Mesaba, mechanics continue marathon talks

Mechanics union and Mesaba still try to reach a negotiated settlement while threat of imposed contract looms.

Liz Fedor, Star Tribune
October 31, 2006

Mesaba Airlines and its mechanics union were bargaining late Monday on a cost-cutting labor contract, but it was unclear whether the mechanics could reach a deal as the pilots and flight attendants did over the weekend.

"We are still talking and are hopeful that we can reach a consensual agreement," Mesaba spokeswoman Elizabeth Costello said Monday evening. At 7:30 p.m., she said the two sides would return to the bargaining table after a dinner break.

The parties negotiated for 11 to 12 hours during a session that began early Sunday evening and continued into Monday morning.

Nick Granath, an attorney for the Aircraft Mechanics Fraternal Association (AMFA), said Monday morning that "there are no guarantees that the company will not impose" work terms.

Mesaba must slash its labor costs as a condition of getting access to $24 million in debt financing. Mesaba's Costello said tentative agreements with all three unions would allow the regional carrier to tap into that pool of money. But she added that Mesaba cannot access that money unless it gets a deal with AMFA or imposes labor cost cuts of 17.5 percent that have been authorized by a bankruptcy judge.

The imposed terms approved by the court would include pay cuts of 10.8 percent for Mesaba's mechanics plus reduced sick-leave pay and other wage, benefit and work rules changes to reach the 17.5 percent savings.

"AMFA will return to the bargaining table, but we are not optimistic that we can avoid an imposed contract," Granath said early Monday. If a tentative agreement is not reached, Granath said AMFA would pursue its appeal to try to overturn the bankruptcy judge's ruling that allows Mesaba to void its contract with AMFA.

The two sides are bargaining with the involvement of a federal mediator. Costello declined to comment on the substance of Monday afternoon's talks. She also declined to say whether Mesaba has a deadline for imposing work terms on AMFA if a deal cannot be forged at the bargaining table.

Liz Fedor • 612-673-7709 • lfedor@startribune.com