Contracts...What Do They Mean....Nothing at Mesaba.

[JEP]

Figured it would end this way, but here we go........

Judge rules Mesaba can reject contracts, impose terms
Chris Williams, Associated Press

A bankruptcy judge ruled on Monday that Mesaba Aviation Inc. can reject its union contracts with workers, a legal step toward a showdown that could result in a strike this week at the Northwest Airlines Corp. feeder.
Judge Gregory Kishel's ruling said Mesaba can impose terms at 12:01 a.m. on Wednesday, the day after he's scheduled to hear the airline's request for an injunction against a strike.

Mesaba said it will impose terms on its 1,140 pilots, mechanics and flight attendants. "We intend to go forward, but we also intend to negotiate," Michael Meyer, attorney for Mesaba Aviation Inc., said in court.

Union lawyers said they would swiftly appeal Monday's ruling. But Nicholas Granath, an attorney for Mesaba mechanics, said there was little chance an appeals judge would hear the case before the injunction hearing.

Unions have said they will strike rather than accept the proposed work rule changes and pay cuts. But both sides said after Kishel's decision that they would continue negotiating while the legal process plays out.

Mesaba funnels passengers to Northwest's hubs in Minneapolis, Detroit and Memphis, Tenn. from nearly 100 cities in America and Canada. It's the only air carrier serving some of those cities.

The airline has said it wants to cut labor costs by 17.5 percent.

This is the second time Kishel has given Mesaba permission to throw out its union contracts. Much of his first decision was upheld on a union appeal, and Kishel's ruling on Monday dealt with the parts that weren't.

The judge ruled the airline had bargained in good faith on snapbacks, or automatic restorations of cuts in the future. He also rejected a union argument that Mesaba parent MAIR Holdings Inc. would get an economic windfall through bankruptcy.

Within minutes of Kishel's decision, the unions renewed their vow to strike if the airline imposes terms.

"We simply will not accept this injustice," Tim Evenson, a spokesman for the flight attendants union, said in a statement. Tom Wychor, head of the pilots union, said employees don't fear liquidation.

"We need a consensual agreement for the company to survive," he said.

Mesaba has warned that its financial situation is deteriorating and it can't tap into $24 million in debt financing unless it reaches a deal with its unions. At the same time, the airline's creditors are getting impatient and could push for liquidation in an attempt to recover some of their money.

Mesaba gets all of its planes, passengers and revenue from Northwest, and when Northwest filed for bankruptcy protection in September 2005, Mesaba followed about a month later.

Northwest has been pressuring Mesaba and its other regional feeder, Pinnacle Airlines, to cut costs. The feeder airlines fly under the Northwest Airlink name.

Northwest Chief Executive Doug Steenland said last week that the airline has made preparations for getting Mesaba passengers to their destination if the airline workers strike.

Whatever Northwest's plans are, they won't include their pilots flying for Mesaba. The Northwest pilots said last week they wouldn't perform struck work.

[intern_mike]

It blows my mind that a business like the airlines, with such demand and growth, can loose money. It's not like there's an unpredictable market. Flippin unbelievable. The worst part of it all is that instead of taking a step back and trying to restructure, they just cut employment costs. I truely believe that when the airlines get their act together (if they ever do) the need for unionized workers will be greatly reduced simply b/c successful companies treat their employees fairly. What the airlines fail to understand is that their employees, for the most part, have passion and take great pride in what they do. No one chooses to be away from their family or spend thousands of dollars on training just so that they can say they have a job. These people truly care. Unbelievable.

[kellwolf]

We've already gotten our "what do we do here?" packages if Mesaba pilots strike. There's even stuff in there for reserve pilots and probationary pilots, and it's WELL written, IMO. My thoughts are if the cuts are imposed, the pilots strike, Mesaba won't last long. They're already cash strapped, so a two or three day strike will more or less do them in. If the judge rules tomorrow a strike is illeglal, I'm betting Mesaba pilots walk. I would. Either way, the only way for this to end even halfway decent is a collective agreement.

I truely believe that when the airlines get their act together (if they ever do) the need for unionized workers will be greatly reduced simply b/c successful companies treat their employees fairly.

Ah, but guess who the most unionized airline in the industry is?

[surreal1221]

Sad. . . just sad.