Arbitrator sides with union claiming LAX People Mover subcontractor owes workers back pay

A subcontractor on the LAX Automated People Mover project owes a group of workers unpaid wages and benefits, according to a grievance filed by the union representing the workers.

An arbitrator held a hearing on the matter last December and formally sided with the union in his decision, which was released in March.

The International Union of Elevator Constructors, Local 18, had argued in a grievance filed in May 2025 that subcontractor Alstom Transport USA has been paying people who have been preparing train vehicles for passenger service and testing parts at a lower rate than what’s outlined in a labor agreement governing the project.

The union said in a statement to LAist that it is “satisfied” its claims were backed by the arbitrator and that the decision reflects the power of collective action.

The union added that this isn’t the end of the fight since Alstom has “already shown that they don’t intend to comply with the arbitrator’s award.”

The arbitrator noted in his decision there is some uncertainty as to how many workers would be affected since some of them were hired directly by Alstom and others through third-party firms. The union says there are 28 total workers who, regardless of how they were hired, should be compensated for their work and estimates Alstom owes them millions in wages and benefits.

A spokesperson for Alstom said it is “reviewing the arbitrator’s recommendations.”

“Alstom remains committed to reaching a fair and competitive wage and benefit package that recognizes the valuable contributions of our employees,” the spokesperson said.

LINXS did not respond to a request for comment.

Disputes in large-scale capital projects are not uncommon. This is one of many surrounding the Automated People Mover and not the only one to involve subcontractors working on the project. Earlier this year, LAist reported about how the main contractor, a group of companies called LINXS, is engaged in legal battles with two of its other subcontractors.

Another dispute between the city and LINXS has recently intensified and could also lead to litigation.

The project labor agreement

At the heart of this dispute is the collective bargaining agreement that sets wages for on-site construction work, establishes dispute procedures and ensures there won’t be work stoppages over labor issues on capital projects owned by Los Angeles World Airports, the city agency that oversees LAX. The project labor agreement was first forged in 1999 and, in 2020, the airport’s board renewed it for an additional decade.

LINXS agreed that it would be bound to the agreement and “shall require all of its subcontractors … to be similarly bound,” according to a copy of the arbitrator’s decision the union shared with LAist.

The union has claimed that the Alstom employees were doing work that is covered by the agreement and that they should be paid accordingly.

Alstom, according to communications cited in the arbitrator’s decision, said it never signed a document called a Letter of Assent, which formalizes a company’s obligation to follow the project labor agreement, and that, even if it did, its employees’ work isn’t covered.

The arbitrator’s decision

David Weinberg, the arbitrator, said the testing and commissioning work Alstom employees did is covered by the project labor agreement. Weinberg added that Alstom consented to abide by the agreement when it signed a contract to work with LINXS.

“Not signing the Letter of Assent does not absolve Alstom of its contractual obligations to LINXS or to the Union under the [Project Labor Agreement] due to the pass-through provision,” Weinberg wrote in his decision.

Weinberg said that the Alstom employees should get paid the national wage and benefits rate for the International Union of Elevator Constructors for any hours of work completed starting 60 days before the union filed its grievance. Weinberg also ordered Alstom to provide the hours of work completed on-site.

Weinberg said in his decision that if Alstom does not comply, LINXS would be on the hook, though for a smaller amount. LINXS would be liable to pay for any hours of work starting 60 days before Nov. 4, when it became a formal party to the grievance.