Northwest Airlines is involved in negotiating with its unions to
secure $1.4 billion in labor cost savings. The company hopes to achieve these cost
savings through consensual agreements with its unions.In line with previous announcements, Northwest filed an 1113(c) motion with the U.S.
Bankruptcy Court for the Southern District of New York to secure labor cost
savings if the company and its unions do not achieve consensual agreements.
The 1113(c) motion was filed on Oct. 12 and the hearing is scheduled to
commence on Nov. 16.
The company has been in discussions with The Air Lines Pilots Association
(ALPA), The International Association of Machinists and Aerospace Workers
(IAM), and The Professional Flight Attendants Association (PFAA) regarding the
possibility of extending the deadline for the Section1113(c) hearing to mid-
January in order to allow all parties more time to reach consensual labor cost
saving agreements. In light of Northwest’s significant financial challenges,
the company has advised ALPA, IAM and PFAA that interim financial relief of
approximately 60 percent of the $1.4 billion target would have to go into
effect in mid-November to allow for an extension of the 1113(c) hearing.