Posted on: Saturday, April 16, 2005

Judge set to rule on pilots' deal, but urges more talks

By Dan Nakaso
Advertiser Staff Writer

A U.S. Bankruptcy Court judge yesterday said he is prepared to decide whether Hawaiian Airlines pilots must accept new contract terms, but urged the company and pilots union to continue negotiating a settlement on their own.

Both sides met last night after the conclusion of a three-day hearing requested by Hawaiian. At stake is whether Hawaiian can resolve its sixth and final union contract and emerge from federal bankruptcy protection after two years under new ownership.

"Today was important because the judge sent a very clear message that the pilots and the union are better served if they go back to the table and negotiate an agreement, but that one way or another, Hawaiian will get a contract that will permit it to exit bankruptcy," said Josh Gotbaum, Hawaiian's bankruptcy trustee.

Capt. Kirk McBride, chairman of the Hawaiian Airlines pilots master executive council, said "it's fair to say the parties will enter into negotiations and I do think that we will be able to come to another tentative agreement. But I don't know if it will ratify or not. I'm sure it will be another close vote."

Hawaiian pilots, angry in particular over management bonuses, last month narrowly voted down a tentative agreement that would have changed pilot work rules, but given them 2 percent raises for each year of the proposed three-year contract. The tentative agreement also would have sidestepped the contentious issue of the pilots' retirement plan until 2012.

When the pilots voted against the tentative agreement, Hawaiian officials once again asked Judge Robert Faris to impose contract terms that would raise pilots' pay only 1 percent for each of three years and create a two-tier retirement plan.

Faris said yesterday in court that he thought that at least one of the contract proposals was fair, but did not say which one.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or at 525-8085.