Union rift endangers NWA pilots' deal
ALPA leader Mark McClain faces a recall after supporting Northwest's concessionary deal.
Liz Fedor, Star Tribune
Last update: April 25, 2006
Mark McClain, the veteran chairman of the Northwest Airlines pilots union, may be forced out of office today, and most of those pushing for his recall also oppose a concessionary pilots' agreement negotiated in March.
The 12 voting members of the union's executive council deadlocked concerning a recommendation on the tentative agreement, but McClain joined the negotiating committee in urging rank-and-file pilots to ratify the deal.
The movement to replace McClain is evidence of the sharp divisions within the executive council and within the 5,700-pilot group about how to respond to Northwest's demand for $358 million in annual cutbacks. Failure to ratify the agreement could lead to a judge imposing even more onerous provisions.
McClain's public support for the concessionary deal "caused a rift" among union leaders, said Mike Ristow, the pilots union representative on Northwest's board of directors.
"They do have enough votes to recall Mark," Ristow said Monday, adding that he hopes that won't happen. "It doesn't accomplish any useful purpose. I would say categorically that I support Mark McClain 100 percent."
Ristow said McClain and the negotiating committee pressed for the best deal in a difficult negotiating environment with bankrupt Northwest. Ristow supports the tentative agreement. McClain was unavailable for comment Monday.
The internal rift has some outside observers concerned.
"It appears that the risks are growing that the tentative agreement could be turned down," Julius Maldutis, president of New York-based Aviation Dynamics, said Monday in an interview.
Maldutis, a former Wall Street analyst, said that if Northwest pilots reject the tentative agreement, "the matter will go back to court, and I believe that the judge will then abrogate the pilot contract."
Pilot negotiators warned their members Friday that they, too, think Judge Allan Gropper would allow Northwest to void the existing contract if pilots reject the tentative pact. That action would permit Northwest to impose pay rates and work rules on the pilots that negotiators predict would be worse than the tentative deal.
Members of the Northwest branch of the Air Line Pilots Association (ALPA) agreed to a 15 percent pay cut in late 2004. In November, 64 percent of Northwest pilots who voted decided to accept an additional, temporary, pay cut of 23.9 percent. In early March, Northwest and the union reached a long-term tentative agreement.
But now a large number of Northwest pilots are organizing to defeat the agreement that would keep concessions in place through 2010 or 2011. A ratification vote is scheduled to be completed May 3. Pilots are allowed to change their votes until the final day.
In a memo to pilots, the negotiating committee warned that "it is unknown whether Congress would continue to work on pension reform legislation which mainly benefits one employee group [Northwest pilots], if the tentative agreement is rejected."
Northwest and ALPA leaders have jointly lobbied to win support for a pension provision that would give the airline up to 20 years to fully fund its defined-benefit pension plans. United Airlines and US Airways have terminated their plans.
Industry sources said Northwest pilots stand to lose $1.7 billion in benefits over the life of the defined-benefit plan if Congress doesn't give the carrier more time to make contributions and the plan is terminated.
Bill Bartels, vice chairman of the Northwest pilots union, said Monday that he is opposed to linking the fate of the pension bill with ratification of the Northwest pilots agreement.
Bartels, a Northwest first officer based in Detroit, is an outspoken opponent of the agreement. Politically, he is closely tied to A. Ray Miller, an Airbus A330 captain from Detroit.
Miller has aligned himself with the first officers on the executive council in opposing the tentative agreement and seeking McClain's ouster.
Ironically, Bartels also is subject to recall at today's executive council meeting. Bartels said he was elected vice chairman in October as part of a political compromise.
The Northwest pilot executive council cast multiple tie votes when Miller challenged McClain for the union chairmanship. Miller withdrew from the balloting on the agreement that Bartels would become vice chairman, Bartels said Monday.
Miller, who organized the junior pilot opposition to the tentative agreement, could not be reached for an interview Monday.
Oil was $63.67 a barrel on March 3, the day Northwest reached its pilots deal. Crude oil hit a record high Friday of $75.17 per barrel.
Liz Fedor • 612-673-7709
ALPA leader Mark McClain faces a recall after supporting Northwest's concessionary deal.
Liz Fedor, Star Tribune
Last update: April 25, 2006
Mark McClain, the veteran chairman of the Northwest Airlines pilots union, may be forced out of office today, and most of those pushing for his recall also oppose a concessionary pilots' agreement negotiated in March.
The 12 voting members of the union's executive council deadlocked concerning a recommendation on the tentative agreement, but McClain joined the negotiating committee in urging rank-and-file pilots to ratify the deal.
The movement to replace McClain is evidence of the sharp divisions within the executive council and within the 5,700-pilot group about how to respond to Northwest's demand for $358 million in annual cutbacks. Failure to ratify the agreement could lead to a judge imposing even more onerous provisions.
McClain's public support for the concessionary deal "caused a rift" among union leaders, said Mike Ristow, the pilots union representative on Northwest's board of directors.
"They do have enough votes to recall Mark," Ristow said Monday, adding that he hopes that won't happen. "It doesn't accomplish any useful purpose. I would say categorically that I support Mark McClain 100 percent."
Ristow said McClain and the negotiating committee pressed for the best deal in a difficult negotiating environment with bankrupt Northwest. Ristow supports the tentative agreement. McClain was unavailable for comment Monday.
The internal rift has some outside observers concerned.
"It appears that the risks are growing that the tentative agreement could be turned down," Julius Maldutis, president of New York-based Aviation Dynamics, said Monday in an interview.
Maldutis, a former Wall Street analyst, said that if Northwest pilots reject the tentative agreement, "the matter will go back to court, and I believe that the judge will then abrogate the pilot contract."
Pilot negotiators warned their members Friday that they, too, think Judge Allan Gropper would allow Northwest to void the existing contract if pilots reject the tentative pact. That action would permit Northwest to impose pay rates and work rules on the pilots that negotiators predict would be worse than the tentative deal.
Members of the Northwest branch of the Air Line Pilots Association (ALPA) agreed to a 15 percent pay cut in late 2004. In November, 64 percent of Northwest pilots who voted decided to accept an additional, temporary, pay cut of 23.9 percent. In early March, Northwest and the union reached a long-term tentative agreement.
But now a large number of Northwest pilots are organizing to defeat the agreement that would keep concessions in place through 2010 or 2011. A ratification vote is scheduled to be completed May 3. Pilots are allowed to change their votes until the final day.
In a memo to pilots, the negotiating committee warned that "it is unknown whether Congress would continue to work on pension reform legislation which mainly benefits one employee group [Northwest pilots], if the tentative agreement is rejected."
Northwest and ALPA leaders have jointly lobbied to win support for a pension provision that would give the airline up to 20 years to fully fund its defined-benefit pension plans. United Airlines and US Airways have terminated their plans.
Industry sources said Northwest pilots stand to lose $1.7 billion in benefits over the life of the defined-benefit plan if Congress doesn't give the carrier more time to make contributions and the plan is terminated.
Bill Bartels, vice chairman of the Northwest pilots union, said Monday that he is opposed to linking the fate of the pension bill with ratification of the Northwest pilots agreement.
Bartels, a Northwest first officer based in Detroit, is an outspoken opponent of the agreement. Politically, he is closely tied to A. Ray Miller, an Airbus A330 captain from Detroit.
Miller has aligned himself with the first officers on the executive council in opposing the tentative agreement and seeking McClain's ouster.
Ironically, Bartels also is subject to recall at today's executive council meeting. Bartels said he was elected vice chairman in October as part of a political compromise.
The Northwest pilot executive council cast multiple tie votes when Miller challenged McClain for the union chairmanship. Miller withdrew from the balloting on the agreement that Bartels would become vice chairman, Bartels said Monday.
Miller, who organized the junior pilot opposition to the tentative agreement, could not be reached for an interview Monday.
Oil was $63.67 a barrel on March 3, the day Northwest reached its pilots deal. Crude oil hit a record high Friday of $75.17 per barrel.
Liz Fedor • 612-673-7709
