PurduePete
Senior
- Jun 15, 2006
- 320
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For the second time in the span of a week, a federal judge overturned the ruling of a bankruptcy court (company friendly?) judge and denied Mesaba Airlines management the right to impose concessionary contracts on their employees...
http://www.aberdeennews.com/mld/aberdeennews/15517750.htm
Judge says Mesaba can't impose concessions on unions
MINNEAPOLIS - Mesaba Airlines, a regional feeder carrier for Northwest Airlines, can't impose concessions on its unionized workers, a federal judge ruled Wednesday.
U.S. District Judge Michael Davis ruled that U.S. Bankruptcy Judge Gregory Kishel erred in July when he granted the airline the authority to nullify existing labor contracts with its pilots, flight attendants and mechanics.
The unions appealed, and Davis concluded that that Mesaba didn't negotiate in good faith and that it failed a legal test requiring it to be "fair and equitable" in spreading around the pain of its bankruptcy restructuring.
Davis left Mesaba with two immediate options: liquidate or negotiate.
Mesaba President John Spanjers had warned Mesaba's 3,300 employees last week that they must reach deals quickly, otherwise the carrier would have impose cuts or stop flying.
In a statement Wednesday, Spanjers emphasized a desire to reach agreements with the three unions.
"While we are disappointed with Judge Davis' decision and will review all of our legal options to address his concerns, we are committed to successfully restructuring this company," Spanjers said. "What remains unchanged is the company's need to find a solution quickly to ensure the survival of the airline."
Mesaba said it has scheduled meetings with the three unions "to share detailed information about the company's cash position, which is quickly deteriorating."
Nick Granath, an attorney for the Aircraft Mechanics Fraternal Association, said negotiations were the way forward.
"We need to move from the court back to the bargaining table for real this time," Granath said. "This is not working for them to keep litigating this."
Mesaba filed for bankruptcy protection in Minneapolis last October and later asked its unions to accept labor cost cuts of 19.4 percent over six years. The unions have rejected such deep cuts, and Mesaba can't tap $24 million in debt financing unless it reaches its labor savings goal.
The pilots union has offered labor savings of 14 percent over three years.
"If the company cannot pay competitive rates to the employees who work here, we'll simply have to work someplace else," said Tom Wychor, chairman of the Mesaba pilots union.
Carla Rogat, vice president of the Mesaba flight attendants union, stressed that for the airline to be worth saving, it must offer a viable future for employees. She said Davis' ruling creates an opportunity for Mesaba to compromise with its workers.
"They can't simply use the courts to force their view of the world," she said.
http://www.aberdeennews.com/mld/aberdeennews/15517750.htm
Judge says Mesaba can't impose concessions on unions
MINNEAPOLIS - Mesaba Airlines, a regional feeder carrier for Northwest Airlines, can't impose concessions on its unionized workers, a federal judge ruled Wednesday.
U.S. District Judge Michael Davis ruled that U.S. Bankruptcy Judge Gregory Kishel erred in July when he granted the airline the authority to nullify existing labor contracts with its pilots, flight attendants and mechanics.
The unions appealed, and Davis concluded that that Mesaba didn't negotiate in good faith and that it failed a legal test requiring it to be "fair and equitable" in spreading around the pain of its bankruptcy restructuring.
Davis left Mesaba with two immediate options: liquidate or negotiate.
Mesaba President John Spanjers had warned Mesaba's 3,300 employees last week that they must reach deals quickly, otherwise the carrier would have impose cuts or stop flying.
In a statement Wednesday, Spanjers emphasized a desire to reach agreements with the three unions.
"While we are disappointed with Judge Davis' decision and will review all of our legal options to address his concerns, we are committed to successfully restructuring this company," Spanjers said. "What remains unchanged is the company's need to find a solution quickly to ensure the survival of the airline."
Mesaba said it has scheduled meetings with the three unions "to share detailed information about the company's cash position, which is quickly deteriorating."
Nick Granath, an attorney for the Aircraft Mechanics Fraternal Association, said negotiations were the way forward.
"We need to move from the court back to the bargaining table for real this time," Granath said. "This is not working for them to keep litigating this."
Mesaba filed for bankruptcy protection in Minneapolis last October and later asked its unions to accept labor cost cuts of 19.4 percent over six years. The unions have rejected such deep cuts, and Mesaba can't tap $24 million in debt financing unless it reaches its labor savings goal.
The pilots union has offered labor savings of 14 percent over three years.
"If the company cannot pay competitive rates to the employees who work here, we'll simply have to work someplace else," said Tom Wychor, chairman of the Mesaba pilots union.
Carla Rogat, vice president of the Mesaba flight attendants union, stressed that for the airline to be worth saving, it must offer a viable future for employees. She said Davis' ruling creates an opportunity for Mesaba to compromise with its workers.
"They can't simply use the courts to force their view of the world," she said.
