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Northwest reportedly plans flight attendant outsourcing
[font=Trebuchet MS, Verdana][size=-2][font=Trebuchet MS, Verdana]By Martin J. Moylan
St. Paul Pioneer Press[/font]
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[font=Times New Roman, Times, serif][size=-1]
ST. PAUL, Minn. — Northwest Airlines, flying while in bankruptcy, wants to position itself to outsource all flight attendant jobs on international flights, as well as all attendant jobs on planes with 100 or fewer seats.
[/size][/font][font=Times New Roman, Times, serif][size=-1]That's the word from the flight attendants' union, which Northwest is leaning on for $195 million in annual wage and other givebacks.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest's outsourcing proposal could eliminate the jobs of thousands of the carrier's 9,800 flight attendants, said Bob Krabbe, assistant contract administrator for the Professional Flight Attendants Association. Many jobs could go overseas to lower-paid foreigners.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"We'll fight this vigorously," he said.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest would not discuss the union's account of the airline's plans, saying it does not comment on contract negotiations.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Currently, Northwest has about 500 flight attendants who are foreign nationals based in Asia. Those attendants are limited to flying south and west of Tokyo, said Krabbe.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Hiring lower-paid foreign flight attendants could fit with Northwest's drive to cut costs.
[/size][/font][font=Times New Roman, Times, serif][size=-1]The airline, which has lost about $3 billion on its operations since the start of 2001, is seeking $1.4 billion in givebacks from its employees.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest flight attendants earn from $19,500 to $48,000 a year, depending on experience. The airline wants to cut their pay by as much as 22 percent. But it's expected that Northwest will soon raise that target.
[/size][/font][font=Times New Roman, Times, serif][size=-1]If the airline doesn't get the concessions it wants at the bargaining table, it can ask the judge overseeing its Chapter 11 bankruptcy to impose new contracts.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Airline records indicate that Northwest's international operations provided about one-third of its passenger revenue — $2.8 billion — in 2004. That's a similar ratio as American, United and Continental airlines. Last year, Northwest's international service accounted for 42 percent of its revenue passenger miles. Revenue passenger miles are the number of miles an airline flies paying passengers.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Outsourcing of aircraft maintenance work has been a trend in the airline industry. It was a major flashpoint in the confrontation between Northwest and its mechanics, who struck the airline Aug. 19. The mechanics' walkout continues, and Northwest is servicing its planes with a mix of replacement workers, outside vendors and managers licensed as aircraft mechanics.
[/size][/font][font=Times New Roman, Times, serif][size=-1]But outsourcing most or all flight attendant jobs on international flights would be an industry first, said Vaughn Cordle, chief analyst with Airline Forecasts, an independent research firm, and a pilot with a major airline.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"No major U.S. airline is doing that," he said.
[/size][/font][font=Times New Roman, Times, serif][size=-1]The PFAA's Krabbe concurs.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"They keep comparing us to United," he said of Northwest management. "But this has never been an issue at United. There's no need for the company to do this to survive. I think they're after the cheapest people they can find."
[/size][/font][font=Times New Roman, Times, serif][size=-1]United, which also is in bankruptcy, this past spring outsourced 50 telephone reservation jobs to India as it looked to trim costs. It already had sent 200 call center jobs to Nova Scotia.
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[font=Trebuchet MS, Verdana][size=-2][font=Trebuchet MS, Verdana]By Martin J. Moylan
St. Paul Pioneer Press[/font]
[/size][/font]
Latest headlines by topic:
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• Airlines
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ST. PAUL, Minn. — Northwest Airlines, flying while in bankruptcy, wants to position itself to outsource all flight attendant jobs on international flights, as well as all attendant jobs on planes with 100 or fewer seats.
[/size][/font][font=Times New Roman, Times, serif][size=-1]That's the word from the flight attendants' union, which Northwest is leaning on for $195 million in annual wage and other givebacks.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest's outsourcing proposal could eliminate the jobs of thousands of the carrier's 9,800 flight attendants, said Bob Krabbe, assistant contract administrator for the Professional Flight Attendants Association. Many jobs could go overseas to lower-paid foreigners.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"We'll fight this vigorously," he said.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest would not discuss the union's account of the airline's plans, saying it does not comment on contract negotiations.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Currently, Northwest has about 500 flight attendants who are foreign nationals based in Asia. Those attendants are limited to flying south and west of Tokyo, said Krabbe.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Hiring lower-paid foreign flight attendants could fit with Northwest's drive to cut costs.
[/size][/font][font=Times New Roman, Times, serif][size=-1]The airline, which has lost about $3 billion on its operations since the start of 2001, is seeking $1.4 billion in givebacks from its employees.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Northwest flight attendants earn from $19,500 to $48,000 a year, depending on experience. The airline wants to cut their pay by as much as 22 percent. But it's expected that Northwest will soon raise that target.
[/size][/font][font=Times New Roman, Times, serif][size=-1]If the airline doesn't get the concessions it wants at the bargaining table, it can ask the judge overseeing its Chapter 11 bankruptcy to impose new contracts.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Airline records indicate that Northwest's international operations provided about one-third of its passenger revenue — $2.8 billion — in 2004. That's a similar ratio as American, United and Continental airlines. Last year, Northwest's international service accounted for 42 percent of its revenue passenger miles. Revenue passenger miles are the number of miles an airline flies paying passengers.
[/size][/font][font=Times New Roman, Times, serif][size=-1]Outsourcing of aircraft maintenance work has been a trend in the airline industry. It was a major flashpoint in the confrontation between Northwest and its mechanics, who struck the airline Aug. 19. The mechanics' walkout continues, and Northwest is servicing its planes with a mix of replacement workers, outside vendors and managers licensed as aircraft mechanics.
[/size][/font][font=Times New Roman, Times, serif][size=-1]But outsourcing most or all flight attendant jobs on international flights would be an industry first, said Vaughn Cordle, chief analyst with Airline Forecasts, an independent research firm, and a pilot with a major airline.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"No major U.S. airline is doing that," he said.
[/size][/font][font=Times New Roman, Times, serif][size=-1]The PFAA's Krabbe concurs.
[/size][/font][font=Times New Roman, Times, serif][size=-1]"They keep comparing us to United," he said of Northwest management. "But this has never been an issue at United. There's no need for the company to do this to survive. I think they're after the cheapest people they can find."
[/size][/font][font=Times New Roman, Times, serif][size=-1]United, which also is in bankruptcy, this past spring outsourced 50 telephone reservation jobs to India as it looked to trim costs. It already had sent 200 call center jobs to Nova Scotia.
[/size][/font]