Future of Northwest Ground Staff Dim
The outlook for Northwest Airlines Inc. ground workers has grown worse with the airliner demanding 78% more in concessions compared to earlier this month, before the company filed for bankruptcy.
In all, Northwest wants its gate agents, baggage handlers and other ground workers to give back $190 million a year, up from $107 million, through wage cuts, outsourcing work and changing health care and pension plans.
The cuts will have to be negotiated "in the short run," or the airline will ask a bankruptcy judge to terminate the current contract, Northwest said in a letter Monday to the ground workers union.
Northwest filed for Chapter 11 bankruptcy protection Sept. 14, blaming in part skyrocketing jet fuel prices in the wake of Hurricane Katrina. Since late March, the airline had been seeking $1.1 billion in cuts from its unions until earlier this month, when the airline upped its demands to $1.4 billion.
The International Association of Machinists and Aerospace Workers represents about 14,000 ground workers at Northwest, including 2,500 based at Detroit Metro Airport, where Northwest handles more than 60% of traffic.
Northwest is asking most workers to take a 12.5% pay cut, with some job classifications, such as reservation agents, taking lower cuts depending on seniority.
The airline also wants the new contract to give it leeway to outsource work, mainly at destinations outside its three hubs, though the number of layoffs that would cause is unclear.
Stephen Gordon, president of machinists Local 141 at Metro Airport, said outsourcing work would be a sticking point in a new contract.
"This is something that you just don't give away," he said.
The airline also wants its ground workers to take a 5% temporary pay cut until it emerges from bankruptcy.
Northwest has said its proposals to its unions are possible ways to cut costs, and the airline is open to other suggestions to reach its target for labor concessions.
Separately, Northwest's commuter carrier Mesaba Airlines expects to remove nine 69-seat jets from Mesaba's fleet of roughly 100 aircraft by Oct. 31. By Dec. 20, Northwest plans to terminate the leases for all 35 regional jets Mesaba operates for Northwest.
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