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What's Next for Northwest?: Contract Fight Raises Questions for Airline, Employees, Passengers

Posted on: Wednesday, 1 March 2006, 06:00 CST

By Martin J. Moylan, Pioneer Press, St. Paul, Minn.

Mar. 1--Q. Can Northwest Airline's unions strike?

A.

When and whether they could strike is unclear. To exert pressure on Northwest, the unions must make Northwest believe they would strike, whether or not the law is with them. Northwest argues the unions could not legally strike if the judge overseeing Northwest's bankruptcy rejects the union contracts. But the unions insist they could. The pilots are even saying they could walk without the usual 30-day cooling off period that typically precedes a strike. Look for more court battles.

Q.

Can't President Bush step in?

A.

Maybe. That's been an option in past union-management battles. Bush intervened in March 2001 to halt a strike by Northwest mechanics. He appointed a Presidential Emergency Board to try to settle the dispute between Northwest and the Aircraft Mechanics Fraternal Association. They agreed on deal about a month later. Bush did not intervene in the 2005 mechanics strike at Northwest. But Northwest weathered that strike, outsourcing most of the strikers' work.

Q.

How likely is a strike?

A.

A strike, the unions know, could force Northwest to liquidate, eliminating the jobs of its 35,000 employees. Pilots in particular have a lot to lose; some would be giving up six-figure pay to start over again at the bottom of the pay scale of another airline. They also would lose tens of thousands in annual pension payments.. Logic says the unions won't strike. But emotion can trump reason, especially when employees have lost tens of thousands of jobs and face big pay cuts and other giveback demands.

Q.

If pilots do strike, why can't Northwest keep operating like it did when mechanics walked out?

A.

Northwest acknowledges it's not going to find replacement pilots to fly its planes. In January, Northwest Senior Vice President David Davis testified that the airline has no contingency plan for a work stoppage.

Q.

What about flight attendants?

A.

At one point, Northwest was lining up replacement flight attendants. But it dropped that plan, the flight attendants' union says.

Q.

What protection does travel insurance offer me in the event of a strike or liquidation of an airline?

A.

Check your policy for events covered and limitations. Protections vary, said Terry Trippler of cheapseats.com.

Q.

What happens if I'm in the middle of a trip and a strike occurs, especially if I'm overseas?

A.

You're entitled to refund in the event of a strike but the airline likely would try to rebook you on a flight on another airline if you wish, Trippler said. But it could be difficult to find a flight. Airlines have been flying with fewer and fewer empty seats, he said. You shouldn't incur additional costs with a rebooking but don't expect the airline to pay hotel bills or spring for meals, said Trippler.

Q.

Does working through a travel agent provide extra benefits?

A.

People with a travel agent are at a distinct advantage if a strike hits, said Trippler. They have someone who knows the business working for them.

Q.

What happens if Northwest -- or any airline -- is grounded by a strike, can't transport me, but hasn't liquidated?

A.

You are entitled to a refund if your flight is canceled or subject to a significant rescheduling, the U.S. Department of Transportation says. That's true at all times, even when airlines aren't warring with their unions.

Q.

If Northwest goes out of business, is it likely to issue any ticket refunds?

A.

It may or may not. Generally, if you bought a ticket with a credit card and don't get to fly through no fault of your own, you are entitled to a refund. That is as long as you request a refund within 60 days of your billing date. As a practical matter, most credit card issuers don't enforce the 60-day limit when an airline liquidates, the DOT says. They'll just provide a credit. Some banks treat debit cards like credit cards. But don't count on it.

Q.

What if I paid with cash?

A.

That's not the best way to pay. Independence Air, which recently liquidated, received bankruptcy court permission to make refunds to customers who had paid cash for tickets. But if an airline goes out of business, customers who paid for tickets in cash risk getting a partial refund or none at all.

Q.

Will other carriers honor Northwest tickets if it were to go out of business?

A.

Yes. Several years ago, Congress passed a law requiring that airlines provide transportation to passengers who hold tickets on airlines that have ceased flying. Expect to pay the accommodating airline $50 each way. But transportation is only provided on a space-available basis and just by other carriers that operate on the route for which the passenger is ticketed. The law applies to international travel but not foreign airlines. On some routes, you'll find very few U.S. carriers.

Q.

What if I'm overseas during a strike or liquidation?

A.

Hope the airline has someone there to help you rebook on another carrier. But be prepared to fend for yourself. Scope out your alternatives in advance.

Martin J. Moylan can be reached at mmoylan@pioneerpress.com or 651-228-5479.

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Copyright (c) 2006, Pioneer Press, St. Paul, Minn.

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Source: Saint Paul Pioneer Press (St. Paul, Minn.)

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