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Mesaba CBA rejection order vacated following partial district court reversal
By Caroline Salls
Pittsburgh, Sept. 22 - Mesaba Aviation, Inc.'s order approving rejection of its collective bargaining agreements with its flight attendants, pilots and mechanics was vacated Friday by the U.S. Bankruptcy Court for the District of Minnesota following a partial district court reversal of the ruling.
On Sept. 14, district court judge Michael J. David reversed two parts of the bankruptcy court's order approving its rejection of collective bargaining agreements.
As previously reported, the district court reversed the bankruptcy court's decisions with respect to Mesaba's refusal to negotiate snap-back provisions and its failure to demonstrate that its proposals fairly and equitably spread the burden of reorganization among all relevant affected parties, particularly parent Mair Holdings, Inc.
In that ruling, further proceedings on the reversed issues were remanded back to the bankruptcy court.
On remand, Davis said the bankruptcy court must consider whether Mesaba has met its burden of proof to show that the proposals treat the unions fairly and equitably in light of any sacrifices that Mair may be asked to make in this reorganization.
Bankruptcy court judge Gregory F. Kishel said the collective bargaining agreement rejection motion will now remain pending until Mesaba withdraws it, until the company and the unions enter into a comprehensive settlement, or until the bankruptcy court closes a reopened record and then makes a decision on it.
Mesaba, an Eagan, Minn.-based Northwest Airlines affiliate, filed for bankruptcy on Oct. 13, 2005 in the U.S. Bankruptcy Court for the District of Minnesota. Its Chapter 11 case number is 05-39258.
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