Northwest Airlines used charter carrier Champion Air and its crew to operate a flight from Detroit to Dallas-Fort Worth on Wednesday morning, sparking tension between Northwest and its powerful pilots union.
The use of Champion to fly some Northwest routes is part of a contingency plan the airline plans to deploy in case of a mechanics strike, which could come late next week.
However, the airline acknowledged Wednesday that it launched a portion of its strike contingency plan early because of the high level of out-of-service aircraft.
"The use of Champion Airlines to fly a very limited number of flights is part of our commitment to serve our customers," the Eagan-based airline said in a statement.
But the move drew a quick protest from the head of the pilots union at Northwest, who said he appealed to airline Chief Executive Doug Steenland.
"We had a frank and candid discussion about this blatant violation of our contract," said Mark McClain, who heads the executive council of the Air Line Pilots Association at Northwest. "I asked him to cease and desist further action."
The union also has filed a grievance to protest the action. According to ALPA, the pilot agreement requires flying conducted by or for Northwest Airlines or any affiliate to be performed by Northwest pilots. The agreement also prohibits the subcontracting of flying to others, the union says.
Northwest denies that tapping Champion violates its contract with pilots.
Champion Air, a Bloomington-based charter service, routinely provides crews and planes to airlines that need more capacity or replacement aircraft, according to a spokesman.
For Northwest, the pilots have emerged as the most receptive of the airline's major unions to its appeal for annual labor cost cuts of $1.1 billion. Pilots agreed to concessions totaling $300 million, and later urged others to take part. Northwest also is negotiating with unions representing its flight attendants and ground workers.
Center stage at the moment is Northwest's talks with its mechanics union, which are scheduled to resume Monday as an Aug. 19 deadline looms. That's when a 30-day "cooling-off" period ends and the mechanics can either strike or be locked out by the airline. The 30-day period began when talks between the airline and its mechanics were declared at impasse.
Pilots continue to encourage the two sides to avoid a strike or lockout, but haven't revealed what they would do if talks fail.
Northwest has said it expects to operate a full schedule of flights even if unionized mechanics are off the job. That would require pilots and other workers to cross picket lines.
"Actions like this can stand in the way of any cooperative effort to come up with a long-term solution," McClain said, referring to the use of Champion crews to operate Northwest flights.
Northwest's strategy with Champion certainly hasn't done anything to promote good relations with its strong pilots union, one observer said.
"While Northwest wants to make its strike contingency plan as effective as possible, it has to avoid alienating the pilots," said John Budd, a professor of human resources at the University of Minnesota's Carlson School of Management.
Northwest estimates it will spend $107 million to keep flying if mechanics strike, according to a contingency planning document dated June 28. The document outlines Northwest's plan to recruit, hire and train replacement workers and to tap ground workers to do some work now performed by mechanics.
"We have no comment on the document including its authenticity," a Northwest spokesman wrote in response to a question.
Also Wednesday, it was disclosed that State Street Bank & Trust Company has sold 985,000 shares of Northwest common stock that it held in trust for management employees at the airline.
They received the shares from 1993 to 1996 in exchange for wage concessions they gave Northwest. The proceeds from the sale, which apparently occurred in the past two weeks, will be deposited in money market accounts in the employees' retirement plans.
Northwest said Wednesday that State Street's decision was based on the airline's financial condition.
"They executed their fiduciary option to do that,'' said spokesman Bill Mellon. "As the trustee of that common stock, they have the legal right to liquidate it if they feel it is in the best interests of the shareholders."
State Street is not the trustee for millions of other shares issued to employees in exchange for 1993 wage concessions.
Trusts for pilots, flight attendants and ground workers still hold 4.6 million preferred and 6.6 million common shares of stock, Northwest records show. The shares are in individual employee retirement accounts.
Copyright 2005 Associated Press
