Reuters
Judge rejects Comair motion on voiding union pact
Wed Apr 26, 2006 9:43 PM ET
NEW YORK, April 26 (Reuters) - A U.S. bankruptcy court judge on Wednesday rejected a motion by regional carrier Comair to void its contract with its flight attendants union, and ordered the two sides to resume negotiations.
Comair, a subsidiary of bankrupt Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research), did not bargain in good faith in contract negotiations with its 970 flight attendants, as required by U.S. bankruptcy laws, Judge Adlai Hardin wrote in his ruling.
Comair, which like Delta is operating under bankruptcy protection from creditors, said it asked the flight attendants to concede $8.9 million as part of the company's $42 million cost-cutting program.
Hardin noted that Comair called this amount "non-negotiable."
"With rare exceptions not present here, true negotiation necessarily requires compromise in each side's bargaining positions," he wrote. "When one side presents a non-negotiable, take-it-or-leave-it proposal, negotiation stalls because there is nothing of substance to bargain for when one side must bid against itself."
The order jeopardizes Comair's survival, President Fred Buttrell wrote in a memo to employees.
"Without an agreement from our flight attendants, our restructuring plan and flying operation are likely to fail," he wrote.
Comair filed for bankruptcy along with Delta in September. The company has agreements with its pilots' and mechanics' unions and has said deals with the other two unions are contingent upon an agreement with the flight attendants.
The flight attendants' union has argued that the airline's demands for cuts are not justified and place too large a burden on its members.
The ruling "shows that the court agrees that we were being asked to shoulder onerous and unreasonable cuts," said Connie Slayback, president of Teamsters Local 513 in Cincinnati.
"We are still willing to do our fair share in response to the Delta Comair bankruptcy and will return to the bargaining table when the company agrees to bargain in good faith," Slayback said.
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