NWA ALPA: new contract by yearend
10-02-2005, 03:15 AM
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NWA ALPA: new contract by yearend
October 2, 2005
Northwest pilot leader expects new contracts by yearend
--------------------------------------------------------
By Martin J. Moylan
Knight Ridder Newspapers
--------------------------------------------------------
ST. PAUL, Minn. — Northwest Airlines and its unions will settle their differences "one way or the other" by the end of the year, forecasts pilot union leader Mark McClain.
"We'll have a successful reorganization — or liquidation," McClain said in a recent interview.
But he said he's confident that Northwest, which is in bankruptcy, and its unions, creditors, vendors and other key parties can devise a successful reorganization plan.
"The only other option is: We go out of business," said McClain.
Soon, he expects, the Eagan, Minn.-based carrier will ask the judge overseeing its Chapter 11 reorganization to set a deadline for reaching giveback deals with its unions.
From its four biggest unions, the airline is looking to extract about $1.2 billion in wage and other labor savings annually. So far, after leaning on those unions for more than two years, Northwest only has pilot givebacks that it values at $250 million. And the airline wants another $358 million from that group.
Typically, the deadline for contract settlements comes no more than 51 days after a company requests it, the union indicated.
And McClain feels that request could come from Northwest any day now. "Nothing beats a deadline like a deadline," he said.
If the Northwest bankruptcy judge sets deadlines for new labor contracts to be reached and new pacts are not negotiated, then the judge can allow management to impose contracts.
But if Northwest tries to force a contract on pilots that they deem unacceptable, they could strike. That would, no doubt, ground Northwest, perhaps permanently.
As it stands now, Northwest is aiming to extract $608 million in annual wage, work rule and other savings from its pilots, up $36 million from its previous target.
Northwest's pitch hasn't changed much from the prior one, which came before it raised its overall target for labor cost savings from all employees from $1.1 billion to $1.4 billion.
The airline is still looking to cut loose about 1,100 of the 5,200 pilots now flying for it. The 400 layoffs announced last week were part of that proposed Northwest target, McClain indicated.
Pay cuts in the latest proposal are up several percentage points to an average of 28 percent. That includes the 15 percent pay cut the pilots agreed to last December.
Pilots, under the Northwest proposal, would earn from about $24,000 to $160,000 a year, McClain said. That would make Northwest pilots among the lowest paid in the industry, he lamented.
"It's a very aggressive proposal," he said. "Senior pilots, with a lot of experience, would be making $50,000, $60,000."
Northwest has yet to reveal its vision for its future, said McClain.
"We don't have their business plan," he said. "We don't know what Northwest management's long-term vision is for the airline. We haven't heard of any decisive changes in its core strengths such as its trans-Pacific service."
Preserving employee pensions will be critical to assuring Northwest's future, said McClain.
If Northwest does not make good on its pension obligations, it will enrage its workers.
"People in Northwest management know that the loss of hard-earned pensions will not lead to a motivated and enthusiastic work force," he said. "That's essential for the airline to be successful."
Prospects are good, McClain believes, for Congress to pass legislation that would give Northwest many more years, perhaps up to 25, to make payments to its pension plans. They're underfunded by $3.8 billion by the company's estimate.
Currently, Northwest is on the hook to pay $800 million into the plans in 2006 and $1.7 billion in 2007.
But Northwest has warned that it doesn't have the money to make such huge payments.
If it doesn't get more time to kick cash into the plans, the airline says it likely would have to terminate the plans, leaving them with the government agency that insures pensions.
Many, perhaps most, employees would not see a reduction in benefits if that happens. But individual pilots could lose tens of thousands of dollars in annual pension payments.
Another hot-button issue for pilots is the outsourcing of flying. They want to maintain as much flying as possible for Northwest pilots and minimize flying farmed out to smaller regional carriers, which typically employ lower-paid pilots.
--------------------------------------------------------------------------------
You can find this story online at:
http://www.dailyitem.com/archive/200...ries/01biz.htm
--------------------------------------------------------------------------------
Copyright © The Daily Item Publishing Company. All rights reserved.
Northwest pilot leader expects new contracts by yearend
--------------------------------------------------------
By Martin J. Moylan
Knight Ridder Newspapers
--------------------------------------------------------
ST. PAUL, Minn. — Northwest Airlines and its unions will settle their differences "one way or the other" by the end of the year, forecasts pilot union leader Mark McClain.
"We'll have a successful reorganization — or liquidation," McClain said in a recent interview.
But he said he's confident that Northwest, which is in bankruptcy, and its unions, creditors, vendors and other key parties can devise a successful reorganization plan.
"The only other option is: We go out of business," said McClain.
Soon, he expects, the Eagan, Minn.-based carrier will ask the judge overseeing its Chapter 11 reorganization to set a deadline for reaching giveback deals with its unions.
From its four biggest unions, the airline is looking to extract about $1.2 billion in wage and other labor savings annually. So far, after leaning on those unions for more than two years, Northwest only has pilot givebacks that it values at $250 million. And the airline wants another $358 million from that group.
Typically, the deadline for contract settlements comes no more than 51 days after a company requests it, the union indicated.
And McClain feels that request could come from Northwest any day now. "Nothing beats a deadline like a deadline," he said.
If the Northwest bankruptcy judge sets deadlines for new labor contracts to be reached and new pacts are not negotiated, then the judge can allow management to impose contracts.
But if Northwest tries to force a contract on pilots that they deem unacceptable, they could strike. That would, no doubt, ground Northwest, perhaps permanently.
As it stands now, Northwest is aiming to extract $608 million in annual wage, work rule and other savings from its pilots, up $36 million from its previous target.
Northwest's pitch hasn't changed much from the prior one, which came before it raised its overall target for labor cost savings from all employees from $1.1 billion to $1.4 billion.
The airline is still looking to cut loose about 1,100 of the 5,200 pilots now flying for it. The 400 layoffs announced last week were part of that proposed Northwest target, McClain indicated.
Pay cuts in the latest proposal are up several percentage points to an average of 28 percent. That includes the 15 percent pay cut the pilots agreed to last December.
Pilots, under the Northwest proposal, would earn from about $24,000 to $160,000 a year, McClain said. That would make Northwest pilots among the lowest paid in the industry, he lamented.
"It's a very aggressive proposal," he said. "Senior pilots, with a lot of experience, would be making $50,000, $60,000."
Northwest has yet to reveal its vision for its future, said McClain.
"We don't have their business plan," he said. "We don't know what Northwest management's long-term vision is for the airline. We haven't heard of any decisive changes in its core strengths such as its trans-Pacific service."
Preserving employee pensions will be critical to assuring Northwest's future, said McClain.
If Northwest does not make good on its pension obligations, it will enrage its workers.
"People in Northwest management know that the loss of hard-earned pensions will not lead to a motivated and enthusiastic work force," he said. "That's essential for the airline to be successful."
Prospects are good, McClain believes, for Congress to pass legislation that would give Northwest many more years, perhaps up to 25, to make payments to its pension plans. They're underfunded by $3.8 billion by the company's estimate.
Currently, Northwest is on the hook to pay $800 million into the plans in 2006 and $1.7 billion in 2007.
But Northwest has warned that it doesn't have the money to make such huge payments.
If it doesn't get more time to kick cash into the plans, the airline says it likely would have to terminate the plans, leaving them with the government agency that insures pensions.
Many, perhaps most, employees would not see a reduction in benefits if that happens. But individual pilots could lose tens of thousands of dollars in annual pension payments.
Another hot-button issue for pilots is the outsourcing of flying. They want to maintain as much flying as possible for Northwest pilots and minimize flying farmed out to smaller regional carriers, which typically employ lower-paid pilots.
--------------------------------------------------------------------------------
You can find this story online at:
http://www.dailyitem.com/archive/200...ries/01biz.htm
--------------------------------------------------------------------------------
Copyright © The Daily Item Publishing Company. All rights reserved.
10-02-2005, 06:51 AM
#2
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jesus... this ********* sounds just like OUR ********* right before the gigantic cave-in to management.
we are doomed. alpa needs to go. they are now working actively against the interests of the pilots they ostensibly represent.
we are doomed. alpa needs to go. they are now working actively against the interests of the pilots they ostensibly represent.
Last edited by Kill Bill; 10-02-2005 at 11:43 AM.
10-02-2005, 08:17 AM
#3
Gets Weekends Off
Joined APC: Jul 2005
Posts: 2,242
lowest paid in the industry...
Pay cuts in the latest proposal are up several percentage points to an average of 28 percent. That includes the 15 percent pay cut the pilots agreed to last December.
Pilots, under the Northwest proposal, would earn from about $24,000 to $160,000 a year, McClain said. That would make Northwest pilots among the lowest paid in the industry, he lamented.
"It's a very aggressive proposal," he said. "Senior pilots, with a lot of experience, would be making $50,000, $60,000."
Will others airlines follow??? This is a real shame- senior pilots making $50K-60K...
Pilots, under the Northwest proposal, would earn from about $24,000 to $160,000 a year, McClain said. That would make Northwest pilots among the lowest paid in the industry, he lamented.
"It's a very aggressive proposal," he said. "Senior pilots, with a lot of experience, would be making $50,000, $60,000."
Will others airlines follow??? This is a real shame- senior pilots making $50K-60K...
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