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The Honolulu Advertiser
Posted on: Saturday, May 10, 2008

PAY ON THE WAY
Aloha cargo workers to get back pay from buyer

Advertiser Staff

Hawaii news photo - The Honolulu Advertiser

Aloha Airlines cargo pilots waited as workers loaded planes at Honolulu International Airport last week. They have not been paid since mid-April — and won't be until the May 14 purchase of the operation.

JOAQUIN SIOPACK | The Honolulu Advertiser

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Aloha Airlines' lender has agreed to pay the carrier's cargo employees for work done since the middle of April.

Aloha's pilots union had complained that they have not been paid since the middle of last month and that their medical coverage was cut off at the end of March.

During a bankruptcy hearing Wednesday, GMAC Commercial Finance LLC agreed to pay the pilots after the sale of Aloha Cargo is completed on May 14.

But John Dean, an attorney for the Air Line Pilots Association, said it's not clear whether GMAC will pay medical premiums and other benefits owed to pilots since April 16.

"Everything is somewhat unsettled at the moment," Dean said.

Dean added that the union is in contract negotiations with the cargo division's buyer, Seattle-based Saltchuk Resources Inc.

Saltchuk said it plans to hire 35 to 40 of Aloha's pilots but has not said how much the pilots will be paid or what their work conditions will be, said Dean. Aloha's court-appointed trustee has moved to reject the union contracts of the 300 cargo employees.

Aloha was the state's second-largest carrier before it abruptly shut down its passenger service on March 31 amid bankruptcy proceedings. The closing resulted in the loss of 1,900 jobs.

"Our pilots are flying without pay, without any guarantee when and if they will receive compensation," said Capt. John Riddel of the Aloha Airlines Master Executive Council.