Judge Gives NWA, Unions More Negotiation Time
(AP) NEW YORK The bankruptcy judge overseeing Northwest Airlines Corp.'s financial reorganization efforts on Thursday gave the carrier and its unions until the end of next week to come up with an alternative to their collective bargaining agreements.
Judge Allan Gropper, who is overseeing the case, had until Thursday to decide on the carrier's request to throw out its union contracts. He pushed back that decision until the close of business on Feb. 24, allowing the carrier and its unions more time to negotiate.
"We appreciate Judge Gropper giving the parties additional time to work out their differences," said Bill Mellon, spokesman for Eagan, Minn.-based Northwest Airlines. "We continue to believe that it is in the best interests of all parties to reach consensual agreements prior to Judge Gropper's ruling."
Northwest, which filed for bankruptcy protection in September, is seeking $1.4 billion in annual savings from its labor unions to help it emerge from bankruptcy protection. It said it needs to cut labor costs to compete better with low-cost carriers and absorb rising fuel costs.
In January, the airline asked the judge to throw out its collective bargaining agreements with its unions. The unions have said they may strike if the agreements are voided.
Andy Damis, secretary-treasurer for the flight attendants union, the Professional Flight Attendants Association, said he had expected the ruling to be pushed back.
Progress is coming "in fits and starts," Damis said. "Sometimes it seems like we're going backwards, but other times we appear to be making good progress."
According to the order issued by Gropper, representatives of the pilots union, the carrier's flight attendants union and Northwest's attorneys agreed to extension. Attorneys met with the judge in his chambers for nearly three hours on Thursday before he granted it.
Mellon said Northwest continues to have daily discussions with both unions on new contracts.