Posted on Wed, Jun. 21, 2006
NWA aims to mend fences
But unions say words ring hollow after steep cuts
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines' relations with its employees have been somewhat strained in recent years. Even CEO Doug Steenland admits it.
That can happen when an airline loses billions of dollars, cuts about 20,000 jobs, replaces its union mechanics, lands in bankruptcy and squeezes wages, benefits and other labor costs by $1.4 billion annually.
But as Northwest works its way through its reorganization and nears its targeted labor savings, Steenland is talking up the potential to "repair and renew" company-employee relations.
Eagan-based Northwest has a "once-in-a-lifetime opportunity" to take the airline to "new heights by fundamentally changing the way we interact with one another," he told managers at a company meeting in St. Paul last week.
"The next five years — and beyond — will be about: respect for one another; listening to one another; openness to new ideas and new ways of doing things; inclusion in decision-making; a shared vision; a shift from 'us versus them' to just 'us;' unchaining the expertise of our co-workers; and recognition and reward for achievement. It's up to us to make those words mean something," Steenland said.
But union leaders say Steenland's words are not matched by actions.
Northwest and its employees really don't have any choice but to move toward less adversarial relations, said Charles Craver, a George Washington University law professor who specializes in labor and employment law.
"If the workers don't work hard for Northwest, Northwest is not going to survive,'' he said. "Employees and managers must work together as a team. And management has to understand that it's the workers who define the airline."
Unhappy employees can make customers unhappy. And Northwest's customers are among the unhappiest in the airline industry.
In the University of Michigan's latest American Customer Satisfaction Index, Northwest ranked last among seven rated carriers.
Business travelers have seen a mixed performance by Northwest employees in recent weeks, said Marty Wahoske, spokesman for the North Central Business Travel Association, whose members include dozens of local corporate travel managers.
"On some flights, we continue to see excellence in service,'' Wahoske said. "And on other flights we see an attitude or an edge in serving the customers. It would translate into 'I'm not happy.' "
Union leaders agree that a lot of Northwest employees are not happy with the airline. But they insist the workers continue to do their jobs well.
"Our people love doing their jobs,'' said Bobby De Pace, head of the airline's ground workers union. "It's management that gets in the way."
De Pace says employees aren't about to forget recent — and past — wrongs they feel Northwest did them.
"This is more like a broken branch than an olive branch,'' De Pace said of Steenland's speech. "Now that our negotiation process is done, they think they can say, 'Let's be friends.' It's not going to happen."
The airline's relations with its flight attendants are especially frosty. They are the one major employee group with which Northwest doesn't have a negotiated — or imposed — contract.
"We hope his enthusiasm for building relations with employees will be reflected at the table,'' said union spokeswoman Karen Schultz. "It has not been shown in the treatment of employees, their families and their communities."
Achieving the type of management-employee relationship that Steenland envisions is certainly a long shot, said John Budd, a professor of human resources at the University of Minnesota.
"Management is going to have to work very hard to show that it is serious about truly changing its approach," Budd said. "How you do this while simultaneously demanding huge concessions is anyone's guess."
Northwest will have to win employees over with actions, said Craver, the George Washington University professor. For instance, if it turns out that Northwest extracted greater concessions than it needed, it should give money back to workers before contracts come up for renegotiation.
Northwest argues that management employees also have taken a fair share of pay cuts at the airline. But restraining executive compensation in the future will be critical, Craver said. For example, granting huge stock-option awards upon Northwest's exit from bankruptcy would be a mistake.
Meanwhile, union leaders have to be careful in mending fences with management.
"It's very hard for union officials to be quick to accept this,'' Craver said of Steenland's model for a new relationship. "They risk getting thrown out. They can't afford to look too cozy after taking huge pay cuts."
Martin J. Moylan can be reached at [email protected] or 651-228-5479.
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:laugh:
What a clown.
F you, and F your whole family Steenland. You're a disgrace to humanity.
NWA aims to mend fences
But unions say words ring hollow after steep cuts
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines' relations with its employees have been somewhat strained in recent years. Even CEO Doug Steenland admits it.
That can happen when an airline loses billions of dollars, cuts about 20,000 jobs, replaces its union mechanics, lands in bankruptcy and squeezes wages, benefits and other labor costs by $1.4 billion annually.
But as Northwest works its way through its reorganization and nears its targeted labor savings, Steenland is talking up the potential to "repair and renew" company-employee relations.
Eagan-based Northwest has a "once-in-a-lifetime opportunity" to take the airline to "new heights by fundamentally changing the way we interact with one another," he told managers at a company meeting in St. Paul last week.
"The next five years — and beyond — will be about: respect for one another; listening to one another; openness to new ideas and new ways of doing things; inclusion in decision-making; a shared vision; a shift from 'us versus them' to just 'us;' unchaining the expertise of our co-workers; and recognition and reward for achievement. It's up to us to make those words mean something," Steenland said.
But union leaders say Steenland's words are not matched by actions.
Northwest and its employees really don't have any choice but to move toward less adversarial relations, said Charles Craver, a George Washington University law professor who specializes in labor and employment law.
"If the workers don't work hard for Northwest, Northwest is not going to survive,'' he said. "Employees and managers must work together as a team. And management has to understand that it's the workers who define the airline."
Unhappy employees can make customers unhappy. And Northwest's customers are among the unhappiest in the airline industry.
In the University of Michigan's latest American Customer Satisfaction Index, Northwest ranked last among seven rated carriers.
Business travelers have seen a mixed performance by Northwest employees in recent weeks, said Marty Wahoske, spokesman for the North Central Business Travel Association, whose members include dozens of local corporate travel managers.
"On some flights, we continue to see excellence in service,'' Wahoske said. "And on other flights we see an attitude or an edge in serving the customers. It would translate into 'I'm not happy.' "
Union leaders agree that a lot of Northwest employees are not happy with the airline. But they insist the workers continue to do their jobs well.
"Our people love doing their jobs,'' said Bobby De Pace, head of the airline's ground workers union. "It's management that gets in the way."
De Pace says employees aren't about to forget recent — and past — wrongs they feel Northwest did them.
"This is more like a broken branch than an olive branch,'' De Pace said of Steenland's speech. "Now that our negotiation process is done, they think they can say, 'Let's be friends.' It's not going to happen."
The airline's relations with its flight attendants are especially frosty. They are the one major employee group with which Northwest doesn't have a negotiated — or imposed — contract.
"We hope his enthusiasm for building relations with employees will be reflected at the table,'' said union spokeswoman Karen Schultz. "It has not been shown in the treatment of employees, their families and their communities."
Achieving the type of management-employee relationship that Steenland envisions is certainly a long shot, said John Budd, a professor of human resources at the University of Minnesota.
"Management is going to have to work very hard to show that it is serious about truly changing its approach," Budd said. "How you do this while simultaneously demanding huge concessions is anyone's guess."
Northwest will have to win employees over with actions, said Craver, the George Washington University professor. For instance, if it turns out that Northwest extracted greater concessions than it needed, it should give money back to workers before contracts come up for renegotiation.
Northwest argues that management employees also have taken a fair share of pay cuts at the airline. But restraining executive compensation in the future will be critical, Craver said. For example, granting huge stock-option awards upon Northwest's exit from bankruptcy would be a mistake.
Meanwhile, union leaders have to be careful in mending fences with management.
"It's very hard for union officials to be quick to accept this,'' Craver said of Steenland's model for a new relationship. "They risk getting thrown out. They can't afford to look too cozy after taking huge pay cuts."
Martin J. Moylan can be reached at [email protected] or 651-228-5479.
-----------
:laugh:
What a clown.
F you, and F your whole family Steenland. You're a disgrace to humanity.
