Northwest Airlines' Mechanics Union Authorizes Strike Vote

MINNEAPOLIS (AP) -- A union representing mechanics at Northwest Airlines Corp. has authorized a strike vote as the airline attempts to cut annual labor costs by $1.1 billion (euro910 million).

Shares of Northwest fell 30 cents, or 6.6 percent, to $4.26 Friday afternoon on the Nasdaq.

The Aircraft Mechanics Fraternal Association said Friday its members at Northwest will be sent ballots and have until 10 a.m. July 19 to cast their votes on whether to authorize a strike, the union said.

Mechanics reversed months of tough talk June 24 and said they'd consider wage cuts. So far only the airline's pilots have agreed to cuts.

AMFA said it offered cuts it calculates at $143.5 million (euro119 million). It has said Northwest wants $176 million (euro146 million) in savings from mechanics.

Eagan, Minnesota-based Northwest issued a statement Friday that didn't directly address the strike vote, but said the airline was working with all of its other unions to reduce labor costs. It also said the airline was ''disappointed'' with AMFA's latest wage proposal.

Both sides have made strike preparations.

The company recently laid off about 700 mechanics and related workers in the Twin Cities. Managers have told union negotiators they want to cut about 2,000 more jobs across the Northwest system and save $176 million (euro146 million) a year by reducing pay and benefits.

Northwest lost $458 million (euro379 million) on operating revenue of $2.8 billion (euro2.3 billion) in the first quarter.

Talks between the two sides began in October. A mediator got involved in February.