Northwest, union resume labor talks

By Kyle Peterson

CHICAGO (Reuters) – Labor negotiations resumed on Thursday
between Northwest Airlines and the union representing 4,400
striking mechanics and maintenance workers.

The talks could bring an end to the strike that began
August 20. But the airline has made clear that it may soon hire
its temporary workers permanently and that it may offer terms
even worse to the striking workers than those in its last
proposal.

The workers represented by the Aircraft Mechanics Fraternal
Association walked off the job, saying the No. 4 U.S. carrier
was asking the mechanics for unreasonable concessions.

The airline has continued flying using temporary workers
and outside vendors. AMFA says Northwest is suffering from the
strike and that the workload will overwhelm the replacement
mechanics who are less familiar with Northwest’s fleet.

Northwest insists its operations are smooth and that it is
prepared to operate with its replacement workers indefinitely.
Experts tend to agree with the airline.

“Now it’s a matter of damage control for the union. They
may be looking for a face-saving maneuver to rejuvenate the
membership, while avoiding the permanent loss of jobs,” said
Joe Schwieterman, transportation expert at DePaul University.

“I suspect that debate will be more around job rules and
job security, rather than hourly pay,” he said.

FUEL COSTS, KATRINA PRESSURE AIRLINE

Northwest says industry conditions have worsened since the
strike started because of a fuel spike resulting from Hurricane
Katrina. The carrier said it may have to ask the union
employees for even greater concessions.

Northwest Vice President of Labor Relations Julie Hagen
Showers said in a letter on Tuesday to AMFA that the company
needs to adopt a long-term solution.

“The airline must be in a position to start filling
permanent vacancies by September 13,” Showers said in the
letter.

A Northwest representative declined on Thursday to explain
the significance of that date.

AMFA said Northwest’s best offer before the strike was to
terminate about half of its AMFA-represented jobs and impose
hefty pay cuts on the remaining workers.

Northwest has said it needs $1.1 billion in annual labor
cost savings to restructure and avert bankruptcy. The carrier
was seeking $176 million of that amount from mechanics.

Eagan, Minnesota-based Northwest said it may need to raise
its labor cost savings target to offset fuel prices and that
any agreement must accommodate the increasingly dire
circumstances in the airline industry.

U.S. crude oil futures were trading at $63.65 a barrel on
Thursday, down from record highs above $70.

AMFA spokesman Steve Conway said it was not clear that
Northwest intended to ask for more concessions.

“It’s really impossible to tell at this point,” he said,
adding that the two parties “are going to both go to the table
to see what’s what.”

The striking workers are under strain and that some are
seeking other jobs, he said. But in general, they are devoted
to the strike.

“They’re holding up really well,” Conway said. “The best
measure of how they’re holding up is that not more than a
handful have crossed the line.”