Northwest Airlines has reached a tentative agreement with the
Aircraft Mechanics Fraternal Association to end an ongoing labor dispute
with the airline’s technicians. A
membership ratification vote will be conducted during the next 30 days.
The agreement, in part, provides striking
employees with the option of accepting layoff status and receiving one week of
layoff pay per year of service, up to a maximum of five weeks, or employees may
leave Northwest and receive one week of separation pay per year of service, up
to a maximum of ten weeks.
Employees accepting layoff will be
entitled to remain on furlough status for two years from the signing date of
The positions of current Northwest
technicians will not be affected by the proposed agreement. Striking employees who
accept layoff status may bid on open technician positions.
The agreement maintains the necessary $203
million in annual labor costs savings from AMFA-represented employees.
Northwest said that if the agreement was
ratified by AMFA members, the airline would withdraw appeals of state
unemployment compensation determinations, thereby ensuring that members now
receiving benefits would not be subject to having those benefits recouped
should Northwest’s appeal be successful.