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Judge Voids Mesaba's Power To Force Cuts

Mesaba Airlines' power to impose concessions on its unionized workers was taken away by U.S. District Judge Michael Davis.

Davis determined that U.S. Bankruptcy Judge Gregory Kishel erred in mid-July when he granted the airline the authority to nullify existing labor contracts with its pilots, flight attendants and mechanics. Ruling on an appeal by the carrier's unions, Davis decided that Mesaba didn't negotiate in good faith and failed a legal test requiring it to be "fair and equitable" in spreading the pain of its bankruptcy restructuring.

Without the authority to force pay cuts on union workers, Mesaba management now is left with two immediate options: liquidate a key provider of regional air service or negotiate deals that union workers will ratify.

Mesaba President John Spanjers earlier had warned Mesaba's 3,300 employees that they must quickly reach deals with the company or the carrier would impose labor cuts or "cease flight operations."

"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 in a statement. "What remains unchanged is the company's need to find a solution quickly to ensure the survival of the airline." He emphasized a desire to "reach consensual agreements with each work group."

Carla Rogat, vice president of the Mesaba flight attendants union, said all of the unions want to join management in saving the company. But she stressed that for the airline to be worth saving, it must offer a viable future for employees.