Pinnacle labour deals renegotiation deadline extended to 13 July

Washington DC
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A deadline for financially troubled Pinnacle Airlines to renegotiate its labour contracts has been extended to 13 July, as Pinnacle's union United Steelworkers (USW) reiterate its opposition against financing provided by Delta Air Lines.

The USW, which represents flight attendants at Pinnacle and its subsidiary Colgan Air and ground operations employees at Pinnacle, is one of seven members on Pinnacle's creditors committee. Pinnacle filed for bankruptcy protection on 1 April.

In a presentation on 16 May to the US Bankruptcy Court for the Southern District of New York, the USW said that agreements between Pinnacle and Delta will "pose problems in upcoming bargaining".

The court on 16 May approved $74.3 million of debtor-in-possession financing for Pinnacle from Delta.

Pinnacle had presented the USW on 8 May with a proposal seeking changes to the agreement covering Pinnacle's flight attendants.

"Pinnacle has already announced hundreds of layoffs and is seeking drastic cuts to flight attendant, pilot and other employee pay, benefits and work rules," says USW International vice-president at large Carol Landry. "We will not allow any party to exploit the bankruptcy process. The USW will work aggressively to protect its members' standards of living, achieve job security and obtain opportunities to participate in the company's future success."

The USW had earlier filed an objection against the financing provided by Delta, saying that the financing package will not produce sufficient revenue to cover current and project labour costs under existing labour agreements.