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Unions Balk at Pinnacle Airs Bid to Void Labor Contracts

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Pinnacle Airlines Corp.'s thousands of pilots and flight attendants are objecting to the airline's bid to scrap their contracts, a move the regional carrier says is necessary to exit bankruptcy protection, Dow Jones Daily Bankruptcy Review reported yesterday. The union representing some 1,800 flight attendants said in a court filing Friday night that Pinnacle has shown no compelling need to cut "by even one penny," its flight-attendant compensation. The Association of Flight Attendants said in a court filing that Pinnacle's flight attendants, far from being overpaid, are "actually below market in their wages, benefits and work rules." Pinnacle's 2,800 pilots, represented by the Air Line Pilots Association, is also protesting the carrier's bid to void their contract. The pilots' objection, unlike their flight attendant colleagues', was filed under seal.