Posted on: Wednesday, February 23, 2005
Hearing postponed as Hawaiian, pilots talk
By Dan Nakaso
Advertiser Staff Writer
A federal bankruptcy court hearing over whether Hawaiian Airlines pilots can be forced to accept a new labor contract was postponed until this morning to let the two sides continue negotiating.
Advertiser library photo Hawaiian attorney Bruce Bennett told U.S. Bankruptcy Judge Robert Faris yesterday at the scheduled start of the hearing that negotiators for Hawai'i's largest airline and the Air Line Pilots Association met through the night Monday and broke off talks about 5:30 or 6 a.m. yesterday.
Faris urged both sides to continue negotiating because the outcome of a hearing could result in a preferential decision for either side — or in a ruling that neither party likes.
"Both sides have good reason to settle this," Faris told attorneys for Hawaiian and the pilots union.
Five of Hawaiian's six unions have reached new contract agreements with the airline, which filed for federal bankruptcy protection in March 2003. Hawaiian's prospective new owner — RC Aviation LLC — wants new contracts in place before Hawaiian emerges from bankruptcy.
The pilots and Hawaiian have been negotiating for a year. The main objection from the pilots is a proposal by Hawaiian's bankruptcy trustee, Josh Gotbaum, that would create a two-tiered pension plan for the pilots.
Hawaiian maintains that the new plan could save Hawaiian retirement costs. The Air Line Pilots Association says it would place greater financial risks on pilots under age 55 who represent the overwhelming majority of Hawaiian's 283 pilots.
Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.
Talks resumed around noon yesterday and continued through the evening.
The pilots union and Hawaiian Airlines have been negotiating for a year. The main objection from the union is a proposal that would create a two-tiered pension plan for pilots.
