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Published on 4/18/2008 in the Prospect News Distressed Debt Daily.

Aloha pilots union threatens to strike amid allegations of contract violations

By Caroline Salls

Pittsburgh, April 18 - The Air Line Pilots Association, International filed a complaint against Aloha Airlines, Inc. Friday in the U.S. Bankruptcy Court for the District of Hawaii, arguing that the union has the right to strike immediately because the airline has allegedly violated some terms of ALPA's collective bargaining agreement.

Specifically, the union said ALPA and the Aloha pilots it represents may choose to strike if no agreement is reached by 12:01 a.m. on April 26.

"ALPA is ready to take any steps necessary to ensure that our contract is upheld by this management," ALPA president John Prater said in a union news release.

"We can't prevent Aloha Airlines from ceasing its passenger operations, but we can prevent this management from unlawfully rejecting the legally binding contract they negotiated with their pilots."

According to the complaint, "the actions of Aloha over the past weeks have unquestionably triggered a major dispute under the Railway Labor Act."

ALPA said the union and its Aloha pilots have offered concessions to the company, but those attempts have been ignored by Aloha's management.

Although the union and pilots plan to continue efforts to resolve the dispute with Aloha, ALPA said in the complaint that "their patience - as Aloha manipulates this situation - has limits."

Friday's complaint seeks an injunction against Aloha's alleged attempts to abolish the ALPA collective bargaining agreement.

The union said the company has violated the terms of the contract by terminating pilots "for the sole purpose of circumventing the furlough provisions set forth in the CBA," recalling pilots out of seniority order, failing to honor successorships and job security provisions, failing to maintain retirement plan contributions and maintain benefits and failing to provide continuing pay and benefits, including medical coverage, upon furlough.

Aloha, a Honolulu-based airline, filed for bankruptcy on March 20. Its Chapter 11 case number is 08-00337.


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