Judge to rule Monday on Mesaba
Judge orders Mesaba to hold off on pay cuts; to rule on unions' right to strike Monday
Associated Press
Last update: October 21, 2006 – 5:44 PM
A federal bankruptcy judge ordered Mesaba Airlines to wait until Thursday before imposing any pay cuts on its employees, as negotiations between the two sides appeared to be on hold for the weekend.
U.S. Bankruptcy Judge Gregory Kishel is scheduled to rule Monday on whether unions at Mesaba Aviation Inc. can strike if the feeder for Northwest Airlines Corp. imposes pay cuts on its workers.
Kishel ruled Oct. 16 that Mesaba can void its contracts with its pilots, flight attendants and mechanics unions and impose pay cuts on workers, but he directed management on Friday to delay that action until at least 12:01 a.m. Thursday.
Mesaba is seeking concessionary deals from the three unions as it seeks to hold creditors at bay. But no bargaining sessions were scheduled for this weekend.
"We anticipate talking with the unions next week before the Thursday deadline" for voiding current contracts and setting new work terms, Mesaba spokeswoman Elizabeth Costello said Friday.
If negotiations fail, Mesaba has told Kishel it intends to impose labor cost cuts of 17.5 percent on the unions.
Attorneys for Mesaba's pilots, flight attendants, and mechanics have argued that judges are legally barred from blocking strikes even when the consequences would be dire. The unions have also said it would be unfair to allow the company to impose the terms it wants while also taking away their right to strike, saying it would strip unions of any leverage they might have in negotiations.