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NWA execs request meeting with pilots to discuss labor costs
Liz Fedor
Star Tribune
Published Jan. 30, 2003
Northwest Airlines executives have asked pilots' union leaders to meet with them about a labor cost restructuring plan, but the company declined to provide any details Wednesday.
Will Holman, a spokesman for the Air Line Pilots Association (ALPA), said union leaders expect top management to outline a five-year business plan for the company. Within the next few weeks, the Eagan-based carrier intends to address labor costs in its talks with the pilots, Holman said.
Northwest CEO Richard Anderson, President Doug Steenland and other key executives met with pilot leaders on Tuesday.
"As part of ongoing discussions with our unions, we pledge to brief each union on the current dynamics of our business," said Northwest spokesman Bill Mellon. Tuesday's meeting with ALPA was the first of a series of meetings that will be held with labor groups, Mellon said.
"No specifics have been discussed," Mellon said.
Some employees have speculated that Northwest will ask them for wage concessions.
Anderson repeatedly has said the company is looking at an array of options to cut costs. But in two very public settings, he has declined to embrace or reject wage concessions. This month, he avoided taking a stance on the topic when he testified before a U.S. Senate committee and when he announced a fourth-quarter loss of $488 million.
Northwest, the world's fourth-largest airline, has reduced its operating expenses by $1.2 billion a year after completing five cost-cutting rounds.
This week, the company took two more steps to reduce costs. It announced the closure of maintenance operations in four cities, and it decided to furlough another 60 pilots. Once those layoffs take effect in April and May, the total number of furloughed pilots will rise to 693.
The pilots labor contract is amendable in September, and ALPA leaders are expected to open negotiations in July.
Last summer, Northwest pilots overwhelmingly approved a one-year contract extension. Under that settlement, a 4.5 percent pay raise took effect last September, and a 5.5 percent increase goes into effect Sept. 12.
At the time, union leaders said it would provide pilots with a short-term pay raise, and they hoped there would be "a more stable negotiating environment" in 2003.
But the financial woes in the airline industry have lingered. While Northwest's managers are refining their five-year business plan, ALPA is preparing its own financial analysis of the company. The pilots hired an independent investment banking firm to produce the report, which will be discussed by ALPA's elected leaders in March.
-- Liz Fedor is at [email protected].
Liz Fedor
Star Tribune
Published Jan. 30, 2003
Northwest Airlines executives have asked pilots' union leaders to meet with them about a labor cost restructuring plan, but the company declined to provide any details Wednesday.
Will Holman, a spokesman for the Air Line Pilots Association (ALPA), said union leaders expect top management to outline a five-year business plan for the company. Within the next few weeks, the Eagan-based carrier intends to address labor costs in its talks with the pilots, Holman said.
Northwest CEO Richard Anderson, President Doug Steenland and other key executives met with pilot leaders on Tuesday.
"As part of ongoing discussions with our unions, we pledge to brief each union on the current dynamics of our business," said Northwest spokesman Bill Mellon. Tuesday's meeting with ALPA was the first of a series of meetings that will be held with labor groups, Mellon said.
"No specifics have been discussed," Mellon said.
Some employees have speculated that Northwest will ask them for wage concessions.
Anderson repeatedly has said the company is looking at an array of options to cut costs. But in two very public settings, he has declined to embrace or reject wage concessions. This month, he avoided taking a stance on the topic when he testified before a U.S. Senate committee and when he announced a fourth-quarter loss of $488 million.
Northwest, the world's fourth-largest airline, has reduced its operating expenses by $1.2 billion a year after completing five cost-cutting rounds.
This week, the company took two more steps to reduce costs. It announced the closure of maintenance operations in four cities, and it decided to furlough another 60 pilots. Once those layoffs take effect in April and May, the total number of furloughed pilots will rise to 693.
The pilots labor contract is amendable in September, and ALPA leaders are expected to open negotiations in July.
Last summer, Northwest pilots overwhelmingly approved a one-year contract extension. Under that settlement, a 4.5 percent pay raise took effect last September, and a 5.5 percent increase goes into effect Sept. 12.
At the time, union leaders said it would provide pilots with a short-term pay raise, and they hoped there would be "a more stable negotiating environment" in 2003.
But the financial woes in the airline industry have lingered. While Northwest's managers are refining their five-year business plan, ALPA is preparing its own financial analysis of the company. The pilots hired an independent investment banking firm to produce the report, which will be discussed by ALPA's elected leaders in March.
-- Liz Fedor is at [email protected].
