NWA 1113 Update - One more Day

[Going2Baja]

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Bargaining Since the 1113(c) Extension Agreement[/FONT]
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Since the completion of the interim agreement in late November 2005, the Negotiating Committee has

been working almost nonstop in an effort to reach a consensual agreement with management. We have
made considerable progress but there are still many open issues that need to be resolved before any deal
can be tentatively agreed to ("TA’d"). As many of you are aware from past negotiations, the time required
to negotiate a new contract in a good bargaining environment usually ranges between 18 to 24 months.
We are attempting to complete this task, in a terrible environment, in approximately two months. At
times, the size of this task has made it seem impossible to achieve. Without the additional time allowed
by the interim agreement that extended the 1113(c) process, a negotiated consensual agreement would be
impossible.
Over the last two months the negotiation has centered, in large part on Scope, including small jets "SJs,"
successorship, fragmentation, and the transaction protections provided in Section 1 of our contract. In
management’s 1113(c) filing, it sought to in effect eliminate most of the current contract protections.
These are very complex provisions that we believe are necessary to protect the pilot group from
significant threats as the restructuring of our carrier continues. As a result, we have made retention of
these items an emphasis in this round of negotiations and have made significant progress in bringing most
of these issues to closure. With that said several issues remain and we continue to work to resolve them.​

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Small Jets​

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Your Negotiating Committee has written to you many times about SJs and our desire to limit the erosion​

of flying (outsourcing) from our contract and to try and recognize future trends in this area and be as
responsive as possible to them. Our goal is to deal with future threats in a proactive manner in an effort to
properly position ourselves for these trends rather than constantly having to react to management’s
outsourcing initiatives, both at NWA and elsewhere in the industry.
An additional goal of this negotiation has been to do as much as possible to create job opportunities for
our junior pilots who may be facing at least some level of potential layoffs. This has not been an easy​

NWA MEC Negotiating Committee - 2 - Feb. 21, 2006​

task. In response to this problem as well as to management’s NEWCO proposal, we developed our NStar​

proposal. As we conceived it, NStar would fly SJs from 51-100 seats as a cost competitive division of
NWA. For a number of reasons, some of which remain a mystery to us, management rejected our NStar
plan. As we have indicated in previous issues of​

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[FONT=TimesNewRoman,Italic]Across the Table[/FONT], we also rejected management's​

NEWCO plan that would outsource an unlimited number of 51-100 seat jets flying at a newly created

affiliate of NWA. Neither party had much interest in the other’s plan for resolving this issue. As a result,

both parties began to look for alternative solutions to this problem. What may result is a compromise that
may work for both NWA pilots and management.
Over the last few years, mainline carriers have endured the continual erosion of flying from the mainline
operation by transferring the flying of ever larger aircraft to feeder carriers. Since NWA is one of the
largest operators of 100-seat aircraft, the increase in size of the aircraft allowed to be flown by feeders is a
significant issue to NWA pilots. When we considered this issue against the backdrop of the aging DC-9
fleet, which we all recognize is facing its life limit without a known replacement strategy, our level of
concern grew even higher.
Absent action on our part, as things progress in this industry we could be faced with the future loss of a
large portion of our domestic flying and the pilot jobs that go with it. As a result, we determined that an
important goal for us to accomplish in this negotiation was to capture the flying in the 70- to-100 seat
range once and for all. We would accomplish this by developing rates and work rules that would give
management an incentive to order these aircraft within the term of this contract. We believe we have
created a solution that will accomplish that goal by limiting the outsourcing of aircraft in the 70-seat
range and below in a manner similar to what other pilot groups have done and by creating triggers and
incentives that will require the larger SJs to be put into active service here at Northwest Airlines and be
flown by NWA pilots. In addition, we have attempted to negotiate a structure that will allow laid off
pilots to have maximum access to jobs at any feeder carrier allowed to operate aircraft in the 70-seat
capacity range.
The small jet negotiations are ongoing. As a result, further details will be available if we reach a tentative
agreement on SJs and possibly the remainder of Section 1. The purpose of this discussion is to give you
information about how this negotiation has progressed, review our priorities regarding the SJ negotiation
and to introduce you to the idea that, in order to achieve our negotiating priorities (getting real deliveries
of SJs greater then 70 seats to be flown by NWA pilots as discussed above), we may need to allow a
limited number of SJs in the 70-seat range to be flown by feeder carriers in exchange for NWA pilots
flying large SJs.​

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Transactions, Fragmentation and Successorship Protections​

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In our view, given the current environment within our industry in general and specifically the current​

situation of our company, protections related to transactions, fragmentation and successorship are
probably among the most important of the protections embodied in Section 1 of our contract. As a result,
we have spent a large portion of the last two months working diligently to clarify and maintain our
contractual rights and protections in this area. It is anyone’s guess what the future may hold for the
restructured Northwest following our emergence from bankruptcy court protection. However, given the
landscape and the recent experience of USAirways, a transaction of some sort involving NWA cannot be
discounted. Although Section 1 is not yet TA’d the issues have been narrowed substantially and our core
protections in the areas of transactions, fragmentation and successorship remain largely in tact.​

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Outlook​

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The Negotiating Committee has met with management for 42 of the last 45 consecutive days and will​

continue to meet with management for as long as progress is being made or in our view can be made. We
continue to believe that a consensual agreement is the best alternative for the NWA pilot group and for all​

NWA MEC Negotiating Committee - 3 - Feb. 21, 2006​

of the stakeholders of Northwest Airlines. Hopefully, management shares this view and we will be able to​

reach an acceptable agreement that the Negotiating Committee can TA, bring to the MEC and ultimately
the pilot group for consideration.
If that is not possible, we must be prepared to consider our options for self-help. As things develop the
Negotiating Committee, your MEC officers and LEC representatives will continue to keep you informed.
There are many rumors that circulate on the line and in the crew room about the status of negotiations. As
we approach what may be the endgame of this negotiation, try to resist spreading unsubstantiated rumors
and look to your representatives, MEC communications and the Pilot to Pilot network for the most up to
date and accurate information.​

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[320AV8R]

FWIW- It ain't over till it's over.


Northwest CEO: Pilots, management resolve key differences

There's a deal in principle on expanding the regional jet fleet and saving jobs, Northwest's CEO said. But pay issues still loom as a Friday deadline approaches.

Liz Fedor, Star Tribune

Last update: February 23, 2006 - 12:39 AM

There have been breakthroughs on two key issues involving Northwest Airlines and its pilots, the carrier's CEO said Wednesday.

Doug Steenland told the Star Tribune that management and pilots have agreed to a framework that would allow Northwest to increase regional jet flying and save pilots' jobs.

"It addresses the pilots' concerns over jobs, outsourcing and making sure that the replacement aircraft for the DC-9 gets flown [by Northwest pilots], and that represents significant progress," Steenland said. He called the issue of who flies regional jets the "most controversial" in Northwest's negotiations with the Air Line Pilots Association (ALPA).

Steenland added that "the lion's share" of job-protection issues have been resolved, including saving pilot jobs in the event of a merger, the sale of part of Northwest's business or code-sharing arrangements with other airlines.

The pilots union and Northwest have been locked in intense negotiations since early January, and the pilots are taking a strike authorization vote that concludes Tuesday. If the pilots and flight attendants fail to reach agreements with Northwest by Friday, a bankruptcy judge could void their existing labor contracts and allow the airline to impose new pay rates and work rules. U.S. Bankruptcy Judge Allan Gropper also could give the parties a second extension to conclude their talks.

Steenland has maintained a low public profile during the recent negotiations. He emphasized in an interview that management and the pilots union have come together on "very difficult issues."

He indicated that he sees a path to an agreement.

Northwest intends to replace its DC-9s, which are more than 30 years old, with Bombardier or Embraer regional jets. The company wanted to shift those regional jets to a new subsidiary, but the pilots have said there will be no deal if pilot jobs are outsourced.

"This regional jet flying issue is so crucial to our careers that any negotiated
agreement that would lose any of that flying would be a significant setback for our pilots," said Wade Blaufuss, a spokesman for the Northwest branch of ALPA.

Northwest pilots and their families will rally in St. Paul today.

Steenland pledged to continue working with Duane Woerth, president of ALPA
International, to win congressional approval of a bill that would give Northwest more time to make contributions to its underfunded pension plans.

The pilots previously agreed to freeze their pension plan at current benefit levels. They are in negotiations with Northwest concerning the company's contributions to 401(k)-style plans for future retirement benefits.

"Finding a way to maintain the frozen plans is a very significant benefit to Northwest employees, particularly with respect to our pilots," Steenland said.

The pension changes are among several concessions the pilots have accepted. In 2004, the pilots agreed to a 15 percent pay cut. Since mid-November, an additional interim pay cut of about 24 percent has been in effect.

Now, Northwest wants $358 million in annual concessions in a long-term contract.

Steenland acknowledged that "there are still significant open issues that we have to address," including bridging the gap between the two sides on the total concessions.

"We remain hopeful that we'll be able to reach agreement," Steenland said.

Blaufuss said the pilots also want a negotiated deal, an outcome that he stressed depends largely on airline management. "If Northwest does not back off from the remaining open issues, then they can expect us to do what's necessary to defend our careers," Blaufuss said.

Northwest pilots last went on strike in 1998, and many have said they are prepared to walk off the job again this year. The pilots have the ability to shut down the airline.

Negotiators for the Professional Flight Attendants Association are "slowly" moving toward an agreement with management, but the union remains at odds with
Northwest over the hiring of foreign workers, said Andy Damis, PFAA secretary-treasurer.

The union also is still bargaining on job protection issues.

"We want this behind us just as much as the company does," Damis said. He said negotiators have asked why "they still continue to fight us," even though the union has met the airline's demand for $195 million in annual labor concessions.

And ALPA's position....


CHICAGO, Feb 23 (Reuters) - The union representing pilots at bankrupt Northwest Airlines (NWACQ.PK: Quote, Profile, Research) said on Thursday that it had made progress on key issues in labor talks but remains in conflict on others as a court-imposed deadline looms.

Negotiators are racing to reach a deal before Friday when a federal judge is expected to decide whether to allow the airline to void the contracts it has with employee groups that have not made concessions the airline says it needs to survive.

Members of the Air Line Pilots Association are voting on whether to allow union leaders to call a strike if their contract is terminated without a new one in place.

"There has been progress made in some areas," said ALPA spokesman Will Holman. "We still unfortunately remain far apart on many other issues including equity, sick leave and retirement benefits."

The No. 4 U.S. airline, which filed for bankruptcy protection in September, has said it needs $1.4 billion in union give-backs to survive in an industry battered by soaring fuel costs and low-fare competition.

An airline spokesman did not immediately return phone calls seeking comment.

Holman said ALPA and Northwest had reached a possible agreement on the structure of a regional carrier with a fleet of small aircraft the company wants to start.

Pilots had objected to Northwest's proposal, saying it encroaches on the jobs of Northwest pilots, who have the right under their contract to fly all aircraft with 70 seats or more.

The carrier, which is still in talks with its flight attendants, has a tentative labor deal with its 14,000 ground workers. That deal needs membership approval. Northwest also has temporary deals in place with its pilots, flight attendants and ground workers.

 

[boeing747-800]

this is such bullshit!