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Another Showdown at Northwest: 80% of Flight Attendants Reject Offer; Airline Seeks to Impose Contract Despite Strike Threat

Posted on: Wednesday, 7 June 2006, 06:00 CDT

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

Jun. 7--With its flight attendants resoundingly rejecting a proposed contract that would have cut their incomes by up to a third, Northwest Airlines is moving quickly to try to force a deal on them. And it's angling to block a possible strike.

The dispute heats up as the Eagan-based airline is entering what typically are its three busiest months of the year, with travelers embarking on their summer sojourns.

Just about an hour after the outcome of the month-long vote was announced Tuesday, Northwest asked for court permission to impose a contract on its flight attendants. The airline argues it needs hefty givebacks from them to help stem what have been billions of dollars in losses since the start of 2001.

Northwest also asked bankruptcy Judge Allan Gropper for a court injunction that would prevent the flight attendants from striking. At least Northwest hopes it would stop a strike.

"We are taking this action to reassure our customers that they can continue to book Northwest with confidence for their future travel needs," said Mike Becker, senior vice president of human resources and labor relations.

The airline asked Gropper to act as soon as possible. If he doesn't act fast, Northwest indicated in a court filing that it may be "required" to impose a contract on the flight attendants, even without a ruling from Gropper.

"We have that legal right if we so choose," spokesman William Mellon said.

The airline's losses are continuing, Becker said in a statement. And Northwest says its planned summer schedule and cost-cutting deals with other unions are contingent on getting contracts with all work groups wrapped up.

Flight attendants trounced the proposed contract, with 80 percent voting to reject it. That means just 1,270 voted for it, while 5,195 said no.

Leaders of the flight attendants union said they want to return to the bargaining table.

But Northwest blasted them for opposing the "very agreement that they negotiated." Mere "tweaks" won't get it approved, Northwest said.

"The imposition of terms and conditions ... is not the company's first choice," Northwest said. "But Northwest cannot continue to incur losses to the point that its survival would be in jeopardy."

A contract rejection would cost flight attendants more money and jobs, Northwest threatened in recent weeks.

With a "no" vote, Northwest vowed that it would drop a proposed severance plan, shift 30 percent of international flying to foreign flight attendants and start a new round of layoffs. About 1,100 flight attendants already are on "furlough."

The flight attendants union, mindful that the airline's baggage handlers negotiated a revised offer after rejecting a contract, says it's ready to resume negotiations.

The union is "prepared to immediately return to negotiations with the company in order to reach a fair and equitable agreement," said union President Guy Meek.

But he warned that if Northwest moves to impose a contract, the union "reserves the right to strike."

The contract proposal that went down would have saved Northwest $195 million a year, largely through wage and benefit cuts and work-rule changes. The deal would have left flight attendants with a pay scale ranging from about $15,000 to $38,000 a year.

Northwest is aiming to cut its annual labor costs by $1.4 billion. It imposed a contract on mechanics last year, and it has union-ratified settlements with most other work groups. Later this week, Northwest will learn whether baggage handlers have accepted its latest offer.

The large margin of defeat for the flight attendant contract surprised John Budd, a professor of human resources at the University of Minnesota.

Now, while Northwest tries to get Gropper to approve an imposed contract and strike prohibition, flight attendants will focus on choosing which union will represent them.

On Thursday, flight attendants are slated to begin two simultaneous monthlong votes. In one, they'll decide whether they want to stick with their current union, the Professional Flight Attendants Association, or replace it with the Association of Flight Attendants.

Flight attendants also will vote on a proposal to have the PFAA affiliate with the Transport Workers Union, which represents Southwest Airlines flight attendants. If the PFAA gets the boot, the vote would be moot, though.

The uncertainty about the flight attendants' union representation could influence at least the timing of Gropper's decisions, Budd said.

"This is uncharted territory," he said. "The judge is considering imposing a contract when he doesn't even know who the union will be."

Several PFAA leaders urged rejection of the contract although the PFAA negotiated it. Some leaders of the group backing the AFA also opposed the proposal.

"I'm delighted they stood up this strongly," said Mollie Reiley, a leader of the AFA camp.

Flight attendants understand the need for Northwest to cut its labor costs, but the airline is asking for too much, said Andy Damis, PFAA secretary and treasurer.

As far as the prospect of Northwest imposing a contract is concerned, he said, "Obviously, the flight attendants believe that risk was worth it."

For travelers, the talk of a labor showdown at Northwest is becoming almost routine.

James Brummett, a Minneapolis travel agent, said until the threat of a strike becomes more imminent, he doesn't expect people will book away from the airline.

"How many other times has this happened now?" he asked. "Just the fact that flight attendants can strike now doesn't mean that people will book away from them. Who knows? They may go back and renegotiate again."

But Dan Denofsky, who travels frequently for business and flies Northwest to Asia, said the threat of a strike would make him think twice about booking Northwest.

Other factors shape the conflict for some.

"Are they union?" asked Thomas Landosky, 50, a union carpenter who had just flown to the Twin Cities from Fort Lauderdale, Fla., to visit his girlfriend. "Then I definitely support them. That's all I need to know."

Cathy Loy, 19, a college student at North Central University in Minneapolis, noted the direct impact flight attendants have on travelers.

"We need peanuts and soda and blankets and pillows," she said. "They are a vital part of the flight experience. We appreciate them to the fullest extent."

Staff writer Julie Forster contributed to this report. 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.

Distributed by Knight Ridder/Tribune Business News.

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

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