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Any thoughts on this one?

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tjandthebear

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Aug 16, 2002
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XJ - Any thoughts on this one?

Pilots, Mesaba face May 18 deadline
Mesaba's bankruptcy judge wants the airline and its unions to agree to new contracts by Thursday.
Liz Fedor, Star Tribune

Pilots, Mesaba face May 18 deadline

Tough health care medicine for Target workers
Mesaba Airlines management and its pilots union must negotiate a new contract in the next week or turn their fates over to a bankruptcy judge.

On Thursday, the two sides asked U.S. Bankruptcy Judge Gregory Kishel to give them more time to reach a deal with the aid of mediators. Kishel granted a third extension to allow more bargaining with Mesaba's pilots, flight attendants and mechanics on long-term concessionary deals.

Kishel is intimately involved in the timeline for the bargaining, because Mesaba has asked the judge for permission to void its existing labor contracts, which would allow Mesaba to impose lower pay rates and new work rules.

"Our efforts are focused on reaching a consensual deal," Mesaba spokeswoman Elizabeth Costello said Thursday. "We hope the continued talks this week would allow us to do that."

Tom Wychor, chairman of the Mesaba pilots union, said pilot negotiators want a deal that "will allow this company to survive and is acceptable to the pilots as well as the management team."

Leaders of all three unions have resisted Mesaba's attempts to slash labor costs by 19.4 percent and lock in those concessions for six years.

If no deal is reached and Mesaba imposes unacceptable pay rates and work rules, "there's no doubt there will be a strike here," Wychor said. But he noted there has been "good dialogue" over the past few days. Wychor has joined his negotiators at the table, as has Mesaba President John Spanjers.

While the May 18 deadline applies to three Mesaba unions, the pilots are the focus of the talks, and a breakthrough with them could buy the company time to reach deals with mechanics and flight attendants.

Thomas Lallier, an attorney for Mesaba's creditors committee, said the two mediators selected by the pilots and company support another week of talks. But in a written statement, the mediators said: "[We] do not foresee a set of circumstances that will cause us to support continuation of the [mediation] process beyond [next Thursday]."

If no deals are reached, Kishel is poised to immediately issue his ruling.

During a conference in his courtroom Thursday, Kishel held up the written ruling he has already prepared. "Here you go, 97 pages," Kishel said. "One way or the other, things will be at a head or resolution next Thursday."

Liz Fedor • 612-673-7709
 
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