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