Judge Blocks Eastern’s Plan for Cutbacks : Layoffs Threaten Unions, Temporary Order Says
A federal judge on Wednesday temporarily blocked Eastern Airlines’ plans to dramatically curtail service and lay off 4,000 workers, heeding complaints from the carrier’s unions that the cutbacks would violate federal labor laws.
U.S. District Judge Barrington D. Parker tentatively scheduled a hearing for today to determine if his temporary restraining order should be extended beyond its 10-day period.
Eastern had planned to cut its service by about 12% as of Aug. 31, leaving it basically serving the country’s East Coast and Latin America. Its work force also would have been reduced by 12%.
But after a 3 1/2-hour hearing, Parker decided that “a sufficient threat of injury to the unions . . . exists, which in the judgment of this court warrants issuance of the temporary restraining order.”
Would Cut 4,000 Jobs
Moments after Parker announced his ruling, Eastern spokesman Robin Matell said the airline would “give an appeal an immediate and serious consideration.”
Eastern planned to shut down almost all of its operations in Kansas City, Mo., which served as the carrier’s hub in the western United States. It also intended to dramatically reduce service in its eastern hub of Philadelphia and to cut service altogether to 14 cities.
In all, it planned to eliminate 140 of its 1,225 daily flights and 4,000 of 32,200 jobs.
Company officials announced the plans July 22, saying that they were needed to help stem large losses.
Michael Madigan, Eastern attorney, told the courtroom that Eastern had lost $68 million at Kansas City in 1987 and $33 million in the first three months of this year. The cuts, he said, were being made for a “business reason.”
But leaders of Eastern’s unions, who have been involved for years in bitter clashes with management, have argued that the reductions were really aimed at weakening the carrier and helping Continental Airlines.
The unions have asserted that management of Texas Air Corp., which owns Continental and Eastern, would like to see Continental prosper because it is non-union and has lower labor costs.
