USW Objects to Pinnacle Airline’s Bankruptcy Financing, Citing Unfair Conditions Set by Delta Airlines

More information, contact: Tony Montana, USW – 412-562-2592

PITTSBURGH – The United Steelworkers (USW) today said that the union has filed an objection in U.S. Bankruptcy Court for the Southern District of New York to Pinnacle Airlines, Inc.’s motion for approval Debtor in Possession (DIP) financing provided by Delta Airlines. 

The DIP financing package includes new connection agreements negotiated on the eve of the bankruptcy filing, which the USW states, produces “insufficient revenue to cover current and projected labor costs under the existing collective bargaining agreements.”  Likewise, the USW states in its objection that the DIP financing establishes “overly aggressive and unrealistic milestones for collective bargaining” that would unnecessarily push Pinnacle toward filing motions to reject the company’s labor contracts under Section 1113 of the Bankruptcy Code.

Under the proposed DIP motion, Pinnacle has 45 days to renegotiate collective bargaining agreements with its employee representatives, which includes the USW representing Pinnacle’s flight attendants, as well as two other unions. The USW received the company’s proposals on Tuesday, May 8.

“The USW has already begun its financial analysis of Pinnacle’s proposals, which seek deep concessions for our members,” said USW Vice President at Large Carol Landry. “The USW is prepared to bargain earnestly with Pinnacle, but in light of both management’s extraordinary demands and the complexity of the bankruptcy reorganization, the tight timelines imposed by Pinnacle and Delta do more harm than good to the bargaining process.”

Vice President Landry, who is responsible for the USW’s Airline Division, added that the USW stands ready to work with all parties in interest in relation to the DIP Motion and the Pinnacle reorganization process.

The USW represents approximately 1,800 flight attendants at Pinnacle Airlines and Colgan Air as well as 800 ground operations employees at Pinnacle.

The USW represents about 850,000 working men and women in the United States and Canada in a wide variety of industries, ranging from glass making to mining, paper, steel, tire and rubber and other manufacturing environments to the public sector, service and health care industries.

# # #