General Lee
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- Aug 24, 2002
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NWA pilots ready to take cuts
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines' union pilots are willing to be the first group of employees to give the struggling carrier the wage and other labor-cost breaks it says it needs to turn itself around.
But the pilots would expect stock, enhanced job security and other rewards for going first — and striking a deal before a bankruptcy becomes a real possibility for the Eagan-based airline, the leader of the pilots' union said Wednesday. And they expect other employees to follow them in making sacrifices that bring their wages and work rules toward current industry standards.
"The pilots of Northwest Airlines are not interested in taking long-term pay cuts while everyone else sits on the sidelines and watches,'' said Mark McClain, union executive council chairman for the Northwest Airlines Air Line Pilots Association. "We saw a situation at Eastern (Airlines) in the '80s, where the pilots took pay cuts and the mechanics got raises. That is very, very damaging for long-term viability."
Pilots are weighing a proposal to give Northwest $200 million a year in labor savings through 2006. The savings would flow primarily from wage reductions and work-rule changes.
At Northwest, pilots start at about $35,000 annually. The most-senior pilots can make $225,000 or so a year.
On Wednesday, McClain and other union leaders discussed the proposal with some 200 Northwest pilots at a Bloomington hotel. More meetings are coming in the next few weeks. If the proposal wins strong support among rank-and-file members, it likely will be put on the bargaining table.
Pilots would expect to be rewarded for sacrifices and leadership, McClain said.
"We will be looking for a piece of the action,'' he said. "We have taken stock before. We would expect stock and profit sharing and some job security provisions. … If we help the airline avoid bankruptcy, there should be a premium in it for us and we expect there will be."
Northwest has promised that management will make financial sacrifices once one union agrees to give it acceptable cost breaks, McClain said.
If other unions do not make fair sacrifices, the pilots' proposal would have the union back at the bargaining table by the end of 2005 to address that and other issues, McClain noted.
"Our analysis has shown that pilots and management alone can't solve the problems facing Northwest,'' McClain said. "We are tying to find time (for the company) to refinance debt, bridge to a better revenue environment and allow time for contract negotiations with other employee groups."
If the pilots move down toward industry compensation averages, so should other employees, McClain said.
"The pilot group at Northwest recognizes that pilot costs are at the higher end of the industry,'' he said. "But we don't feel Northwest pilots should be singled out. We are willing to make adjustments to provide Northwest with competitive pilot costs. But we're not going to solve the problem ourselves. It will take everybody."
Northwest is in contract talks with the union representing sales agents, baggage handlers and other ground workers. But contracts with the mechanics' and flight attendants' unions are not amendable until next year. And those unions have said they're not interested in discussing concession with Northwest and won't open up their contracts early.
The pilots are contemplating labor cost cuts that fall far short of those sought by Northwest, which has shed 17,000 jobs and lost nearly $2.2 billion on its operations in the past three years.
In February of last year, the airline asked pilots for about $440 million in annual wage and other concessions over 6½ years.
McClain dismissed that pitch as a management wish list that would place the airline's pilot costs below those of its main rivals.
The airline contends it needs to shave its labor costs by nearly $1 billion a year to compete with low-fare carriers such as Southwest and JetBlue, as well as traditional rivals such as American and United, which have extracted billions of dollars in concessions from their union workers.
In the fourth quarter of 2003, Northwest had a labor cost per available seat mile of 4.2 cents, compared with 3.7 cents for United, 3.6 cents for American and 3.4 cents for Continental.
Notice that the NW pilots will take cuts if EVERYONE participates. And, they are treating it like an investment. Hmmmmm. They can have the money now or wait it out--like us.
Bye Bye--General Lee
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines' union pilots are willing to be the first group of employees to give the struggling carrier the wage and other labor-cost breaks it says it needs to turn itself around.
But the pilots would expect stock, enhanced job security and other rewards for going first — and striking a deal before a bankruptcy becomes a real possibility for the Eagan-based airline, the leader of the pilots' union said Wednesday. And they expect other employees to follow them in making sacrifices that bring their wages and work rules toward current industry standards.
"The pilots of Northwest Airlines are not interested in taking long-term pay cuts while everyone else sits on the sidelines and watches,'' said Mark McClain, union executive council chairman for the Northwest Airlines Air Line Pilots Association. "We saw a situation at Eastern (Airlines) in the '80s, where the pilots took pay cuts and the mechanics got raises. That is very, very damaging for long-term viability."
Pilots are weighing a proposal to give Northwest $200 million a year in labor savings through 2006. The savings would flow primarily from wage reductions and work-rule changes.
At Northwest, pilots start at about $35,000 annually. The most-senior pilots can make $225,000 or so a year.
On Wednesday, McClain and other union leaders discussed the proposal with some 200 Northwest pilots at a Bloomington hotel. More meetings are coming in the next few weeks. If the proposal wins strong support among rank-and-file members, it likely will be put on the bargaining table.
Pilots would expect to be rewarded for sacrifices and leadership, McClain said.
"We will be looking for a piece of the action,'' he said. "We have taken stock before. We would expect stock and profit sharing and some job security provisions. … If we help the airline avoid bankruptcy, there should be a premium in it for us and we expect there will be."
Northwest has promised that management will make financial sacrifices once one union agrees to give it acceptable cost breaks, McClain said.
If other unions do not make fair sacrifices, the pilots' proposal would have the union back at the bargaining table by the end of 2005 to address that and other issues, McClain noted.
"Our analysis has shown that pilots and management alone can't solve the problems facing Northwest,'' McClain said. "We are tying to find time (for the company) to refinance debt, bridge to a better revenue environment and allow time for contract negotiations with other employee groups."
If the pilots move down toward industry compensation averages, so should other employees, McClain said.
"The pilot group at Northwest recognizes that pilot costs are at the higher end of the industry,'' he said. "But we don't feel Northwest pilots should be singled out. We are willing to make adjustments to provide Northwest with competitive pilot costs. But we're not going to solve the problem ourselves. It will take everybody."
Northwest is in contract talks with the union representing sales agents, baggage handlers and other ground workers. But contracts with the mechanics' and flight attendants' unions are not amendable until next year. And those unions have said they're not interested in discussing concession with Northwest and won't open up their contracts early.
The pilots are contemplating labor cost cuts that fall far short of those sought by Northwest, which has shed 17,000 jobs and lost nearly $2.2 billion on its operations in the past three years.
In February of last year, the airline asked pilots for about $440 million in annual wage and other concessions over 6½ years.
McClain dismissed that pitch as a management wish list that would place the airline's pilot costs below those of its main rivals.
The airline contends it needs to shave its labor costs by nearly $1 billion a year to compete with low-fare carriers such as Southwest and JetBlue, as well as traditional rivals such as American and United, which have extracted billions of dollars in concessions from their union workers.
In the fourth quarter of 2003, Northwest had a labor cost per available seat mile of 4.2 cents, compared with 3.7 cents for United, 3.6 cents for American and 3.4 cents for Continental.
Notice that the NW pilots will take cuts if EVERYONE participates. And, they are treating it like an investment. Hmmmmm. They can have the money now or wait it out--like us.
Bye Bye--General Lee
