Aloha Airlines moves
to force contract on union

Aloha Airlines, following up on a threat, filed a motion in federal Bankruptcy Court yesterday seeking to force a tentative contract temporarily on its 250 mechanics and inspectors.

Aloha, which filed for Chapter 11 reorganization on Dec. 30, has asked the court for an expedited hearing on the motion on Tuesday.

The company said it will save $6 million annually with the tentative contract that calls for a 10 percent pay cut in 2005 and 2006.

The mechanics and inspectors of the International Association of Machinists and Aerospace Workers District 142 has twice rejected a tentative contract with Aloha.

Aloha's other four unions already have ratified contracts that include 10 percent wage cuts.

"Their only complaint appears to be that they should not have to accept the same percentage pay cut that every other Aloha employee, including management, has agreed to," Aloha said in its motion. "Aloha must seek interim relief to prevent the 'tail' from wagging the dog.' "

Aloha said the interim relief, which would take effect immediately and end around July 31, will hold a tentative agreement in place until the union accepts a contract.

But the company might have been able to avoid the action if Chief Executive David Banmiller had not authorized a 10 percent pay cut from the union members' wages in anticipation of a successful ratification vote.

A longtime Aloha mechanic, who requested to remain anonymous, said yesterday that union members wanted to ratify a tentative agreement during a Feb. 24 vote, after rejecting an earlier agreement.

But union members soured on the agreement when neighbor island mechanics discovered that their paychecks had been garnished ahead of the vote, the mechanic said.

Banmiller acknowledged after a Feb. 25 court hearing that they had been docked in their paychecks.

Banmiller attributed the contract rejection to failed communications and a misunderstanding of the issues.

The airline said that without interim relief the agreements it reached with other employee groups are in jeopardy.

Also in trouble is Aloha's financing deal with MatlinPatterson Global Opportunities Partners II LP, which is proposing a $90 million package to bring the airline out of bankruptcy.