Hawaiian reaches deal
with biggest union

The carrier has a tentative
contract agreement covering
1,342 employees, but
still has work to do

Hawaiian Airlines, racing to reach contract agreements with its five unions before a key Jan. 25 reorganization hearing, said yesterday it reached a tentative deal on a three-year extension with its largest labor group.

The deal with the International Association of Machinists District Lodge 141 still needs to be ratified by the 1,342 Hawaiian employees, who work in accounting, reservations, customer services and ramp services. The contract includes a profit-sharing proposal and wage increases, but it also boosts the monthly payments that members must contribute for their health benefits.

The IAM's District Lodge 142, which represents 373 mechanics at Hawaiian, still has yet to reach an agreement.

Other unions still in negotiations are the Association of Flight Attendants, which has 824 members at the carrier; the Air Line Pilots Association, with 304 workers; and computer network engineers, with eight members.

Last month, the Transport Workers Union, which covers 27 dispatchers, ratified a new three-year contract.

Hawaiian now has reached deals covering roughly half its 2,900 union workers. Overall, the company has about 3,300 employees.

"This is an essential step for Hawaiian," company trustee Joshua Gotbaum said about the new pact. "We cannot exit bankruptcy without new labor agreements."

Without the agreements, the unions risk having federal Bankruptcy Judge Robert Faris cancel their contracts.

"That would be disastrous," said Randy Kauhane, assistant general chairman of IAM District Lodge 141.

"Considering all the turmoil taking place in the airline industry these days, we believe this is a fair agreement with Hawaiian and will recommend that our members ratify it."

Kauhane said a vote could happen during the holidays or early in January.

Gotbaum wouldn't say how close the company is to reaching agreements with the other groups.

When pressed on whether he thought all the agreements could be reached by Jan. 25, he said, "We have to."

"Hawaiian can't get out of Chapter 11 without new contracts," he said.

Faris is scheduled to decide on Jan. 25 whether to confirm a reorganization plan that would bring the airline out of its nearly 2-year-old bankruptcy.