Mesaba, unions get more talking time
A judge extended the deadline for the bankrupt airline and three of its unions to reach deals on labor contracts.

Liz Fedor, Star Tribune
April 21, 2006

A bankruptcy judge agreed Friday to give Mesaba Airlines and three of its unions until May 11 to reach concessionary labor agreements.

U.S. Bankruptcy Judge Gregory Kishel had been scheduled to rule Tuesday on a Mesaba motion to allow the carrier to void its labor contracts and impose new pay rates and work rules. Attorneys for the airline and unions asked Kishel on Friday to extend his deadline until May.

It was the second time that Kishel gave the parties more time in the hopes they'll reach negotiated deals."The only pathway to a successful future at Mesaba" is through consensual agreements, Tom Wychor, chairman of the Mesaba pilots union, said Friday.

Two mediators joined the pilot negotiations this week. Typically, federal mediators from the National Mediation Board are involved in airline labor talks. Instead, the mediators are George Cohen, a Washington attorney selected by the pilots, and Tom Manley, an attorney from Raleigh, N.C., who was chosen by Mesaba management.

Craig Hansen, an attorney for the Mesaba creditors committee, said the mediators will afford the pilots and management an opportunity to take "a fresh look at the situation." He spoke in Kishel's courtroom Friday in Minneapolis.

Hansen said the mediators thought May 11 was a good target for reaching deals.

"We are pleased with the judge's decision to extend the deadline, so that we can continue working with the union representatives," Mesaba spokeswoman Elizabeth Costello said.

Mesaba filed for bankruptcy in October, and told its unions in December that it needed to reduce labor costs by 19.4 percent. The company has pressed labor negotiators for six-year contracts.

Kevin Wildermuth, lead negotiator for the Aircraft Mechanics Fraternal Association (AMFA), said mechanics will refuse to ratify a contract of such long duration.

"If they don't start showing some flexibility, Mesaba management will burn their own house down," AMFA attorney Nick Granath said.

In a message Friday to Mesaba pilots, the Air Line Pilots Association (ALPA) stressed that there are limits to the concessions that pilot negotiators will consider.

New contract "terms cannot include wages well below the industry average," the pilots union said.

Liz Fedor • 612-673-7709