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Bush says will not block possible Northwest strike

Posted on: Monday, 15 August 2005, 16:11 CDT

WASHINGTON (Reuters) - President George W. Bush does not plan to block a threatened strike by mechanics at Northwest Airlines that could come as early as Saturday, the White House said on Monday.

The disclosure came as the No. 4 airline and the Aircraft Mechanics Fraternal Association (AMFA) resumed talks in Washington on proposed givebacks that are part of the company's plans to cut costs and avert bankruptcy.

The negotiations have been bitter with the union accusing the company of bargaining in bad faith. Northwest says it must have hefty concessions.

Northwest is seeking $176 million in annual wage and benefit givebacks from the union representing mechanics, cleaners and custodians. This includes halving the AMFA work force of 5,400.

Talks overseen by the National Mediation Board ended in July, triggering a 30-day cooling off period that could lead to a strike by Saturday. The company has also threatened a lockout if the union refuses to agree on a cost-savings plan.

Federal labor law permits Bush to intervene to prevent a walkout or lockout temporarily if the White House and administration labor advisers determine a job action would harm the economy.

Bush intervened or threatened to do so to avert strikes or facilitate settlements in other airline disputes early in his presidency. In March of 2001, Bush blocked a threatened strike by the same AMFA union at Northwest.

But the administration says it will not nullify a potential strike this time.

"The National Mediation Board has found that a labor action at Northwest Airlines would not present a substantial disruption of interstate commerce," said White House spokesman Trent Duffy. "The administration does not dispute this conclusion based on current information, and the president is not creating a Presidential Emergency Board."

An emergency board would delay a strike or a lockout for up to 60 days and recommend a settlement.

Northwest had no comment on the White House announcement. The company had previously said it would not seek White House intervention and says it has contingency plans for a strike.

The union said it was not looking for Bush to help settle the dispute. "We're ready to make our point. We're ready to get it on and get it done," said Jeff Mathews, AMFA spokesman.

Shares of Northwest closed up 15 cents or 3.7 percent to $4.17 in over-the-counter trading.

Source: REUTERS

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