Mesaba Aviation requests court OK for new transport workers' contract that cuts wages

By Caroline Salls

Pittsburgh, Jan. 17 - Mesaba Aviation, Inc. requested court approval to modify its collective bargaining agreement with the Transport Workers Union of America, including wage and benefit changes that will provide a critical portion of Mesaba's required labor cost savings, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Minnesota.

Specifically, the parties agreed to a six-year contract that includes a reduction in 2006 hourly pay rates beginning in April, a three-year longevity freeze and a 1% raise in fiscal year 2011.

Mesaba and the union also agreed to modify health and dental benefits, reduce sick leave pay and reduce short- and long-term disability benefits.

The company expects $897,423 in total contract savings over the six-year term.

A hearing is scheduled for Jan. 31.

Mesaba, an Eagan, Minn.-based Northwest Airlink affiliate, filed for bankruptcy on Oct. 13. Its Chapter 11 case number is 05-39258.

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