Northwest Airlines claims to have reached interim labor cost savings
agreements with the Air Lines Pilots Association and the Professional
Flight Attendants Association.
The ALPA Master Executive Council agreed to temporary pay and other
reductions of $215 million on an annualized basis and PFAA leaders agreed to
cuts of $117 million. The ALPA agreement is subject to membership
Northwest also confirmed that it has reached tentative agreements on
permanent wage and benefit reductions with employees represented by the
Aircraft Technical Support Association (ATSA) and the Northwest Airlines
Meteorology Association (NAMA). The airline hopes to reach an agreement with
the Transport Workers Union of America (TWU), shortly.
The airline was unable to reach an interim agreement with the
International Association of Machinists and Aerospace Workers’ (IAM)
leadership and consequently has filed a Section 1113(e) motion with the U.S.
Bankruptcy Court for the Southern District of New York that seeks temporary
wage and benefit reductions of $114 million from that union. Northwest has
asked for a mid-November hearing date.
“All of our union leaders understand the need for labor cost reductions
and this interim agreement with ALPA and PFAA will provide additional time to
reach final agreements while providing Northwest Airlines with the immediate
costs savings that it requires,” said Doug Steenland, president and chief
Northwest and the IAM are continuing to negotiate a permanent cost
reduction agreement as well.
Steenland continued, “We are pleased to have reached tentative contract
agreements with the Aircraft Technical Support Association and Northwest
Airlines Meteorology Association and look forward to reaching an agreement
with leaders of the Transport Workers Union of America in the near future.”
“These new contracts, along with salaried and management pay cuts
implemented last December and also planned for next month, as well as labor
cost savings achieved through our new aircraft maintenance program, are key
steps in Northwest’s efforts to achieve a competitive labor cost structure”,