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Court Allows Frontier To Reject Union Contracts
Frontier is held to outsourcing aircraft maintenance only as a last resort.
November 3, 2008
The International Brotherhood of Teamsters said Monday that Frontier Airlines had received court approval to dispense with contracts its workers held with the labor union.
A Denver-based airline operator, Frontier had sought wage concessions as part of a cost-cutting plan along with maintenance-related agreements. The labor union, meanwhile, has been trying to prevent Frontier from outsourcing its repair and upkeep work to El Salvador-based Aeroman.
Judge Robert Drain in the US Bankruptcy Court for the Southern District of New York, however, said Frontier may outsource its aircraft maintenance only as a last resort.
“While the Teamsters do not agree with Judge Drain’s ruling, the ruling does at least anticipate that our mechanics will continue to work on heavy maintenance in Denver,” said Matthew Fazakas, president of Teamsters Local 961, in a statement.
Frontier secured $75 million in debtor in possession financing in July from private equity firm Perseus, which agreed to purchase 79.9% of the reorganized company for $100 million.
A company that displays animals on its planes, Frontier filed Chapter 11 in April.
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