Mesaba unions prevail in bankruptcy court
Liz Fedor, Star Tribune Last update: May 18, 2006 – 5:38 PM
A U.S. bankruptcy judge has rejected Mesaba Airlines' request to void the airline's labor contracts with its pilots, flight attendants and mechanics unions.
Since December, the regional carrier has been pressing for 19.4 percent in labor savings from its three large unions, but Mesaba management failed to reach deals at the bargaining table.
The ruling by U.S. Bankruptcy Judge Gregory Kishel on Mesaba's motion, handed down at 5 p.m., is a major victory for the unions. Attorneys for the unions argued earlier this year that Mesaba's concessionary requests exceeded what is necessary to restructure the company.
Thursday's decision means that management and the unions will return to the bargaining table. But management has lost some leverage, because it no longer can use the threat of abrogating existing labor contracts as an incentive to get a new deal.
Mesaba originally filed its motion Feb. 3 seeking to nullify the union contracts.
Mesaba declared bankruptcy in October. It provides regional flights for Northwest Airlines, which sought bankruptcy protection from its creditors in September.
Liz Fedor • 612-673-7709
