Got an early morning meeting but saw this in today’s Wall Street Journal. More bad news for workers at Northwest. Here’s part of the article:
Northwest Seeks More Concessions
By SUSAN CAREY
Staff Reporter of THE WALL STREET JOURNAL
September 29, 2005
Less than two weeks after filing for bankruptcy-court protection, Northwest Airlines warned three unions that it needs larger concessions from them quickly. The carrier threatened to ask a judge to reject its current contract with one union so the airline could impose terms.
T
he International Association of Machinists union, which represents 14,300 clerical, customer-service and ramp workers, posted the airline’s cost-saving proposals on its Web site, along with a letter from Northwest’s vice president of labor relations. The airline now wants $190 million in annual savings from that group, up from $107 million it was seeking before filing for Chapter 11 in U.S. Bankruptcy Court in New York on Sept. 14.
The Professional Flight Attendants Association, which represents 9,200 Northwest attendants, said earlier this week that Northwest is seeking $195 million in annual savings, up from $143 million before the filing. The airline won’t confirm those numbers. Northwest also intends to furlough 1,400 attendants by January as it shrinks capacity.
The Air Line Pilots Association also received a demand for even greater concessions from Northwest this week, a union spokesman said. He said he wouldn’t disclose the number until it is made available to the 5,100 pilots. The pilots agreed last year to $265 million in givebacks for two years, and Northwest in March said it would need $322 million a year more. That number is now higher still. Northwest already said it plans to furlough 400 pilots by early next year, adding to the 500 currently laid off.
The nation’s fourth-largest airline by traffic said one reason it sought protection from creditors is that its costs aren’t competitive with those of other big airlines that already have restructured in or near bankruptcy-court protection, or with those of discount carriers. Delta Air Lines filed for bankruptcy-court protection the same day and plans to cut its remaining work force by 9,000 workers, or 17%.
Northwest, of Eagan, Minn., had been seeking $1.1 billion in overall annual savings from employees, but that figure now is $1.4 billion and may go higher. It is unclear which combination of changes — layoffs, outsourcing, pay and benefit cuts, tighter work rules — would yield the savings Northwest seeks.
Because its 4,400 mechanics and aircraft cleaners struck last month, Northwest was able to impose new terms on replacement workers it has been using to care for its fleet, thus achieving the $203 million in savings it wanted from that group. Some of the savings are coming from outsourcing more maintenance work to outside vendors and subcontracting aircraft cleaning. Top mechanic pay also has fallen to $26.53 an hour from $36.39 before the strike.”
