With all the focus on the slashing of UAW members’ health care at GM (there’s a more detailed story today in the New York Times), I didn’t get to the recent, also sad, development regarding the folks who have been striking Northwest. This has been a hotly debated topic here–but the situation continues to be dire, as reported yesterday in several media organs, including the story below from the Wall Street Journal. I don’t care how the union is spinning the vote–this is a broad retreat and a signal that this strike is doomed
If you take the deep cuts in health care at GM–and certainly those likely to come now at the other auto companies…after all, they are not going to agree to be at a competitive disadvantage with GM on health care costs–and the steady decline in the fortunes of the Northwest mechanics, it is not a pretty day for labor.
Where does it end?
Mechanics Union
At Northwest
To Allow a Vote
By SUSAN CAREY
Staff Reporter of THE WALL STREET JOURNAL
October 17, 2005
The union representing striking Northwest Airlines mechanics on Friday said it decided to let its members vote on the airline’s current contract offer, which would let only about 500 of the 4,400 union members return to work.
If the terms are accepted in a two-week membership ratification process, the rest would receive four weeks of severance pay.
The Aircraft Mechanics Fraternal Association members struck on Aug. 20 after rejecting a contract offer that would have preserved 2,750 union jobs and given up to 26 weeks of severance to the others. Northwest promptly brought in 1,200 replacement technicians under less generous terms and managed to fly through the job action. The company also outsourced a number of jobs — including heavy maintenance, aircraft cleaning and custodian positions — to third-party vendors, reducing the overall number of positions it needs to fill.
Last month, AMFA negotiators rejected a proposal that would have kept 1,080 jobs and given up to 16 weeks of severance pay to those who would be furloughed. Since then, Northwest has permanently hired more than 500 of the replacement mechanics and is on track to reduce its mechanic costs by more than $200 million a year. The airline, the nation’s fourth-largest by traffic, later amended the terms of employment for the work group, taking away layoff protection, trimming seniority retention and deciding that the new hires don’t have to join the union or pay union dues.
“This is not a sellout by AMFA or your negotiating committee,” the union said in a message to the strikers on Friday. “This is a chance to vote your destiny…When you look at the details, you will be hard-pressed to find anything ‘good.’ ” Some strikers have criticized the union for failing to put the first two contract offers out to a vote. AMFA said seniority will be just one factor in determining who would be hired back.
“We are pleased that the AMFA leadership is giving employees the opportunity vote on the proposed terms of an agreement,” Northwest said in a statement. The airline, based in Eagan, Minn., filed for bankruptcy-court protection on Sept. 14, citing high fuel costs, competition from discount airlines and its inability to win concessions from some of its largest unions.
Last week, Northwest filed papers in U.S. Bankruptcy Court in New York asking the judge to void existing labor agreements for all unions but AMFA if workers don’t voluntarily agree in the coming weeks to $900 million in additional annual givebacks. So far only the pilots and salaried and management workers have made initial concessions, but Northwest now wants more from them and is asking for big cuts from the flight attendants, customer-service agents and ramp workers. Its goal is to pare its overall labor expenses by $1.4 million as part of its plans to slice $2.5 billion from its annual costs….”
