Judge Postpones Strike Decision

The bankruptcy judge reviewing Mesaba's motion to block a strike by its workers has postponed his decision.

Judge Gregory Kishel had given Mesaba permission to void its labor contracts and impose new work rules as the carrier struggles to climb out of bankruptcy. Labor negotiations haven't gone well, with Mesaba unable to gain what it says are necessary concessions.

Mesaba must re-bid routes it currently flies for parent company -- and sole customer -- Northwest. Mesaba says it needs cash from its workers to make that bid competitive. So far, according to company management, the three unions representing some 1500 pilots, flight attendants and mechanics haven't given enough.

After Judge Kishel granted Mesaba permission to ditch its labor contracts, the unions threatened to strike -- and Northwest pilots said they'd stand by their Mesaba compatriots by not filling in. Mesaba responded by asking Judge Kishel for a strike-blocking  injunction.

The Associated Press reports, after hearing seven grueling hours of testimony from both sides, Kishel balked at that decision. Instead, he withdrew permission for Mesaba to impose new work rules and postponed a decision on the strike question. Fortunately, for Mesaba, he's also barred from doing so any creditors who had threatened, should labor negotiations fail, to liquidate the company.

Union attorneys pleaded with the judge to reconsider his previous rulings. They argued the unfairness of allowing the company to impose rules without giving workers the opportunity to strike in response. Mesaba had pledged to continue negotiations, but workers say with a court order blocking a strike in hand , it would have little incentive to negotiate in good faith.

Mesaba's president John Spanjers told the judge the company would be devastated by a strike and likely fall victim to its creditors saying, "Our flight operations would cease, and we would likely see the creditors committee step in and seize our assets."

Aircraft Mechanics Fraternal Association attorney Nicholas Granath said, "All hope of any real leverage, any real negotiations to reach a consensual agreement, will evaporate. It will evaporate with the stroke of a pen, and that will be your honor's pen."

For now, the situation remains in limbo while the judge contemplates the testimony. He says he'll likely rule late this week or early next week.

FMI: www.mesaba.com