bomberbubba
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Liz Fedor, Star Tribune Last update: March 14, 2006 – 8:23 PM
Mesaba Airlines extended a peace offering to its unions Tuesday, and the two sides left U.S. Bankruptcy Court with an extra month's time to negotiate new contracts.
"We realize that it is in the best interests of everybody involved here to reach a consensual agreement," Mesaba spokeswoman Elizabeth Costello said.
The bankrupt regional carrier has asked its pilots, mechanics and flight attendants unions to lower their labor costs by 19.4 percent. But the unions have resisted that level of cuts. They have pressed Mesaba to provide them with alternate business models that incorporate some small-jet flying. The company's business plan is based solely on flying 49 Saab turboprops, which is about half the fleet Mesaba had in October when it filed for bankruptcy.
On Feb. 24, U.S. Bankruptcy Judge Gregory Kishel started hearing Mesaba's motion to void its current contracts with the three big labor unions. Under bankruptcy law, Kishel was expected to rule on that motion by March 27.
Management and labor agreed Tuesday to push back the judge's deadline to April 25.
Tom Wychor, chairman of the Mesaba pilots union, said both sides have spent so much time in court arguing their positions that they have had little time to bargain on new contracts.
Tuesday was Day 10 in the courtroom, and most of the negotiating sessions that have been held with the unions in recent weeks have been quite brief.
"By giving us a little time to focus on negotiations, and not just on litigation, we believe that we'll have a better opportunity to find solutions that will work for both the company and the pilot group," Wychor said.
The court hearing will resume Monday. Kishel said he expects all testimony to be completed next week.
Mesaba executives said earlier that they needed pay cuts and new labor contracts in place by April 1, so now they are showing some flexibility with their union leaders who had complained that management was attempting to rush concessionary bargaining.
Tonight, Mesaba employees are taking part in a labor unity rally at the Mall of America.
Liz Fedor • 612-673-7709
Mesaba Airlines extended a peace offering to its unions Tuesday, and the two sides left U.S. Bankruptcy Court with an extra month's time to negotiate new contracts.
"We realize that it is in the best interests of everybody involved here to reach a consensual agreement," Mesaba spokeswoman Elizabeth Costello said.
The bankrupt regional carrier has asked its pilots, mechanics and flight attendants unions to lower their labor costs by 19.4 percent. But the unions have resisted that level of cuts. They have pressed Mesaba to provide them with alternate business models that incorporate some small-jet flying. The company's business plan is based solely on flying 49 Saab turboprops, which is about half the fleet Mesaba had in October when it filed for bankruptcy.
On Feb. 24, U.S. Bankruptcy Judge Gregory Kishel started hearing Mesaba's motion to void its current contracts with the three big labor unions. Under bankruptcy law, Kishel was expected to rule on that motion by March 27.
Management and labor agreed Tuesday to push back the judge's deadline to April 25.
Tom Wychor, chairman of the Mesaba pilots union, said both sides have spent so much time in court arguing their positions that they have had little time to bargain on new contracts.
Tuesday was Day 10 in the courtroom, and most of the negotiating sessions that have been held with the unions in recent weeks have been quite brief.
"By giving us a little time to focus on negotiations, and not just on litigation, we believe that we'll have a better opportunity to find solutions that will work for both the company and the pilot group," Wychor said.
The court hearing will resume Monday. Kishel said he expects all testimony to be completed next week.
Mesaba executives said earlier that they needed pay cuts and new labor contracts in place by April 1, so now they are showing some flexibility with their union leaders who had complained that management was attempting to rush concessionary bargaining.
Tonight, Mesaba employees are taking part in a labor unity rally at the Mall of America.
Liz Fedor • 612-673-7709
