Federal Judge Says 'Not So Fast Mesaba'

A federal judge yesterday overturned a July ruling in bankruptcy court that allowed Mesaba Airlines to void a labor contract with its flight attendants.

The Federal District Court of Minnesota's Judge Michael J. Davis says Mesaba refused to negotiate "snap-back" provisions that would return wages to pre-bankruptcy levels after the airline recovers financially from the current crisis.

Bankruptcy law requires a company wishing to void a labor contract to prove negotiations have been unsuccessful and the concessions necessary for the reorganization are, among other things, "fair and equitable to all parties." Mesaba's refusal to discuss snap-back provisions, says Judge Davis, shows the airline wasn't fairly distributing the burden of reorganization.

In a news release, Mesaba Master Council Executive President Tim Evenson said, "This is a monumental victory for Mesaba workers and employees everywhere. We hope that this decision will encourage current management -- if they remain in control of the airline -- to come back to the table for productive discussions -- this time with a proposal that is fair. Over 100 days ago, we presented the company with a cost savings proposal that met their targeted concessions. We have heard nothing from them since. It is time for management to drop the litigation and negotiate fairly with the flight attendants."

Mesaba's flight attendants, represented by the Association of Flight Attendants (AFA), lost this battle in July. Mesaba had proposed a 19.4% cut in pay and benefits during contract negotiations. The Judge handling the bankruptcy case gave Mesaba the right to void the flight attendant's contract after they threatened to strike in response to Mesaba's offer.

Yesterday's ruling sends the whole mess back to bankruptcy court.

Mesaba filed for Chapter 11 protection almost simultaneously with its partner, Northwest. Both airlines are struggling to reorganize, and both are experiencing tremendous strain on the relationship between their labor and management.

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