MsFan
Extraordinary Member
- Joined
- Dec 12, 2001
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Northwest wants 20% pilot wage cuts
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines is asking its pilots to accept about a 20 percent pay cut — and maybe more — as part of an effort to slash the airline's costs by another $1 billion to $1.5 billion.
Pilots' wage scales would be rolled back to pre-1996 levels under a cost-cutting proposal from the airline, said Mark McClain, chairman of the executive council of the Northwest Airlines Air Line Pilots Association. In addition, Northwest could save money with work rule changes, benefit reductions and other moves.
The Eagan-based airline presented its giveback proposal to the pilots' union Tuesday, according to a late posting on the union's Web site.
"My gut reaction would be that this is a very aggressive proposal," McClain said. "I've been negotiating with these guys since 1994, and this is the most aggressive proposal I've seen."
Since 1993, pilots have had four 3 percent raises and a 4.5 percent raise. They're due a 5.5 percent raise in September, when their contract becomes amendable. Northwest's proposal would wipe all that out, McClain said.
The union is still trying to assess the overall impact of Northwest's proposal.
"To quantify the numbers at this point would be premature,'' said McClain. "Until we do an analysis, it's hard to value the work rule changes.''
"Management's proposal seeks significant and dramatic concessionary changes in virtually all areas of the current NWA pilot contract, including pay rates, work rules, benefits, retirement and scope,'' the posting said.
Northwest contends the changes would be permanent, not temporary, the posting says. The union says it sought clarification from Northwest in several areas but did not engage in any negotiations.
"We will continue our ongoing analysis of NWA's financial condition and business plan and make our own determination regarding what, if any, actions on the part of NWA pilots are necessary and appropriate at this time,'' the union said on its Web site.
Northwest would not comment specifically on the proposal.
"We are having private discussions with all our unions about the economic realities of the airline business,'' NWA spokesman Bill Mellon said.
Northwest has lost $1.2 billion and jettisoned 12,000 employees in the past two years. It already has cut operating costs by nearly $1.4 billion.
In 1993, as Northwest teetered on the verge of bankruptcy, its employees provided nearly $900 million in wage and benefit concessions. The airline, which lost $1.6 billion from 1990 through 1992, soon recovered and posted record profits.
Today, the airline is looking to its some 45,000 employees for help once again, asking them to shoulder most of $1 billion to $1.5 billion in new cost cuts. Northwest said it needs the cuts to get back in the black.
But union leaders and many employees feel they were never adequately rewarded for their 1993 concessions. Several union leaders have vowed they will not agree to another round of wage and benefit givebacks.
In 1993, Northwest's pilots agreed to a 15.5 percent wage cut for three years. With other contract modifications, their concessions amounted to about $365 million.
United Airlines, which has operated under bankruptcy-court protection since December, is seeking to slash annual labor costs by $2.4 billion. In December, its pilots agreed to a 29 percent interim pay cut.
US Airways, in bankruptcy since August, has cut labor costs by more than $1 billion a year. Some of its pilots face a 50 percent pay cut.
American Airlines is seeking $1.8 billion in cost cuts — $660 million from pilots, $350 million from flight attendants, $620 million from mechanics and ground workers, $80 million from ticket agents and $100 million from management.
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This article was followed by one describing the "performance bonuses" that up to 350 members of management received for 2002. Maybe the airline industry has changed forever (as CEO Richard Anderson is fond of saying), but one part remains the same it seems: Employees give, Management gets.
Nice.
BY MARTIN J. MOYLAN
Pioneer Press
Northwest Airlines is asking its pilots to accept about a 20 percent pay cut — and maybe more — as part of an effort to slash the airline's costs by another $1 billion to $1.5 billion.
Pilots' wage scales would be rolled back to pre-1996 levels under a cost-cutting proposal from the airline, said Mark McClain, chairman of the executive council of the Northwest Airlines Air Line Pilots Association. In addition, Northwest could save money with work rule changes, benefit reductions and other moves.
The Eagan-based airline presented its giveback proposal to the pilots' union Tuesday, according to a late posting on the union's Web site.
"My gut reaction would be that this is a very aggressive proposal," McClain said. "I've been negotiating with these guys since 1994, and this is the most aggressive proposal I've seen."
Since 1993, pilots have had four 3 percent raises and a 4.5 percent raise. They're due a 5.5 percent raise in September, when their contract becomes amendable. Northwest's proposal would wipe all that out, McClain said.
The union is still trying to assess the overall impact of Northwest's proposal.
"To quantify the numbers at this point would be premature,'' said McClain. "Until we do an analysis, it's hard to value the work rule changes.''
"Management's proposal seeks significant and dramatic concessionary changes in virtually all areas of the current NWA pilot contract, including pay rates, work rules, benefits, retirement and scope,'' the posting said.
Northwest contends the changes would be permanent, not temporary, the posting says. The union says it sought clarification from Northwest in several areas but did not engage in any negotiations.
"We will continue our ongoing analysis of NWA's financial condition and business plan and make our own determination regarding what, if any, actions on the part of NWA pilots are necessary and appropriate at this time,'' the union said on its Web site.
Northwest would not comment specifically on the proposal.
"We are having private discussions with all our unions about the economic realities of the airline business,'' NWA spokesman Bill Mellon said.
Northwest has lost $1.2 billion and jettisoned 12,000 employees in the past two years. It already has cut operating costs by nearly $1.4 billion.
In 1993, as Northwest teetered on the verge of bankruptcy, its employees provided nearly $900 million in wage and benefit concessions. The airline, which lost $1.6 billion from 1990 through 1992, soon recovered and posted record profits.
Today, the airline is looking to its some 45,000 employees for help once again, asking them to shoulder most of $1 billion to $1.5 billion in new cost cuts. Northwest said it needs the cuts to get back in the black.
But union leaders and many employees feel they were never adequately rewarded for their 1993 concessions. Several union leaders have vowed they will not agree to another round of wage and benefit givebacks.
In 1993, Northwest's pilots agreed to a 15.5 percent wage cut for three years. With other contract modifications, their concessions amounted to about $365 million.
United Airlines, which has operated under bankruptcy-court protection since December, is seeking to slash annual labor costs by $2.4 billion. In December, its pilots agreed to a 29 percent interim pay cut.
US Airways, in bankruptcy since August, has cut labor costs by more than $1 billion a year. Some of its pilots face a 50 percent pay cut.
American Airlines is seeking $1.8 billion in cost cuts — $660 million from pilots, $350 million from flight attendants, $620 million from mechanics and ground workers, $80 million from ticket agents and $100 million from management.
-----------------------------------------------------------------------------
This article was followed by one describing the "performance bonuses" that up to 350 members of management received for 2002. Maybe the airline industry has changed forever (as CEO Richard Anderson is fond of saying), but one part remains the same it seems: Employees give, Management gets.
Nice.
