Mesaba Negotiations update: September 14, 2006
On Wednesday, District Court Judge Michael Davis issued a
decision which reversed the Bankruptcy Court's July 14 decision regarding the
second 1113c motion.
As a result of Wednesday's ruling, Mesaba no longer has permission to reject the
collective bargaining agreements of AMFA, AFA, and ALPA and Mesaba cannot
unilaterally reduce wages or benefits.
The District Court decided that "Mesaba demonstrated bad faith by wholly
refusing to negotiate regarding snap backs" and that Mesaba did not show that
its
proposals to AMFA, AFA, and ALPA "assure[d] that all creditors, the debtor and
all of the affected parties are treated fairly and equitably." The District
Court
also held that Mesaba failed to offer any evidence to "address the effects of
reorganization on all relevant constituencies, including MAIR . . . a major
player in this
bankruptcy."
In all other respects, the District Court affirmed the Bankruptcy Court's other
findings.
The case is thus "remanded" or returned to the Bankruptcy Court which "must
consider" whether Mesaba's proposals treat the Unions fairly and equitable "in
light of
any sacrifices that MAIR may be asked to make."
AMFA, along with ALPA and AFA, has been invited to meet with the company to
discuss financial information about the company. AMFA will meet on Monday
morning. This meeting was set up before Wednesday's court decision.
Nate