Two of the three largest unions at Northwest Airlines have agreed to immediate, interim concessions as a way of avoiding ? at least for now ? the risk of a bankruptcy judge shredding their contracts.
Leaders of the pilots and flight attendants unions agreed to give Northwest 60 percent of the financial cuts it wants. That buys the unions more time ? until at least mid-January ? to shape longer-term agreements.
But Machinists Air Transport District 143, which represents ground workers, rejected the airline's terms, including an immediate 19 percent cut in base pay.
"We're not going to agree to that," said District 143 President Bobby DePace. "That's very excessive for what our people can afford." Though some Machinists members make as much as $27 an hour, pay scales start at $10 to $12. "We can't agree to give those people 19 percent pay cuts," he said.
Nonetheless, DePace expects Northwest will get what it wants. The airline filed a Section 1113(e) motion on Nov. 7, asking the bankruptcy court to impose $114 million in cost cuts on the Machinists while the sides try to work out a longer-term agreement for $190 million in concessions.
Those talks will continue, DePace said. Up to now, however, the union and airline can?t even agree on the value of some concessions, including union proposals for buyouts that would soften what DePace estimates will be 3,100 to 4,900 job cuts. In addition, he said, Northwest wants to "modify" pensions and health benefits for current and future retirees.
Cuts focus on pay, for now
The unions made their contrasting decisions in the face of a Nov. 16 court deadline, which gave them little time to reasonably negotiate the complexities of a long-term agreement, said pilot Hal Myers, a spokesman for the local Master Executive Council of the Air Line Pilots Association.
"This agreement is better than leaving our future entirely in the hands of the bankruptcy court," said Peter Fiske, spokesman for the Professional Flight Attendants Association.
The pilots agreed to about $215 million in short-term concessions. That includes a 23.9 percent cut in base pay; cuts in sick pay, premium pay and other compensation; and even the elimination of crew meals. Combined with earlier pay cuts, pilots are giving up anywhere from $16,000 to $80,000 a year, Myers said, depending on seniority. Pilots are voting until Nov. 14 on whether to approve the deal.
The terms of interim agreement won't necessarily end up in the longer-term agreement, Myers said, which must address issues such as staffing, jurisdiction over smaller jets, and additional work rules.
The flight attendants agreed to $117 million in cuts, including a 20.7 percent cut in base pay. The cuts will cost the typical attendant more than $8,000 a year, Fiske said. The agreement allows attendants to work more shifts to help offset their losses, he said, but otherwise avoids serious changes in work rules.
Losses pile up
Northwest said it also reached long-term agreements with two smaller unions ? the Aircraft Technical Support Association and the Northwest Airlines Meteorology Association ? and was on the verge of a similar agreement with the Transport Workers Union.
The changes in wages, benefits and work rules are part of Northwest's plan to slash its labor costs by 37 percent ? from 4.1 cents per available seat mile to 2.6 cents. Northwest's goals include wiping out nearly 5,700 jobs, on top of the more than 16,000 it already has eliminated or outsourced.
Northwest lost $475 million in the third quarter, which includes about $159 million related to its bankruptcy actions. The airline, which lost nearly $2.5 billion total in the past 4 years, expects to lose an additional $1.7 billion this fiscal year.
Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@stpaulunions.org
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Two of the three largest unions at Northwest Airlines have agreed to immediate, interim concessions as a way of avoiding ? at least for now ? the risk of a bankruptcy judge shredding their contracts.
Leaders of the pilots and flight attendants unions agreed to give Northwest 60 percent of the financial cuts it wants. That buys the unions more time ? until at least mid-January ? to shape longer-term agreements.
But Machinists Air Transport District 143, which represents ground workers, rejected the airline’s terms, including an immediate 19 percent cut in base pay.
“We’re not going to agree to that,” said District 143 President Bobby DePace. “That’s very excessive for what our people can afford.” Though some Machinists members make as much as $27 an hour, pay scales start at $10 to $12. “We can’t agree to give those people 19 percent pay cuts,” he said.
Nonetheless, DePace expects Northwest will get what it wants. The airline filed a Section 1113(e) motion on Nov. 7, asking the bankruptcy court to impose $114 million in cost cuts on the Machinists while the sides try to work out a longer-term agreement for $190 million in concessions.
Those talks will continue, DePace said. Up to now, however, the union and airline can?t even agree on the value of some concessions, including union proposals for buyouts that would soften what DePace estimates will be 3,100 to 4,900 job cuts. In addition, he said, Northwest wants to “modify” pensions and health benefits for current and future retirees.
Cuts focus on pay, for now
The unions made their contrasting decisions in the face of a Nov. 16 court deadline, which gave them little time to reasonably negotiate the complexities of a long-term agreement, said pilot Hal Myers, a spokesman for the local Master Executive Council of the Air Line Pilots Association.
“This agreement is better than leaving our future entirely in the hands of the bankruptcy court,” said Peter Fiske, spokesman for the Professional Flight Attendants Association.
The pilots agreed to about $215 million in short-term concessions. That includes a 23.9 percent cut in base pay; cuts in sick pay, premium pay and other compensation; and even the elimination of crew meals. Combined with earlier pay cuts, pilots are giving up anywhere from $16,000 to $80,000 a year, Myers said, depending on seniority. Pilots are voting until Nov. 14 on whether to approve the deal.
The terms of interim agreement won’t necessarily end up in the longer-term agreement, Myers said, which must address issues such as staffing, jurisdiction over smaller jets, and additional work rules.
The flight attendants agreed to $117 million in cuts, including a 20.7 percent cut in base pay. The cuts will cost the typical attendant more than $8,000 a year, Fiske said. The agreement allows attendants to work more shifts to help offset their losses, he said, but otherwise avoids serious changes in work rules.
Losses pile up
Northwest said it also reached long-term agreements with two smaller unions ? the Aircraft Technical Support Association and the Northwest Airlines Meteorology Association ? and was on the verge of a similar agreement with the Transport Workers Union.
The changes in wages, benefits and work rules are part of Northwest’s plan to slash its labor costs by 37 percent ? from 4.1 cents per available seat mile to 2.6 cents. Northwest’s goals include wiping out nearly 5,700 jobs, on top of the more than 16,000 it already has eliminated or outsourced.
Northwest lost $475 million in the third quarter, which includes about $159 million related to its bankruptcy actions. The airline, which lost nearly $2.5 billion total in the past 4 years, expects to lose an additional $1.7 billion this fiscal year.
Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@stpaulunions.org