WASHINGTON, July 18 /PRNewswire-FirstCall/ -- Hundreds of Northwest Airlines (OTC: NWACQ) employees arrived in the nation's capital today to urge members of Congress to quickly pass legislation that will save their pension benefits.
The effort involves the participation of hundreds of employees from throughout various functions of the company, including pilots, flight attendants, ground employees, flight dispatchers, meteorologists and management, most flying to Washington for the day-long lobbying push.
"The pilots of Northwest Airlines view pension legislation as a win, win, win for the taxpayer, employee and our employer," said Capt. Dave Stevens, master executive council (MEC) chairman of the Northwest unit of the Air Line Pilots Association (ALPA), who was among pilots to land in Washington today to participate. "This is not a taxpayer bailout; rather it is Northwest's opportunity to live up to its obligation over a longer period of time."
Northwest employees from around the country arrived at the capitol this morning. Many flew aboard two specially chartered flights, one from the airline's World Gateway at its Detroit hub, the other from its Minneapolis/St. Paul hub. Northwest provided two aircraft, including a 100-seat DC9-30 from Detroit, and a 124-seat Airbus 319 from the Twin Cities, as well as fuel, landing fees and other related costs. In addition, employees from Northwest's nearby Baltimore reservations call center drove to Washington to be part of the effort.
"Flight attendants have worked hard to bring forth fair pension legislation and AFA-CWA is proud to stand with our co-workers and make our voices heard," said Shane Larson, government affairs director for the Association of Flight Attendants (AFA-CWA). "For too long, companies have been getting away with destroying the futures of their employees in under-funded pension plans. Now, for the first time, we have an airline who wants to do the right thing and fulfill its obligation. Therefore it is up to us, the employees, to unite together and make sure that this happens."
The employees divided into smaller groups and are meeting with House and Senate delegations from states where Northwest is a major provider of air service, such as Michigan, Minnesota, Mississippi, Montana, South Dakota, Tennessee, Washington and Wisconsin, among others.
"We are here today to urge Congress to swiftly pass legislation that allows our membership to retain their hard-earned pension benefits; while protecting the benefits of thousands of retirees," said Stephen Gordon, president of Local Lodge 141 and president-elect of District 143 of the International Association of Machinists and Aerospace Workers (IAM). "It is imperative for Congress to listen to its constituents and reach an amicable solution during these turbulent times."
Securing passage of pension reform legislation that will allow the airline to meet its obligations to employees and protect taxpayers has been Northwest's number one legislative priority since the end of 2004.
"Many of us know far too many airline employees who have seen their pension plans terminated," said Perry Sprague, president of Local 543 of the Transport Workers Union (TWU), who joined fellow TWU-represented flight dispatchers in Tuesday's effort. "We have seen the kind of worry and hardship that this issue creates for employees and their families. We've worked with the company to create a workable solution and now look to Congress to do its part."
Northwest's pension plans were fully funded as recently as 2000. However, as a result of 1950s' era interest rates, major stock market declines, and a recession, the company's pension plans are now under-funded. In addition, the law governing pension funding requires highly accelerated "catch-up" payments when a plan is under-funded. These catch-up payments are particularly onerous in the current environment as nearly all U.S. airlines struggle to return to sustained profitability and cannot afford to make such contributions.
"This is a very important issue for Northwest Airlines employees and their families," said Rory O'Loughlin, chairman of Northwest Airlines Meteorologists Association (NAMA), who was in Washington. "We all have made difficult sacrifices as part of our participation in Northwest's restructuring, including moving to a defined contribution plan, but we need Congress' help to protect our existing defined benefit plans."
Some of Northwest's largest competitors have terminated their defined benefit contribution plans through the Chapter 11 bankruptcy process, turning responsibility for the plans over to the Pension Benefit Guaranty Corporation (PBGC), a governmental corporation that partially insures failed pension plans. The PBGC has taken over the pension plans of a number of airlines, including most recently United Airlines and US Airways. Northwest has said that without passage of this legislation, it will be forced to terminate its plans.
"For nearly two years, Northwest has worked diligently with members of Congress and other government officials to save these hard-earned retirement benefits for our employees," said Doug Steenland, president and chief executive officer of Northwest. "We believe that fully honoring these commitments is the right thing to do for Northwest's 73,000 pension plan participants. Enacting this important legislation now will protect taxpayers from having another large pension plan become the responsibility of the PBGC."
Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
SOURCE Northwest Airlines
News stories provided by third parties are not edited by "Aircraft Maintenance Technology" staff. For suggestions and comments, please click the Contact link at the bottom of this page.
