Northwest Pilots OK Temporary Union Contract
ST. PAUL, Minn. _ Northwest Airlines’ union pilots have approved an interim contract that gives the struggling airline $215 million in annual labor savings.
In return, the union expects to avoid a court-imposed contract and get a few more months to negotiate a final deal with the carrier, which is trying to reorganize itself in a Chapter 11 bankruptcy.
Voting in favor of the deal were 2,563 pilots; 1,465 opposed it. About a fifth of the 5,040 pilots eligible to vote did not cast ballots.
“There is very little in the agreement to like,” said union spokesman Hal Myers. “However, we believe (approval) was the right choice to make. … We’ll engage in negotiations as quickly as possible to make the best use of the time we have bought through this agreement.”
The pact includes 24 percent pay cuts. That’s in addition to 15 percent pay cuts pilots took last year.
The pay scale for Northwest pilots now will range from about $27,000 for beginners to $160,000 or so for the most veteran pilots flying the biggest jets.
Counting previous pilot givebacks, Northwest now has $465 million in annual labor savings from its aviators. Its final target is $612 million. More pay cuts seem likely.
Northwest has said it will back off a move to impose contracts on its three biggest unions if they provide 60 percent of the labor savings the airline is seeking.
The flight attendants’ union has signaled it will do that, giving Northwest $117 million in annual concessions now while continuing to bargain additional givebacks.
Meanwhile, Northwest is poised to seek a court order this week that would impose temporary 19 percent pay cuts on its baggage handlers, reservation agents and other ground workers.
Their union has balked at providing interim givebacks. But if the bankruptcy court approves Northwest’s request, the airline would have 60 percent of the savings it’s seeking from ground workers.
Overall, Northwest is seeking $1.4 billion in annual wage and other labor savings.
Pilots’ union spokesman Myers said the outsourcing of jobs will be a huge issue in upcoming bargaining sessions.
Northwest has proposed creating a new company that would fly smaller 70- to 100-seat jets for Northwest, Myers said. But the union wants those jobs to remain with Northwest.
“Our vision of Northwest Airlines’ success includes Northwest pilots,” said Myers. “Management’s (vision) doesn’t seem to.”
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