minor” disputes, which are disputes over the interpretation of collec
A.
Plaintiff contends that construing Section 204 to leave group boards to the election of the parties would frustrate two of Congress’s goals in enacting the RLA. First, according to the plaintiff, it would undermine the longstanding federal policy that “favors arbitration of labor disputes.”
Lynchburg Foundry Co. v. Patternmakers League,
Such general propositions, however, fail to account for the specific instructions of Congress in this context. It is a cardinal rule of statutory construction that we begin with the text of the statute itself and must “assume that the legislative purpose is expressed by the ordinary meaning of the words used.”
Am. Tobacco Co. v. Patterson,
The disputes between an employee or group of employees and a carrier or carriers by air growing out of grievances, or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions ... may be referred by petition of the parties or by either party to an appropriate adjustment board, as hereinafter provided
It shall be the duty of every carrier and of its employees ... to establish a board of adjustment
Such boards of adjustment may be established by agreement between employees and carriers either on any individual carrier, or system, or group of carriers by air and any class or classes of its or their employees....
45 U.S.C. § 184.
The meaning of this statutory language is clear. It states that an air carrier and its employees
“shall ...
establish a board of adjustment” but that such a board of adjustment
“may
... by
agreement ”
con
In construing statutory terms in accordance with their “ordinary or natural meaning[s],” as we must,
FDIC v. Meyer,
That the word “may” is to be given a meaning distinct from the word “shall” is further bolstered by Congress’s use of both words in close proximity to one another, signaling that the contrast was not accidental or careless. As the Supreme Court stated, the permissive nature of the word “may” is “particularly apt where, as here, ‘may’ is used in contraposition to the word ‘shall.’ ”
Jama v. Immigration & Customs Enforcement,
This commonsense reading of Section 204 conforms with the remaining text, ensuring that the phrase “by agreement” is not rendered superfluous.
See Corley v. United States,
— U.S. -,
As the district court further noted, “[t]he import of these [statutory] phrases is clear: air carriers and their employees have a statutory duty to establish boards of adjustment, but if they wish to create (and bear the expense of) multi-carrier boards of adjustment, they must contract to do so.” Because the statutory language does not admit of doubt as to Congress’s intended meaning, it must be regarded as conclusive. .
See Nelson v. Piedmont Aviation, Inc.,
Congress was plainly within its rights to combine the virtues of arbitration with the virtues of collective bargaining. It determined simply that an arbitral forum was required, with the parameters of that forum being left to voluntary agreement.
See
45 U.S.C. § 184. Collective bargaining is not restricted to substantive disputes but may encompass the forum in which those disputes are to be resolved. As the Supreme Court has stated, “arbitration of labor disputes under collective bargaining agreements is part and parcel of the collective bargaining process itself.”
United Steelworkers v. Warrior & Gulf Navigation Co.,
In making group adjustment boards creatures of contract, Congress relieved federal courts of the burden of delineating what a group adjustment board would or should look like: How many arbitrators would be on the board? How would the arbitrators be chosen? What rules or procedures would they follow? Congress allocated that task to the parties, allowing them to hash out the specifics through negotiation. If experience shows this process to be somehow deficient, the remedy is a legislative one. Indeed, plaintiff can point to no case where courts have stepped in to award the type of relief sought here.
B.
Plaintiffs Section 204 claim faces yet another hurdle. Plaintiff seeks to use the provision to compel
Growp
to participate in multi-party arbitration. Because Group is simply a holding company of three airlines and does not itself perform
But this argument too is overcome by Section 204’s plain text, which does not, by its terms, impose any duties on “agents.” See 45 U.S.C. § 184. By not expressly including agents within its scope, Section 204 contrasts with other RLA provisions that do expressly cover “agents,” see, e.g., id. § 152-First, thus suggesting that the omission was not a congressional oversight. As the district court observed, “Congress knew how to place agents within a statutory provision when it wanted to' — as evidenced by Section 2, First — and thus its decision to exclude agents from Section 204’s command must be respected.”
C.
Plaintiff counters the above with a textual point of its own: the sentence in Section 204’s first paragraph, which states that disputes “may be referred ... to an appropriate adjustment board, as hereinafter provided.”
Id.
§ 184. Under plaintiffs interpretation of this language, air carriers and their employees are required to establish a multi-carrier, multi-union board whenever it is “appropriate.” Clearly, in plaintiffs view, a multi-carrier, multi-union board of adjustment is “appropriate” when, as here, it is necessary to resolve the “entire dispute ... in a single proceeding.”
Transp.-Commc’n Employees Union v. Union Pac. R.R. Co.,
Plaintiffs position, however, is once again in tension with a fundamental canon of statutory interpretation. “[I]t is a commonplace of statutory construction that the specific governs the general.”
Morales v. Trans World Airlines, Inc.,
In this regard, plaintiffs reliance on
TCEU
is misplaced. That case had nothing to do with whether a Section 204 board of adjustment was “appropriate.” In fact, it had nothing to do with the creation of a board of adjustment at all. The case dealt with arbitration in the rail industry in an already-existing forum that indisputably had jurisdiction over a party.
TCEU,
D.
Plaintiff claims finally that group boards are mandated in the airline industry under Section 204 because they are mandated in the railroad industry under Section 3-First. That section allows railroads and
This view, however, overlooks the statutory language and, moreover, it overstates Central Airlines. These sources make abundantly clear that although Congress may have intended the dispute resolution machinery to be roughly similar for the air and rail industries, it did not intend for them to be perfectly identical. Indeed, quite the opposite.
Section 3-First of the RLA applies only to the railroad industry. As plaintiff correctly points out, it establishes the NRAB, a national board of adjustment composed of numerous rail carriers and unions, with such jurisdiction over those parties as is necessary to decide disputes through arbitration. See 45 U.S.C. § 153-First. The remainder of Section 3-First carefully delineates the composition, functioning, and rules of the NRAB. Id.
In the airline industry, there is no comparable provision to Section 3-First. There is nothing that establishes a national board of adjustment made up of numerous air carriers and pilots’ unions. In fact, in extending the RLA to air carriers, Congress specifically decided not to create a national board. Instead, Congress included a provision that authorized the National Mediation Board to establish the National Air Transport Adjustment Board (“NA-TAB”) when and if in its judgment such a body became necessary. See id. § 185. Section 205 states:
When, in the judgment of the National Mediation Board, it shall be necessary to have a permanent national board of adjustment in order to provide for the prompt and orderly settlement of disputes between said carriers by air, or any of them, and its or their employees, ... the National Mediation Board is empowered and directed ... to ... constitute a board which shall be known as the “National Air Transport Adjustment Board.”
Id. To date, the NATAB has not been established.
This view is entirely consistent with the Supreme Court’s holding in
Central Airlines. Central Airlines
recognized that there was a “significant variation” between the rail industry and the airline industry: With regard to the airline industry, Congress deliberately chose to delay indefinitely the creation of a national adjustment board.
Int’l Ass’n of Machinists v. Central Airlines, Inc.,
If the National Mediation Board believes that disputes in the airline industry have become too unruly for system, i.e., single-carrier, boards to handle, Section 205 expressly authorizes it to establish the NA-TAB and alleviate for the entire industry any problems associated with system boards. 45 U.S.C. § 185. Once established, the NATAB may adjudicate any disputes “if any system, group, or regional board of adjustment ... is not satisfactory to [air carriers or their employees].” Id Moreover, like Section 204, Section 205 eliminates the need for courts to direct the board’s operation, because Section 205 sufficiently outlines the NATAB’s procedures and functioning, including the number of its members, the method for adopting its procedures, and the parameters of its jurisdiction. Id
In light of Congress’s clear decision to postpone the creation of a multi-employer, multi-union board in the airline industry, courts can hardly hasten the day by invoking some generalized notion that identical procedures extend to the employees of every transportation sector. 2
III.
Finally, we consider the plaintiffs effort under Virginia state law to require Group to arbitrate. Specifically, plaintiff alleges that Group made binding commitments to arbitrate in several collective bargaining agreements and that its refusal to arbitrate therefore constitutes breach of contract. As an initial matter, we note that the defendants, and even the plaintiff itself, raise the real possibility that this state law claim is preempted by the federal law requirements of the RLA.
See Hawaiian Airlines, Inc. v. Norris,
A.
Plaintiff first argues that Group has a contractual commitment to arbitrate under Letter of Agreement 8 (“LOA 8”), an agreement entered into by PSA and ALPA but not by Group. Section 9 of LOA 8, entitled “Dispute Resolution Procedures,” subjects a limited category of disputes to
Plaintiff argues that Group is nonetheless bound to arbitrate under LOA 8 because a later paragraph of Section 9 allows Group, along with ALPA, to play a role in the selection of an arbitrator, providing: “Group and ALPA may each sequentially strike a name from this list [of potential arbitrators] and the remaining neutral shall hear and decide the dispute.” It would be novel indeed, however, to hold that such a selection provision somehow bound Group to arbitrate when it never even signed the agreement and was never listed as a party to arbitration. Accordingly, we hold that Group has no contractual duty to arbitrate under LOA 8.
B.
The plaintiff also contends that Letter of Agreement 50 (“LOA 50”) binds Group to arbitration. This brief, three-paragraph letter was signed in 1997 by Group, Airways, and ALPA and references “Section 1” of another collective bargaining agreement involving Airways and ALPA, which the plaintiff alleges created the flow-through rights. The relevant sentence of LOA 50 states that “any disputes between ALPA and [] Group and/or [] Airways which arise out of grievances or out of interpretation or application of this letter or Section 1 of the Agreement will be subject to determination through final and binding arbitration ... before the ALPA- [ ]Airways Pilots’ System Board of Adjustment.”
This single statement in LOA 50, however, does not warrant the extraordinary relief that the plaintiff seeks. To begin, LOA 50 is limited to disputes arising under the letter itself or Section 1 of a collective bargaining agreement, both of which were entered into by ALPA on behalf of the pilots of Airways, and not on behalf of the pilots of Piedmont or PSA, on whose behalf it now brings this lawsuit. The value of LOA 50 for the Piedmont and PSA pilots in this case is therefore dubious.
See Fairbairn v. United, Air Lines, Inc.,
C.
Finally, the plaintiff alleges that Group has an implied agreement to arbitrate, suggesting that Group’s conduct in entering into contracts subject to arbitration under the RLA evinces an intent to arbitrate the flow-through dispute here.
While some courts have found an agreement to arbitrate “implied from the party’s conduct,”
Gvozdenovic v. United Air Lines, Inc.,
IV.
Arbitral obligations are important, but they do not arise from thin air. The duty
AFFIRMED.
Notes
. Contrary to plaintiffs suggestion, the voluntary nature of multi-party boards is not called into question by Section 2-Second or Section 2-Sixth. 45 U.S.C. § 152-Second & Sixth. We need not resolve the parties' vigorous dispute over what these provisions do or do not require, because even if plaintiff is correct that they demand pre-arbitration conferencing with multiple carriers and multiple employees, there would be nothing irrational about a regime that called upon parties to discuss their disputes in group conferences but allowed them to decide for themselves whether to arbitrate separately or together.
. Plaintiff also invokes the "duty [on] all carriers, their officers, agents, and employees to exert every reasonable effort to ... settle all disputes” under Section 2-First. 45 U.S.C. § 152-First. The plaintiff claims that participating in the establishment of a multi-party adjustment board to resolve a multi-party dispute is a requisite "reasonable effort” within the meaning of Section 2-First. The general duty of Section 2-First, however, may not displace the more specific requirements of Section 204. Section 204 is the most precise provision governing the establishment of adjustment boards in the airline industry, and the general duty articulated in Section 2-First therefore may not supplant its specific dictates.
Moreover, the parties did in fact negotiate over the potential creation of a group adjustment board. After the flow-through dispute began, the parties bargained back and forth for awhile; the plaintiff proposed the idea of a group board; the defendants expressed a number of concerns over it, including a worry about the inability of the two unions to present a unified position; and ultimately, the negotiations did not produce a group board. The simple fact that the parties did not produce a group board is not tantamount to bad faith. A "reasonable effort” does not, ipso facto, necessitate the creation of a multi-employer, multi-union board of adjustment. Mandating such boards as a matter of law under Section 2-First would fly in the face of Section 204's plain text, which contains no such requirement.
