A U.S. federal judge ruled that Northwest Airlines Corp. (NWAXQ.PK) flight attendants may not strike or take other job actions until a decision is made on the matter by the bankruptcy court, as stated in this WashingtonPost.com article.
Judge Victor Marrero has ruled in this long-running labor dispute and stated that the union had not gone through all the options for coming to an agreement with the airline. A strike could potentially destroy Northwest and keep them from exiting bankruptcy.
Northwest is the No. 5 U.S. airline and welcomed the decision while the Association of Flight Attendants stated it would appeal in behalf of the 7,300 active Northwest attendants.
Northwest, which filed for bankruptcy protection last September, had asked Marrero to prevent the union from striking, after bankruptcy Judge Allan Gropper denied its request, saying he did not have the authority to do so. Marrero reversed that ruling, saying the lower court had erred on the law.
The union, however, said that by imposing terms unilaterally, the airline had already effectively abandoned mediation.
Labor experts have long debated the issue, noting the lack of precedent to clarify the matter. Bankrupt airlines frequently ask courts to allow them to void labor contracts, but usually reach deals with unions before judges rule.
Including concessions from the flight attendants, Northwest has reached its labor savings target of $1.4 billion of a total of $2.5 billion that it says it needs to exit bankruptcy.
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