Judge rules Mesaba CAN'T impose concessions

PurduePete

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Jun 15, 2006
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For the second time in the span of a week, a federal judge overturned the ruling of a bankruptcy court (company friendly?) judge and denied Mesaba Airlines management the right to impose concessionary contracts on their employees...

http://www.aberdeennews.com/mld/aberdeennews/15517750.htm

Judge says Mesaba can't impose concessions on unions

MINNEAPOLIS - Mesaba Airlines, a regional feeder carrier for Northwest Airlines, can't impose concessions on its unionized workers, a federal judge ruled Wednesday.

U.S. District Judge Michael Davis ruled that U.S. Bankruptcy Judge Gregory Kishel erred in July when he granted the airline the authority to nullify existing labor contracts with its pilots, flight attendants and mechanics.

The unions appealed, and Davis concluded that that Mesaba didn't negotiate in good faith and that it failed a legal test requiring it to be "fair and equitable" in spreading around the pain of its bankruptcy restructuring.

Davis left Mesaba with two immediate options: liquidate or negotiate.

Mesaba President John Spanjers had warned Mesaba's 3,300 employees last week that they must reach deals quickly, otherwise the carrier would have impose cuts or stop flying.

In a statement Wednesday, Spanjers emphasized a desire to reach agreements with the three unions.

"While we are disappointed with Judge Davis' decision and will review all of our legal options to address his concerns, we are committed to successfully restructuring this company," Spanjers said. "What remains unchanged is the company's need to find a solution quickly to ensure the survival of the airline."

Mesaba said it has scheduled meetings with the three unions "to share detailed information about the company's cash position, which is quickly deteriorating."

Nick Granath, an attorney for the Aircraft Mechanics Fraternal Association, said negotiations were the way forward.

"We need to move from the court back to the bargaining table for real this time," Granath said. "This is not working for them to keep litigating this."

Mesaba filed for bankruptcy protection in Minneapolis last October and later asked its unions to accept labor cost cuts of 19.4 percent over six years. The unions have rejected such deep cuts, and Mesaba can't tap $24 million in debt financing unless it reaches its labor savings goal.

The pilots union has offered labor savings of 14 percent over three years.

"If the company cannot pay competitive rates to the employees who work here, we'll simply have to work someplace else," said Tom Wychor, chairman of the Mesaba pilots union.

Carla Rogat, vice president of the Mesaba flight attendants union, stressed that for the airline to be worth saving, it must offer a viable future for employees. She said Davis' ruling creates an opportunity for Mesaba to compromise with its workers.

"They can't simply use the courts to force their view of the world," she said.
 
<_< --- Maybe now the judge considering the injunction, will take a good hard view at what he's doing! This can't hurt your case! I just hope your attorneys run with it! Congrats!!! :up:
 
[quote name='Nor'Easta' post='415466' date='Sep 15 2006, 01:41 AM']I love it!!!! :up:
STOP CORPORATE GREED![/quote] <_< ----With your attitude towards your fellow furloughed F/A's, there's only one word that describe you! That word is "HYPOCRITE!"
 
Whoa, a judge that isn't in managements back pocket??? Where was this guy when Dougie Stealin' and his crooked henchmen were pounding the AMFA mechanics with a what was really a lockout??? I guess miracles do happen.... :up:
 
Whoa, a judge that isn't in managements back pocket??? Where was this guy when Dougie Stealin' and his crooked henchmen were pounding the AMFA mechanics with a what was really a lockout??? I guess miracles do happen.... :up:
Amazing isnt it? One has to wonder what the legal teams for all these other unions were saying as the airlines where up there telling the Judge that the employees, not the executuves, but the employees alone had to foot the entire bill for increased fuel prices through long term contractual concessions. Then on top of that they claimed that not only should the executuves be spared the pain but their pay should be increased!!! In the meantime these other unions just sat on their hands and told their members they were lucky to have a job!!!
 
Amazing isnt it? One has to wonder what the legal teams for all these other unions were saying as the airlines where up there telling the Judge that the employees, not the executuves, but the employees alone had to foot the entire bill for increased fuel prices through long term contractual concessions. Then on top of that they claimed that not only should the executuves be spared the pain but their pay should be increased!!! In the meantime these other unions just sat on their hands and told their members they were lucky to have a job!!!
My Question is where does this leave all the permanent replacement Mechanics that Northwest has hired. The Unions that have reached a consentual agreement with the company have a long row to how. The mechanics have not reached agreement with the company which means they can also appeal the bankruptcy judge's decission. It looks like again AMFA was the only group at Northwest or other Airline other than masaba who did what they needed to in an effort to perserve the mechanics perfession. Now Nortwest will have to spread the pain fairly or liquidate. The distrect judge said snapback were a must. Thank you AMFA get the apeal and jet the skabs off your jobs as soon as possible
 
My Question is where does this leave all the permanent replacement Mechanics that Northwest has hired. The Unions that have reached a consentual agreement with the company have a long row to how. The mechanics have not reached agreement with the company which means they can also appeal the bankruptcy judge's decission. It looks like again AMFA was the only group at Northwest or other Airline other than masaba who did what they needed to in an effort to perserve the mechanics perfession. Now Nortwest will have to spread the pain fairly or liquidate. The distrect judge said snapback were a must. Thank you AMFA get the apeal and jet the skabs off your jobs as soon as possible
Now The mechanic are negotaiting from the standpoint of there legal contract. I don't think that had eny skab replacement workers in it. How long do you think Northwest will keep paying skabs to replace the striking mechanics and financing the strike through unemployment benefits. This is the Quality management team they need to retain? smart!!!
 
For the second time in the span of a week, a federal judge overturned the ruling of a bankruptcy court (company friendly?) judge and denied Mesaba Airlines management the right to impose concessionary contracts on their employees...

http://www.aberdeennews.com/mld/aberdeennews/15517750.htm

Judge says Mesaba can't impose concessions on unions

MINNEAPOLIS - Mesaba Airlines, a regional feeder carrier for Northwest Airlines, can't impose concessions on its unionized workers, a federal judge ruled Wednesday.

U.S. District Judge Michael Davis ruled that U.S. Bankruptcy Judge Gregory Kishel erred in July when he granted the airline the authority to nullify existing labor contracts with its pilots, flight attendants and mechanics.

The unions appealed, and Davis concluded that that Mesaba didn't negotiate in good faith and that it failed a legal test requiring it to be "fair and equitable" in spreading around the pain of its bankruptcy restructuring.

Davis left Mesaba with two immediate options: liquidate or negotiate.

Mesaba President John Spanjers had warned Mesaba's 3,300 employees last week that they must reach deals quickly, otherwise the carrier would have impose cuts or stop flying.

In a statement Wednesday, Spanjers emphasized a desire to reach agreements with the three unions.

"While we are disappointed with Judge Davis' decision and will review all of our legal options to address his concerns, we are committed to successfully restructuring this company," Spanjers said. "What remains unchanged is the company's need to find a solution quickly to ensure the survival of the airline."

Mesaba said it has scheduled meetings with the three unions "to share detailed information about the company's cash position, which is quickly deteriorating."

Nick Granath, an attorney for the Aircraft Mechanics Fraternal Association, said negotiations were the way forward.

"We need to move from the court back to the bargaining table for real this time," Granath said. "This is not working for them to keep litigating this."

Mesaba filed for bankruptcy protection in Minneapolis last October and later asked its unions to accept labor cost cuts of 19.4 percent over six years. The unions have rejected such deep cuts, and Mesaba can't tap $24 million in debt financing unless it reaches its labor savings goal.

The pilots union has offered labor savings of 14 percent over three years.

"If the company cannot pay competitive rates to the employees who work here, we'll simply have to work someplace else," said Tom Wychor, chairman of the Mesaba pilots union.

Carla Rogat, vice president of the Mesaba flight attendants union, stressed that for the airline to be worth saving, it must offer a viable future for employees. She said Davis' ruling creates an opportunity for Mesaba to compromise with its workers.

"They can't simply use the courts to force their view of the world," she said.



[/quote]
QUOTE(Bob Owens @ Sep 15 2006, 07:12 AM)

Amazing isnt it? One has to wonder what the legal teams for all these other unions were saying as the airlines where up there telling the Judge that the employees, not the executuves, but the employees alone had to foot the entire bill for increased fuel prices through long term contractual concessions. Then on top of that they claimed that not only should the executuves be spared the pain but their pay should be increased!!! In the meantime these other unions just sat on their hands and told their members they were lucky to have a job!!!


My Question is where does this leave all the permanent replacement Mechanics that Northwest has hired. The Unions that have reached a consentual agreement with the company have a long row to how. The mechanics have not reached agreement with the company which means they can also appeal the bankruptcy judge's decission. It looks like again AMFA was the only group at Northwest or other Airline other than masaba who did what they needed to in an effort to perserve the mechanics perfession. Now Nortwest will have to spread the pain fairly or liquidate. The distrect judge said snapback were a must. Thank you AMFA get the apeal and get the skabs off your jobs as soon as possible
 
Now The mechanic are negotaiting from the standpoint of there legal contract. I don't think that had eny skab replacement workers in it. How long do you think Northwest will keep paying skabs to replace the striking mechanics and financing the strike through unemployment benefits. This is the Quality management team they need to retain? smart!!!
Keep in mind that the Mesaba bankruptcy and the NWA bankruptcy are entirely two different cases, being tried in two different jurisdictions. There's a reason NWA filed in New York State rather than Minnesota as Mesaba did. The Mesaba victory really has no impact on the NWA case.
 

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