LAT: Strike Looms as Northwest, Mechanics Fail to Reach Accord

[DeepModem Mom]

Strike Looms as Northwest, Mechanics Fail to Reach Accord
By Jesus Sanchez, Times Staff Writer


Northwest Airlines Corp. today rejected the most recent offer from its mechanics as both sides faced a potential strike this weekend that could push the nation's fourth largest carrier into bankruptcy.

The airlines' mechanics would be free to legally walk off their jobs at 12:01 a.m. Saturday if an agreement over labor concessions and cost savings cannot be reached. So far, the Aircraft Mechanics Fraternal Association has not initiated a strike and both sides continued to negotiate, according to airline officials.

The Minneapolis-based carrier has been seeking $176 million in annual concessions from the mechanics union. Northwest said that AMFA's most recent proposal, made late Wednesday, would result in estimated annual savings of only $100 million.

"Northwest wants to reach a consensual agreement, in advance of the August 20 deadline, that provides wage and benefit levels that are fair to our AMFA employees while allowing Northwest to stem its record operating losses," the airline said in a statement....

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The airline wants to lay off about half of its estimated 4,500 mechanics and cut the pay for the remainder by 25%, according to Associated Press. Northwest also wants to hire outside contractors to perform some of the work now performed by AMFA members, which also includes airplane cleaners and custodians....


http://www.latimes.com/business/la-081805northwest_lat,0,2992898.story?coll=la-tot-promo&track=toppromo

[ovidsen]

1. A lose/lose situation.

This is a damn shame. I'm speaking as a long term card carrying union member. There's no doubt that legacy airlines are suffering, and it's not just because of fuel costs or executive bonuses. It's commendable that AMFA was willing to take such a big hit in pay and benefits in their latest contract offer. But it's reprehensible that on top of massive layoffs and a 25% pay cut, the carrier would demand the right to outsource work. I get the feeling outsourcing was the deal-breaker. I hope Northwest doesn't go the way of Eastern.

[DeepModem Mom]

2. WP: Northwest Says It's Prepared For Strike (asks Bush not to intervene)

Northwest Says It's Prepared For Strike
Airline Taking Tough Stance With Mechanics
By Keith L. Alexander
Washington Post Staff Writer
Friday, August 19, 2005; Page D01

In the heat of a labor confrontation, Northwest Airlines Corp. last month took the unusual step of asking that President Bush not intervene to avert a strike by its mechanics.

The airline said it was well prepared to ensure normal operations even if the 4,400 union workers stopped working in protest of proposed job and pay cuts. The nation's fourth-largest carrier worked 14 months to have replacement workers ready to move into place.

The airline's request of the president sent another message: Northwest was prepared to endure a strike, even risk bankruptcy, to guarantee that it would be able to pay its workers less in the future than it does today. The airline's survival depended on it, executives reckoned.

With or without a strike, Northwest's strategy in its battle with its mechanics sends a message that financially strapped airlines are willing to resort to increasingly dire measures to cut costs in a highly competitive industry, labor analysts and union officials said. It also underscores the weakening of the airlines' unions, once a powerful and dominant force in the industry.

"If a corporation can eliminate an entire workforce and bring in replacement workers, it has ramifications for every other unionized company. That's what's at stake," said Steve MacFarlane, the mechanics union spokesman....

http://www.washingtonpost.com/wp-dyn/content/article/2005/08/18/AR2005081800394.html