Comair, Flight Attendants Square Off Over Employee Contracts

Comair, a unit of Delta Air Lines Inc., and its flight attendants squared off in a New York bankruptcy court on Tuesday, the second day of hearings devoted to a request by the regional carrier to do away with contracts made with its employees.

Erlanger, Ky., based Comair filed for bankruptcy protection the same day that Delta filed for protection from creditors under Chapter 11 of the bankruptcy laws. The regional carrier has said it needs to reduce wages and benefits of 970 flight attendants as part of a plan to cut $42 million in annual costs, without which the carrier has said it will have to cease operations.

Tuesday's hearing featured testimony from experts called on by the union and the carrier.

"We are trying to align ourselves to compete in the market place," said Joel Kuplack, vice president of human resources and in-flight services at Comair. "The need is to have these groups paid in line with market place."

Separately, talks between the carrier and its flight attendants union were going on early Tuesday in New York and are slated to continue on Thursday and Friday in Washington D.C., according the carrier's spokeswoman Kate Moser.

Comair is asking its 970 flight attendants to agree to cuts in wages and benefits worth $8.9 million. The carrier has already reached an agreement with its pilots for $17.3 million in cost cuts and for $1 million from its mechanics.

A failure to get cost reductions from flight attendants would jeopardize the agreements with Comair's mechanic and pilot unions because these agreements are contingent on the carrier reaching a similar pact with the flight attendants.

By doing away with its employee contracts in court, Comair is looking to impose wage and benefit cuts on flight attendants. The flight attendants, who have threatened to strike over Comair's motion to do away with their contracts, have said they are being asked to give up too much.

"These are not highly paid people," said Norman Weintraub a labor economist who testified on behalf of the flight attendants.

Comair was acquired by Atlanta-based Delta in 2000. The company filed its request to toss out its employee contracts in February. The judge has until April 10 to rule, although that could be extended.

Comair's Kuplack also said on Tuesday the carrier had given a new offer to flight attendants which would achieve the $8.9 million in cost cuts the carrier needs through changes in work rules and other "cost savings reduction ideas."

Comair's Moser later told The Associated Press the alternative proposal is designed to lessen the impact of pay reductions.

Much of Tuesday's hearing was focused on how to measure compensation of the flight attendants, specifically whether or not different arguments posed by both sides consider all aspects of what it costs to employ an individual at Comair.

While both sides tentatively rested their arguments, they may return to court to present additional information to the judge over the compensation of flight attendants.

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