captpetefam
Takin' one for the Team
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NWA makes case to void contracts
A federal bankruptcy judge implored Northwest Airlines and its unions to reach agreements at the negotiating table.
Liz Fedor, Star Tribune Last update: January 18, 2006 – 1:03 AM
http://www.startribune.com/1778/story/126449.html
NEW YORK - Northwest Airlines used an onslaught of numbers in bankruptcy court Tuesday to buttress its case for replacing the labor contracts with its pilots and flight attendants with new agreements offering lower pay for more work.
U.S. Bankruptcy Judge Allan Gropper agreed that "substantial concessions" would be needed to save the airline, but he repeatedly told lawyers for management and the unions that he wants them to reach agreements at the negotiating table rather than forcing him to nullify the contracts and impose new terms.
"It is never good when litigation takes over from negotiations," Gropper said.
About 30 uniformed Northwest pilots appeared in Gropper's courtroom to monitor the first day of the labor trial and to watch their attorneys try to poke holes in Northwest's case.
Gropper suggested to the pilots' attorney that perhaps "they should go next door" and negotiate with Northwest. Richard Seltzer, counsel for the Air Line Pilots Association (ALPA), assured the judge that another group of pilots was meeting with Northwest at another New York location.
Mark McClain, chairman of Northwest ALPA, said in an interview that both sides have been exchanging proposals, but the parties were not close to a deal Tuesday.
"We have separate visions for what the future of Northwest will look like," McClain said. Northwest has dropped its demand to create a separate company for work on aircraft with 77 to 100 seats. But McClain said the carrier still is pressing hard to narrow the Northwest pilots' scope of flying; the company wants a subsidiary to fly aircraft with fewer than 77 seats.
"It still involves significant outsourcing from what is allowed in our current contract," McClain said.
Seltzer told the court that management could take a safe course and reach a fair, negotiated agreement with the pilots union. Or, he said, the company could continue to "overreach" on its requests and "risk disaster." Northwest is attempting to reduce its total labor costs by $1.4 billion a year and wants the pilots to provide $612 million of that savings.
Brian Leitch, Northwest's attorney, told the judge that the pilots union and the Professional Flight Attendants Association (PFAA) both have raised the threat of strikes if they can't reach agreements and contract terms are imposed on them.
At this stage, the unions' leaders have not asked their members to take strike authorization votes.
But Leitch said that if strike plans move forward, he will ask the court for an injunction to block a strike. He also would argue that the Railway Labor Act, which governs airline labor negotiations, does not permit a strike under these circumstances.
Karen Schultz, a PFAA executive board member, said the union's negotiating team has made substantial movement to try to forge a deal with Northwest. Northwest said it needs $195 million in annual labor savings from the flight attendants, and Schultz said the union has offered cuts worth $192 million.
Those flight attendants' concessions include double-digit pay cuts and other "painful" changes, she said.
However, union leaders continue to oppose Northwest's proposal to outsource many flight attendant jobs to foreign nationals, Schultz said.
Leitch said that Northwest must reduce its workforce costs because it has been paying an average of $103,564 a year for employees' wages and benefits. That's in contrast to low-cost airlines, which paid an average of $62,510 per employee. Northwest wants to reduce its per-employee cost to $77,478 a year, he said.
In bankruptcy, Gropper said, the stakeholders need to find "a repair that holds up and works." He implored the parties to embrace solutions that will avoid a second bankruptcy -- a reference to US Airways.
The International Association of Machinists said Saturday that it would submit a Northwest contract offer to members for a vote, but reported Tuesday that it was still in talks with Northwest over increases in the use of part-time workers.
Liz Fedor • 612-673-7709
http://www.startribune.com/1778/story/188523.html
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I know that I'm going to get morons like YourPilotFriend rippin' on me but it seems like a pretty good deal for both sides to consider. I DON'T WANT a NewCo flying NWA stuff. I WANT NWA Pilots flying more planes. But I also want some growth down here as well.
Since there is no way a NWA pilot can fly a 75 seat airplane and make it profitable, why not let us regional pilots fly regional airplanes and have the NWA guys flying things 77 seats and above. It just seems like a reasonable middle ground. I know reason isn't always encouraged in the airlines but this agreement just seems to make the most sense so far.
Cya,
CP
A federal bankruptcy judge implored Northwest Airlines and its unions to reach agreements at the negotiating table.
Liz Fedor, Star Tribune Last update: January 18, 2006 – 1:03 AM
http://www.startribune.com/1778/story/126449.html
NEW YORK - Northwest Airlines used an onslaught of numbers in bankruptcy court Tuesday to buttress its case for replacing the labor contracts with its pilots and flight attendants with new agreements offering lower pay for more work.
U.S. Bankruptcy Judge Allan Gropper agreed that "substantial concessions" would be needed to save the airline, but he repeatedly told lawyers for management and the unions that he wants them to reach agreements at the negotiating table rather than forcing him to nullify the contracts and impose new terms.
"It is never good when litigation takes over from negotiations," Gropper said.
About 30 uniformed Northwest pilots appeared in Gropper's courtroom to monitor the first day of the labor trial and to watch their attorneys try to poke holes in Northwest's case.
Gropper suggested to the pilots' attorney that perhaps "they should go next door" and negotiate with Northwest. Richard Seltzer, counsel for the Air Line Pilots Association (ALPA), assured the judge that another group of pilots was meeting with Northwest at another New York location.
Mark McClain, chairman of Northwest ALPA, said in an interview that both sides have been exchanging proposals, but the parties were not close to a deal Tuesday.
"We have separate visions for what the future of Northwest will look like," McClain said. Northwest has dropped its demand to create a separate company for work on aircraft with 77 to 100 seats. But McClain said the carrier still is pressing hard to narrow the Northwest pilots' scope of flying; the company wants a subsidiary to fly aircraft with fewer than 77 seats.
"It still involves significant outsourcing from what is allowed in our current contract," McClain said.
Seltzer told the court that management could take a safe course and reach a fair, negotiated agreement with the pilots union. Or, he said, the company could continue to "overreach" on its requests and "risk disaster." Northwest is attempting to reduce its total labor costs by $1.4 billion a year and wants the pilots to provide $612 million of that savings.
Brian Leitch, Northwest's attorney, told the judge that the pilots union and the Professional Flight Attendants Association (PFAA) both have raised the threat of strikes if they can't reach agreements and contract terms are imposed on them.
At this stage, the unions' leaders have not asked their members to take strike authorization votes.
But Leitch said that if strike plans move forward, he will ask the court for an injunction to block a strike. He also would argue that the Railway Labor Act, which governs airline labor negotiations, does not permit a strike under these circumstances.
Karen Schultz, a PFAA executive board member, said the union's negotiating team has made substantial movement to try to forge a deal with Northwest. Northwest said it needs $195 million in annual labor savings from the flight attendants, and Schultz said the union has offered cuts worth $192 million.
Those flight attendants' concessions include double-digit pay cuts and other "painful" changes, she said.
However, union leaders continue to oppose Northwest's proposal to outsource many flight attendant jobs to foreign nationals, Schultz said.
Leitch said that Northwest must reduce its workforce costs because it has been paying an average of $103,564 a year for employees' wages and benefits. That's in contrast to low-cost airlines, which paid an average of $62,510 per employee. Northwest wants to reduce its per-employee cost to $77,478 a year, he said.
In bankruptcy, Gropper said, the stakeholders need to find "a repair that holds up and works." He implored the parties to embrace solutions that will avoid a second bankruptcy -- a reference to US Airways.
The International Association of Machinists said Saturday that it would submit a Northwest contract offer to members for a vote, but reported Tuesday that it was still in talks with Northwest over increases in the use of part-time workers.
Liz Fedor • 612-673-7709
http://www.startribune.com/1778/story/188523.html
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
I know that I'm going to get morons like YourPilotFriend rippin' on me but it seems like a pretty good deal for both sides to consider. I DON'T WANT a NewCo flying NWA stuff. I WANT NWA Pilots flying more planes. But I also want some growth down here as well.
Since there is no way a NWA pilot can fly a 75 seat airplane and make it profitable, why not let us regional pilots fly regional airplanes and have the NWA guys flying things 77 seats and above. It just seems like a reasonable middle ground. I know reason isn't always encouraged in the airlines but this agreement just seems to make the most sense so far.
Cya,
CP
WOW.
