General Lee
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Northwest pilots consider cost concessions
CHRIS WILLIAMS
Associated Press
MINNEAPOLIS - Union leaders for Northwest Airlines pilots have voted to cut pilot labor costs by $200 million a year through 2006, or about half what the airline sought from the union.
Representatives of the Air Line Pilots Association International for Northwest voted unanimously Sunday to recommend the deal to its 6,300 NWA pilots.
Northwest Airlines had no comment on the proposal, said Kurt Ebenhoch, airline spokesman.
The union didn't specify how its plan would cut $200 million in pilot labor costs. But the union leaders described the concessions as an investment in NWA, and said the pilots hoped to get assurances they would "share in the company's future success" in return, the union said.
Northwest management told ALPA leaders just over a year ago that the union needed to reduce pilot labor costs by $442 million a year through cuts in pay and benefits, changes in work rules and additional layoffs.
Northwest chief executive Richard Anderson has previously expressed support for a profit-sharing plan.
A union statement said that after an extensive analysis of the airline's finances, the union leaders decided that accepting the cuts now in return for a potential payoff later was better than traditional contract negotiations.
"We believe an investment by NWA pilots can have a meaningful effect to help ensure NWAs future success while also providing future benefits for NWA pilots," said Mark McClain, Northwest ALPA chairman. "Although we believe an investment is warranted, we do not believe pilot cost reductions of the magnitude being sought by Northwest management are necessary."
Detailed information regarding the agreement will be presented to rank-and-file pilots over the next few weeks. Union leaders will evaluate pilot response and give direction to the negotiating committee for an April meeting.
ALPA and NWA management began contract negotiations in July 2003.
Northwest pilot leaders are meeting management about halfway on cutbacks, Joel Denney, an airline analyst for Piper Jaffray & Co. in Minneapolis, told the Star Tribune of Minneapolis. The union action was "a great first step," he said.
Denney said, "The pilots tend to be the ones that take a leadership position in difficult decisions like this."
The terrorist attacks, recession, Iraq war and severe acute respiratory syndrome have all contributed to a decline in passenger traffic on Northwest. The Eagan-based carrier has lost $2.2 billion on its airline operations during the past three years.
Northwest has been trying to restructure its labor costs. The Eagan-based airline is seeking to cut companywide labor costs by $950 million per year and is seeking significant cuts from all its labor unions.
In morning trading on the Nasdaq Stock Market, Northwest shares were down 52 cents, or 5.2 percent, to $9.58.
Hmmmmm. They offer about $200 million, and in our FIRST offer--ours is about $300 million, and I bet we would go higher and include some benies. They also want it in the form of an investment----like we do---sounds smart to me.
Bye Bye--General Lee
CHRIS WILLIAMS
Associated Press
MINNEAPOLIS - Union leaders for Northwest Airlines pilots have voted to cut pilot labor costs by $200 million a year through 2006, or about half what the airline sought from the union.
Representatives of the Air Line Pilots Association International for Northwest voted unanimously Sunday to recommend the deal to its 6,300 NWA pilots.
Northwest Airlines had no comment on the proposal, said Kurt Ebenhoch, airline spokesman.
The union didn't specify how its plan would cut $200 million in pilot labor costs. But the union leaders described the concessions as an investment in NWA, and said the pilots hoped to get assurances they would "share in the company's future success" in return, the union said.
Northwest management told ALPA leaders just over a year ago that the union needed to reduce pilot labor costs by $442 million a year through cuts in pay and benefits, changes in work rules and additional layoffs.
Northwest chief executive Richard Anderson has previously expressed support for a profit-sharing plan.
A union statement said that after an extensive analysis of the airline's finances, the union leaders decided that accepting the cuts now in return for a potential payoff later was better than traditional contract negotiations.
"We believe an investment by NWA pilots can have a meaningful effect to help ensure NWAs future success while also providing future benefits for NWA pilots," said Mark McClain, Northwest ALPA chairman. "Although we believe an investment is warranted, we do not believe pilot cost reductions of the magnitude being sought by Northwest management are necessary."
Detailed information regarding the agreement will be presented to rank-and-file pilots over the next few weeks. Union leaders will evaluate pilot response and give direction to the negotiating committee for an April meeting.
ALPA and NWA management began contract negotiations in July 2003.
Northwest pilot leaders are meeting management about halfway on cutbacks, Joel Denney, an airline analyst for Piper Jaffray & Co. in Minneapolis, told the Star Tribune of Minneapolis. The union action was "a great first step," he said.
Denney said, "The pilots tend to be the ones that take a leadership position in difficult decisions like this."
The terrorist attacks, recession, Iraq war and severe acute respiratory syndrome have all contributed to a decline in passenger traffic on Northwest. The Eagan-based carrier has lost $2.2 billion on its airline operations during the past three years.
Northwest has been trying to restructure its labor costs. The Eagan-based airline is seeking to cut companywide labor costs by $950 million per year and is seeking significant cuts from all its labor unions.
In morning trading on the Nasdaq Stock Market, Northwest shares were down 52 cents, or 5.2 percent, to $9.58.
Hmmmmm. They offer about $200 million, and in our FIRST offer--ours is about $300 million, and I bet we would go higher and include some benies. They also want it in the form of an investment----like we do---sounds smart to me.
Bye Bye--General Lee
