Court Reverses Layoff Injunction Against Eastern

MIAMI —  A federal appeals court in Washington stayed an injunction Friday that had barred Eastern Airlines from laying off 4,000 employees, allowing the troubled carrier to go forward with its plan as it pleads its case.

“As we hoped, the court of appeals wasted no time in overturning the order of the lower court, which we believed was wrong as a matter of law,” Eastern spokeswoman Karen Ceremsak said.

U.S. District Judge Barrington Parker ruled Tuesday in Washington that Eastern could reduce its flight schedule by 12%, including eliminating service to 14 cities but could not undertake mass layoffs without negotiating with its unions. Eastern asked a federal appeals court Thursday to overturn the injunction.

Judges James L. Buckley and Stephen F. Williams of the U.S. Court of Appeals for the District of Columbia issued the decision Friday night after receiving briefs from the two sides, said Clark Onstad, a vice president of Eastern’s parent company, Texas Air Corp.

Must Post $4.3-Million Bond

The injunction “was dissolved by the court of appeals. It’s a one-paragraph order. The order allows Eastern Airlines to proceed with the furloughs upon the posting of a $4.3-million bond, which is the equivalent to one month’s salary” for the people who would be furloughed, Onstad said.

“The court’s order seems to indicate that it will hear the issue on the merits and decide the issue on the merits within the next month.”

Onstad could not say when or if the layoffs would take place.

“We will be meeting over the weekend with our lawyers to decide how to proceed,” he said. Tuesday morning, when the court reopens, would probably be the first opportunity to post the bond.

The layoffs had been scheduled to take effect Wednesday.

“What the court did tonight is to say that while it hears the appeal, it is lifting the terms of the injunction, allowing Eastern to proceed with its fall schedule and furlough plans,” explained Samuel Issacharoff, a lawyer with the International Assn. of Machinists, one of three unions that has fought moves by Eastern and Texas Air.