Unions Agree To 15 Percent Cuts In Pay, Benefits

A big victory for Mesaba Airlines... as the airline confirmed Tuesday the unions representing its pilots, flight attendants, and mechanics have agreed to new contracts with the carrier. The contracts represent across-the-board cuts of about 15 percent in labor costs.

"Reaching this point has been difficult and complex; yet throughout this process, Mesaba employees have exemplified the true commitment and professionalism that makes Mesaba the exceptional airline it is," said John Spanjers, Mesaba Airlines president and COO. "The pilots, flight attendants, and mechanics along with every single Mesaba employee, are making a considerable sacrifice to ensure the survival of this company and I am confident we will see brighter days ahead."

"We look forward to working together with all of Mesaba’s employees to make certain Mesaba emerges from bankruptcy positioned for growth and success," Spanjers added.

The ratified union contracts -- including an earlier agreement for Mesaba's dispatchers, as well as changes to wages and benefits for management at the bankrupt regional carrier -- will go into effect December 1, 2006.

The unions involved -- the Air Line Pilots Association, the Association of Flight Attendants, and Aircraft Mechanics Fraternal Association -- banded together to protest the airline's original intent to cut nearly 20 percent in wages and benefits. A proposed job action against the carrier by the unions -- in response to the breakdown of earlier talks -- was shot down by the Bankruptcy Court in October.

"Management's insistence that all employees take 19.4% cuts in wages and benefits over six years was so drastic that our unions naturally came together to protect our members' interests," said Mesaba MEC Chairman Capt. Tom Wychor. "I'm proud that we were able to work so well together across employee lines, and I expect this collaboration to continue far into the future. Our success stemmed directly from the unity demonstrated by the Mesaba Labor Coalition."

The company's restructuring plan centers on securing its core business of 49 Saabs with Northwest Airlines, and achieving a cost structure that positions Mesaba to be very competitive for new opportunities.

Mesaba operates as a Northwest Jet Airlink and Airlink partner under a service agreement with Northwest Airlines. The airline serves 88 cities in the United States and Canada from Northwest's and Mesaba's three major hubs: Detroit, Minneapolis/St. Paul and Memphis. Mesaba currently operates a varied fleet of regional jet and turboprop aircraft, including Avro RJ85s, Saab SF340s and 50-passenger Canadair Regional Jets.

FMI: www.mesaba.com, www.alpa.org, www.amfanatl.org, www.afanet.org