Members of the International Association of Machinists and Aerospace Workers at Northwest Airlines delivered a split decision Tuesday on the bankrupt airline's $190 million cost-cutting proposal, the union announced.
In separate voting by classification, Northwest's proposal was accepted by the 7,677-member Clerical, Office, Fleet and Passenger Service (COFPS) group by 67 percent and the 18-member Plant Protection (PP) group by 53 percent. A similar proposal was rejected by the 5,632-member Equipment Service and Stock Clerks (ESSC) by 60 percent and the 42-member Flight Simulator Technicians and Simulator Support Specialists (SIMOP) by 88 percent.
The groups who rejected the contract authorized the union to call a strike.
A simple majority of those casting ballots determined the outcome in each classification. Seventy-five percent of all eligible voters cast ballots.
Terms of Northwest's offer included reducing the current court-imposed wage cut from 19 percent to 11.5 percent and replacing the airline's faltering pension plan with the IAM National Pension Plan. The NWA proposal also called for significant job cuts, reduced health care benefits and station closures.
The ratified agreement will take effect upon approval by the bankruptcy judge overseeing the carrier's financial affairs. Northwest is expected to ask the court to set a date for the resumption of the Section 1113(c) trial for the two groups that did not ratify the company proposal.
"The anger and frustration among all employee groups at Northwest Airlines was evident throughout the voting process," said District 143 President Bobby De Pace. "In the end, Northwest management failed to convince a majority of the workforce that the proposal was appropriate or that they could be trusted to honor their commitments."
In August 2003, NWA refused to abide by terms of the 1993 Employee Stock Plan calling for the carrier to redeem all outstanding NWA Corp. preferred shares held by an IAM trust. Following a court ruling that the carrier breached its promise to buy back the employee stock, the airline filed for bankruptcy.
"The IAM is prepared to meet Northwest Airlines at the bargaining table and in the courtroom," said De Pace who warned NWA of dire consequences if they fail to bargain in good faith. "The ESSC and SIMOP groups also authorized a strike if acceptable contract terms are not reached and the bankruptcy court abrogates their contracts."
Additional information is available at www.iam143.org
Share
Members of the International Association of Machinists and Aerospace Workers at Northwest Airlines delivered a split decision Tuesday on the bankrupt airline’s $190 million cost-cutting proposal, the union announced.
In separate voting by classification, Northwest’s proposal was accepted by the 7,677-member Clerical, Office, Fleet and Passenger Service (COFPS) group by 67 percent and the 18-member Plant Protection (PP) group by 53 percent. A similar proposal was rejected by the 5,632-member Equipment Service and Stock Clerks (ESSC) by 60 percent and the 42-member Flight Simulator Technicians and Simulator Support Specialists (SIMOP) by 88 percent.
The groups who rejected the contract authorized the union to call a strike.
A simple majority of those casting ballots determined the outcome in each classification. Seventy-five percent of all eligible voters cast ballots.
Terms of Northwest’s offer included reducing the current court-imposed wage cut from 19 percent to 11.5 percent and replacing the airline’s faltering pension plan with the IAM National Pension Plan. The NWA proposal also called for significant job cuts, reduced health care benefits and station closures.
The ratified agreement will take effect upon approval by the bankruptcy judge overseeing the carrier’s financial affairs. Northwest is expected to ask the court to set a date for the resumption of the Section 1113(c) trial for the two groups that did not ratify the company proposal.
“The anger and frustration among all employee groups at Northwest Airlines was evident throughout the voting process,” said District 143 President Bobby De Pace. “In the end, Northwest management failed to convince a majority of the workforce that the proposal was appropriate or that they could be trusted to honor their commitments.”
In August 2003, NWA refused to abide by terms of the 1993 Employee Stock Plan calling for the carrier to redeem all outstanding NWA Corp. preferred shares held by an IAM trust. Following a court ruling that the carrier breached its promise to buy back the employee stock, the airline filed for bankruptcy.
“The IAM is prepared to meet Northwest Airlines at the bargaining table and in the courtroom,” said De Pace who warned NWA of dire consequences if they fail to bargain in good faith. “The ESSC and SIMOP groups also authorized a strike if acceptable contract terms are not reached and the bankruptcy court abrogates their contracts.”
Additional information is available at www.iam143.org