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Published on 7/17/2006 in the Prospect News Distressed Debt Daily.

Mesaba mechanics' union to appeal CBA rejection, continue negotiations

By Caroline Salls

Pittsburgh, July 17 - Mesaba Aviation, Inc. will continue negotiations with the Aircraft Mechanics Fraternal Association, but the union will immediately appeal Friday's court ruling that allows the company to reject its contracts with its unions with 10 days' notice, according to a union news release.

"The guiding principle of AMFA's efforts in the Mesaba bankruptcy has been to reach a consensual agreement with the company, because that is the only route that will allow both the employees and the company to move forward over difficult times," AMFA negotiating committee chairman Kevin Wildermuth said in the release.

"AMFA has put significant money on the table and has offered meaningful and painful compromises in order to accommodate the company's distressed condition. Now, a consensual agreement will occur only when the company begins to compromise its demands to meet the fair and equitable needs of its employees.

"In sum, AMFA members are willing to make sacrifices to help save Mesaba but they are not willing to subsidize corporate profits at their expense. If a consensual agreement is not reached, it will not be the fault of AMFA."

Wildermuth said in the release that if the company imposes a contract, AMFA leadership intends to assert rejection claims for the value of its contract, and the union expects mass individual employee resignations.

"AMFA reserves the right to exercise all legal options, up to and including a strike," Wildermuth said in the release.

"No strike will commence, however, without a call to strike issued by the AMFA national director or acting national director."

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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