May 2, 2006 - Negotiations Update


The AMFA negotiating team met with Mesaba Management today at the Pan Am Training Facility in Eagan Minnesota. This was our first negotiating meeting since April 19, 2006. We were presented with Management's latest offer that was prefaced with their assertion that the previously proposed 19.4% reductions in wages and benefits with a six year duration has not changed. This is still the firm position of the Company and has not changed since December of 2005. This offer includes a weighted average pay scale reduction of 10.7% with a ten year top out. This places the base wage after ten years of service for the Aircraft Mechanic and GSE Mechanic Classifications at $18.93 and the base wage for the Maintenance Support Classification at $12.62. This offer had the RII premium at $0.44, the Premium Position pay at $1.01, License Premium at $1.32, Second shift premium at $0.35 and Third shift premium at $0.53. Also included in the pay scale proposal was a two year longevity freeze and 1% base wage increases at date of signing plus one year and another at date of signing plus 4 years. Mesaba also proposed that all employees that have completed 84 months of service as of 5/1/06 will be placed on the scale at $18.93 for pay purposes only. At the end of this agreement, Mesaba proposes that the top out base wage for the Aircraft Mechanic and GSE Mechanic in 2011 would be $19.31 and $12.87 for Maintenance Support.

Mesaba has once again proposed paying sick time at 75% of pay; reducing STD benefits while increasing the elimination period; changes to the LTD plan that include a lower wage replacement with only a two year benefit duration that optionally allows the employee to fund the buy-up difference for any increased coverage from the base plan; increasing the employee contribution level of the health benefits from current book while increasing the deductible from the current plan, along with employee paying full fare for office visits and any copays. This contribution will nearly double during the life of the contract by Mesaba's own estimate, further eroding the wages of the AMFA members.

AMFA expressed great disappointment in the Company's proposal and their steadfast refusal to budge even a tenth of one percent from their original 19.4% and 6 year term, and explained that without movement from Management's side of the table, there is simply nothing further to talk about from an economic perspective. We will not negotiate against ourselves. We cannot continue to make economic movements in an attempt to close the gap while Management simply rearranges the deck chairs on the Titanic. AMFA made this issue abundantly clear to Management two weeks ago and unfortunately they failed to take this message to heart. AMFA reiterated our position again today in the strongest of terms. We regret that Mesaba Management has elected to remain inflexible on an unrealistic goal and rejected this opportunity to negotiate a consensual agreement with AMFA. No further negotiating sessions are scheduled at this time.

Kevin Wildermuth
AMFA Negotiating Chair
Jim Schafer
AMFA Local 5 Airline Rep

Nathan Winch
AMFA Local 33 Airline Rep

Neil White
AMFA Local 5 Rep