Northwest Gives Pilots 'Wish List' of Cuts

With a backdrop of record high oil prices, Northwest Airlines is urging its pilots to return to the negotiating table to discuss a new round of cuts, including reductions in wages, benefits and changes in work rules that could eliminate about 1,100 jobs.

"They see an advantageous environment for getting their desires in bargaining, so they want to start as quickly as possible," said Mark McClain, chairman of the executive council of the Air Line Pilots Association at Northwest. "But it takes two to bargain."

The council plans to discuss its negotiating strategy in a special meeting today and Thursday in St. Paul. Northwest is seeking annual cost savings of at least $1.1 billion from its labor groups as speculation intensifies about a possible bankruptcy filing. The mechanics went on strike Aug. 19, and the company is negotiating new contracts with the flight attendants and ground workers in an attempt to win givebacks.

Soaring fuel prices, low fares and pension liabilities are pushing the carrier toward bankruptcy. Extracting additional cuts from its pilots is critical. The pilot group agreed last year to $265 million in annual cost cuts and left the door open for more cuts once other labor unions have reached agreement on their fair share. Now, Northwest is seeking to accelerate discussions with its pilots as it seeks about $320 million in additional cost cuts.

The company said that while it appreciates the financial sacrifices made December by its pilots as well as its salaried and management employees, "it remains imperative that we reach new labor agreements with our other unions and complete a second round of pilot negotiations as soon as possible."

The Eagan, Minn.-based carrier has presented the union with a "wish list" for how to get to the cuts. The pilots are not in negotiations, but the union has told its members the list is an indication of what pilots can expect to see from Northwest when talks resume. The executive council's negotiating committee warned in a mailing to pilots last week that, in reading through the list, "you will probably become annoyed and frustrated."

The road map includes reductions in base pay of 22.3 percent, on average, and increased flying, which could result in the loss of about 1,100 jobs. The union represents 5,200 active pilots and 500 on furlough. Pilot pay ranges from $35,000 per year for first-year pilots to $209,000 for the most senior, although there are no first-year pilots on active status.

Whatever reductions the pilots take, they are insisting that management take commensurate cuts. "To me, in the interest of fairness and equity in this company, that is just a given," McClain said.

Copyright 2005 Associated Press