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Judge Approves Agreements Between Northwest, Unions

Posted on: Thursday, 17 November 2005, 18:00 CST

NEW YORK (AP) -- A New York bankruptcy judge on Wednesday approved interim agreements between Northwest Airlines Corp. and its pilots and flight attendants unions that included pay cuts of up to 24 percent.

A hearing to permanently terminate collective bargaining agreements the airline made with its pilot, flight attendant and machinist unions before it filed for bankruptcy in September has been postponed until January.

Northwest, based in Eagan, Minn., expects a pretax loss of $1.7 billion for 2005 because of high fuel and wage costs, and said it is suffering losses of $4 million a day.

"The result will be significant cost savings," Judge Allan Gropper said, adding that the agreements should "ameliorate" Northwest Airlines financial problems.

The airline's attorney said the agreement with the pilots union, the Air Line Pilots Association, included a 23.9 percent pay cut, while the accord with flight attendants reduced pay by 20.7 percent. The unions ratified the agreement on Monday.

The judge's order on Wednesday also effectively imposed pay cuts of 19 percent on a third union, the International Association of Machinists, which has not reached an interim agreement with airline.

The machinists union represents 14,420 Northwest baggage handlers, ticket agents, and other ground workers.

Source: Deseret News (Salt Lake City)

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