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Monday, January 5, 2004

Mesaba Pilots Prepare For Strike As Deadline Approaches

As a Jan. 10 strike deadline approaches, Mesaba Airlines pilots are opening additional strike operations centers in Detroit and Memphis. In December, the pilots opened a strike operations center in Minneapolis (CRAN, Dec. 8, 2003). Mesaba Airlines, the nation's seventh largest regional carrier, which flies for Continental Airlines [NYSE: CAL] and Northwest Airlines [Nasdaq: NWAC], is based in Eagan, Minn., a suburb of Minneapolis.

Talks between the Mesaba members of the Air Line Pilots Association (ALPA), which represents the pilots, and the airline were scheduled to resume Jan. 5. If those talks fail, the pilots plan to go on strike on Jan. 10. A strike would impact about 600 daily departures for Northwest Airlink.

Mesaba's 844 pilots have been in contract talks with management since June 2001. The parties failed to reach agreement during federal mediation, and the union rejected binding arbitration.

"We deserve and have earned a fair contract," said Capt. Tom Wychor, chairman of the Mesaba ALPA unit. "Mesaba pilots don't want a strike, we want a contract. But we are prepared to strike if management forces us to."

The primary unresolved issues include job security, compensation, retirement and work rules. A Mesaba first officer's annual starting salary is $17,000, while more than 400 of the 844 Mesaba pilots earn less than $32,500 a year, ALPA contends. In October, the pilots overwhelmingly voted to authorize a strike should union leaders call for a work stoppage (CRAN, Nov. 3, 2003).

"Mesaba continues to be profitable and is very capable in meeting our fair contract demands," Wychor said. "Our concessions in 1996 have saved Mesaba over $12 million to date."

Negotiations began in June 2001 and the pilot contract became amendable in June 2002. It was negotiated in 1996 and was extended for two years by concessionary amendments that enabled Mesaba to expand its fleet.

Mesaba operates a fleet of 36 Avro RJ-85 jets and 67 Saab turboprops. Northwest is considering removing the Avros from Mesaba's fleet and replacing them with more cost- efficient regional jets, but that decision has been postponed until February. If Northwest ends its contract with Mesaba for the Avro RJ-85s, it could wipe out 40 percent of Mesaba's traffic and revenues.

ALPA officials have contended that the threat was lodged in order to strengthen Mesaba's negotiating stand with its pilots, a claim the airline denies.

Northwest also recently decided not to update Mesaba's fleet, and instead gave all its newly leased Canadair regional jets (CRJs) to Northwest subsidiary Memphis-based Pinnacle Airlines. (CRAN, Oct. 13, 2003).

The Mesaba pilots can strike only after the federally mandated 30-day cooling-off period expires on Jan. 9.

Mesaba serves 114 cities in 30 states and Canada from Northwest's three major hubs: Detroit, Minneapolis/St. Paul and Memphis.

>>Contact: Dave Jackson, Mesaba, 612-713-6409; John Mazor, ALPA, 703-481-4440.<<