A bankruptcy judge gave unions a nearly unprecedented victory Thursday by preventing Mesaba Airlines from nullifying the labor contracts of its three largest unions. But his ruling doesn't alter the core truth, unions say: Labor and management must negotiate new contracts or the airline doesn't survive.

Judge Gregory Kishel denied Mesaba's 1113(c) motion to rip up its union contracts ? only the second time ever that a bankruptcy court has sided with workers, said Capt. Tom Wychor, chair of the Air Line Pilots Association's Master Executive Council at Mesaba.

"It's a huge victory for us," Wychor said, "but it's like landing on the beach at Normandy. All it means is that we've dodged the first bullet."

"The bottom line is, Mesaba is in bankruptcy," said Kevin Wildermuth, chair of the negotiating committee for the Aircraft Mechanics Fraternal Association at Mesaba. "All the employees and all the unions are aware that we have to get a consensual agreement so Mesaba can go forward."

Wychor and Wildermuth say that won't happen if Mesaba insists on seeking six-year contracts with overall concessions of 19.4 percent. "It's going to take movement on their side of the table," Wildermuth said.

Mesaba goes too far, unions say
Even though Kishel's ruling seems to accept Mesaba's basic economic claims, Wychor said, "it's clear to us who have to live under the onerous terms of their 19.4 percent view of the world that it's not a viable solution. We're not going to fly for starting salaries that put us under the poverty line and make us eligible for food stamps."

"We believe 19.4 and 6 years is an unrealistic goal," Wildermuth said. "It's too much, too deep and too long."

The cuts in jobs, wages and benefits that Mesaba is seeking exceed what is necessary to remain competitive, Wychor said. Similar regional carriers are competing effectively with average compensation packages, he said. "Mesaba does not have to undercut the industry by 10 percent."

"We know they need help," Wildermuth said. "The question is, 'How much?'"

Mesaba cannot justify its claim for an 8 percent profit margin when most airlines are losing money or, at best, making profits of 1 to 3 percent, he said. "Then, to take it off the backs of the employees is just absolutely ridiculous."

Back to the table
Wychor said he hoped Kishel's ruling is a "shot of reality" that makes management realize that "for this company to survive, we have to find consensual agreements that can be supported by all parties involved: pilots, flight attendants, mechanics and management."

The pilots have been the only union negotiating directly with Mesaba. Negotiators met three days this week, then met separately Friday morning with two mediators, Wychor said.

Talks are likely to resume in late May or early June, he said.

"We're hopeful that whatever the mediators come up with for ALPA could be used in some fashion with all three unions to close the gap," Wildermuth said. "We're ready to negotiate with the company anytime they're ready to negotiate."

Mesaba is one of Northwest Airlines' two regional Airlink carriers. Mesaba does all its flying under contract to Northwest, serving 111 cities in 30 states and Canada. Mesaba filed for Chapter 11 bankruptcy reorganization a month after Northwest did.

Michael Kuchta edits the Union Advocate, the official publication of the St. Paul Trades & Labor Assembly. E-mail him at advocate@stpaulunions.org