Union Supports Labor Deal With Northwest

Northwest Airlines Inc. said Friday members of the Aircraft Technical Support Association voted for a labor deal that will save the bankrupt carrier $2.25 million yearly.

The union, representing some 200 Northwest technical writers, trainers and maintenance planners, is the first of the company's seven unions to ratify a cost-cutting pact that provides the total contribution Northwest asked for, the carrier said.

Eagan-based Northwest seeks to slash $1.4 billion off yearly labor costs.

The ratified deal includes a 9.9 percent wage cut and is effective until the end of Northwest's fourth full calendar year out of bankruptcy.

Earlier in the week, Northwest, which has operated despite a strike by the Aircraft Mechanics Fraternal Association since August, reached pacts with four other unions.

The pacts include savings of a further $215 million from the Air Lines Pilots Association and $117 million from the Professional Flight Attendants Association. The pilot union in 2004 agreed to savings of $250 million.

The carrier said it is still talking with the International Association of Machinists and Aerospace Workers.

The rush for labor savings comes as Northwest in October posted a third-quarter loss of $469 million, or $5.45 a share.

The carrier's loss was $234 million excluding certain pension charges and reorganization items linked to its bankruptcy-court proceedings.

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.