http://boston.bizjournals.com/boston...7/daily27.html

Thursday, March 20, 2008 - 5:04 PM CDT

An arbitrator ruled Thursday that Pinnacle Airlines Inc. violated pilots' contractual rights when management refused to meet and discuss labor protection issues with them following the purchase of Colgan Air in early 2007.
Pinnacle Airlines Inc. is a wholly-owned subsidiary of Pinnacle Airlines Corp.
According to a press release issued by the Air Line Pilots Association International, which represent Pinnacle pilots, the arbitrator found that Pinnacle Airlines Corp. (Nasdaq: PNCL) and Pinnacle Airlines Inc. were "alter egos functioning as a single employer at the time of the Colgan purchase."
By claiming separate organizations, Pinnacle Airlines Corp. alleged it was not legally bound by the contract pilots signed with Pinnacle Airlines Inc.
The arbitrator ruled that Pinnacle's "consistent failure to distinguish between the two corporate entities provides persuasive evidence that Pinnacle Airlines Corp. and Pinnacle Airlines Inc. were alter egos functioning as a single employer at the time of the acquisition of Colgan by PNCL."
The arbitrator concluded that based on that finding, the company violated the labor protection section of the collective bargaining agreement with the pilots, according to the ALPA press release.
It was not clear late Thursday what the next step would be in the on-going labor negotiations and how Pinnacle would be affected by the ruling.
Pinnacle pilots and management have been in protracted contract negotiations for more than three years. A mediator assigned by the National Mediation Board has been involved in the process since fall 2006.
Based in Memphis, Pinnacle Airlines operates as Northwest Airlink and Delta Connection and flies more than 130 modern jet aircraft.
Need Assistance? More Latest News