Northwest Airlines to cut 2,500 jobs
 

AP
Northwest Airlines to cut 2,500 jobs
Wednesday July 9, 1:58 pm ET Northwest Airlines cutting 2,500 jobs, will charge for first checked bag
MINNEAPOLIS (AP) -- Northwest Airlines Corp. is the latest airline to cut jobs because of high oil prices.
The carrier said Wednesday it will eliminate 2,500 management and front-line jobs. It previously announced that it would shrink the amount of flying it does by roughly 9 percent later this year.

President and CEO Doug Steenland blames the cuts on fuel costs that have more than doubled in the past year.
Northwest says it will offer voluntary departures. It says furloughs will be used only if it does not get enough volunteers to reach the 2,500 number.

Northwest also says it will begin charging $15 for the first checked bag, matching a fee added by other carriers this year. And the airline says it will begin charging a fee for frequent-flier award tickets -- from $25 for domestic tickets to $100 for flights to Asia.
A spokeswoman for Delta Air Lines Inc., which is buying Northwest, said record high fuel costs are causing the Atlanta-based carrier to look at everything. "However, we have made no changes to the service we offer to customers for a complimentary first checked bag," spokeswoman Betsy Talton said.
At American Airlines, the first major U.S. carrier to announce a fee on first checked bags, spokesman Tim Smith declined to comment directly on Northwest's moves, "but their actions clearly show they are facing the same extreme challenges all airlines are dealing with these days."

Executives of American parent AMR Corp. said last week they expect to cut 8 percent of the work force, or about 6,800 jobs.
Continental Airlines Inc., which has announced 3,000 job cuts but doesn't charge for checking a first bag, declined to comment on Northwest's actions.
Northwest Airlines to cut 2,500 jobs: Financial News - Yahoo! Finance

We saw this coming!

I was under the assumption that all this merger talk and TA's were sold to the DAL/NWA pilot groups with the assurance that furloughs wouldn't result, something I never quite grasped. Someone correct me, please. I know I'm oversimplifying. Or would the combined entity result in LESS projected job loss? Either way, hang on tight.

Looks like you guys will be needing larger overhead bins!....

Retarded bag policies!

I wonder if this cut includes Mesaba and Compass since they own them and all. I know that Compass has the whole flowback thingy...God knows where that leaves Pinnacle.

Thats doesnt include pilot jobs. Merging companies ='s double mgmt positions. DAL already let over 4000 people go this is the same thing they are trimming for the merger. most if not all will be voluntary.

My question is once DAL/NWA are integrated including the seniority lists,(assuming DAL does not furlough), will any NWA guys still on furlough (hopefully none) with seniority above DAL pilots be "flip-flopped" back to work with the less senior DAL pilot furloughed? Intersting thing for the union to work out. As far as the "no furlough clause" in the newer agreements, I know that LOA 19 (DAL approved) contained a no furlough clause but I'm not sure if the joint agreement had one. Anyway, I think they only apply after the merger is approved by the DOJ. So maybe the companies can shed jobs before then with no penalty.

Very good....that makes a lot of since...they must think they have the merger in the bag if they already trimming the fat

The joint agreement has the same agreement and the NWA side has an LOA with mgmt that states no furloughs because of the cutbacks. The LOA also established a number of early out programs for senior pilots. Also if NWA pilots leave before the merger they get grandfathered under the NWA medical coverage in retirement instead of the much more expensive DAL coverage.

The merger is a done deal and mgmt knows it. We have DAL people in the NWA bases and vice verse called "integration teams". Things are well underway with integration.

If you read the internal company postings, this isn't just about double management positions linked to the merger. All positions will be affected by the reduction, including pilots and flight attendants. If there aren't enough pilots who volunteer for PERP, or the SLIP and PML programs, the furloughs will come. The LOA regarding the voluntary leaves only states that those programs are options attempting to avoid the need to furlough, not a guarantee of no furloughs.

The recent LOA that was signed bars them from furloughing pilots because of the fall cut backs. I read it but the F-Word is more for the other work groups.

This is per the LOA -

“ No involuntary, out-of-category, displacements or layoffs will occur as a result of the 2008 fall schedule reduction. Involuntary, out-of-category, displacements previously published for October 2008 will, at pilot option, be reversed. A pilot previously identified to be displaced for October 2008 will be contacted to elect whether he wishes to remain in his position or to be displaced. A pilot electing displacement shall retain the attendant 24.E.10. recall rights to which he is entitled in the Agreement.”

I see this as no furloughs until one of two things happen:But as for NWA guys, I think there will be a job for a short while, but my long term vision is not looking good.:(

Not too flame here, but I think that this LOA only applies to the current displacement, not to future ones. Like I said with the economy going in the dumps, they may have canceled the award so that they do not need to train people that they will lay off.
Remember the JPWA when approved has no teeth until the DCC. If either one of us furloughs before then, it is under each others respective JPWA's.

Does this pulldown include the 30 -9's and 757's that they are parking, or is that old news?

Honest question. Someone just mentioned something to me, and I don't know if it was announced today or in the past.

"AP
Northwest Airlines to cut 2,500 jobs
Wednesday July 9, 1:58 pm ET Northwest Airlines cutting 2,500 jobs, will charge for first checked bag
MINNEAPOLIS (AP) -- Northwest Airlines Corp. is the latest airline to cut jobs because of high oil prices.
The carrier said Wednesday it will eliminate 2,500 management and front-line jobs. It previously announced that it would shrink the amount of flying it does by roughly 9 percent later this year. "

I second that, totally agree. I know whenever we hear the word furlough we are quick to look at where we sit as pilots today, but I think NWA is doing the same thing DAL did a few months ago. I believe that DAL had 4,000 employees take the early out and they only needed about 2,500 or so, in addition I am sure this NWA is probably offering a similar package.

I'd agree things appear to be moving along, does anyone know when the final word from the Justice Department will be out?

At this point I think we all better hope this goes through, otherwise both NWA and DAL pilots will be in a very difficult position. I only say that because both companies have been working towards this merger and banking on the cost savings that would come from it.

Its old news. This is no different than what DAL did when they had over 4000 take the early leaves.

That's incorrect. These reductions are in DIRECT relation to the fall schedule reduction, and the TA that was signed with management does NOT ALLOW involutary furloughs as a result of the fall reduction. I invite you to call your union rep, as well as go on the merger website and read the agreement that was signed. It clearly states there can be NO involuntary furloughs as a result of the fall reduction. Please don't mispread information.

A quote from Steenlands message dated today. Take it for what it is worth...:confused:

"Northwest will reduce its frontline and management personnel by 2,500. All NWA employee groups will be affected by this."

Lets look at the glass half full....

Synergy has a good chance of success here if we all do our part. Let us also leave the F-word out as a last resource and deal with it IF it comes.

So riddle me this everyone.

If NWA furloughs on their side of the fence now....when we integrate the lists with the single operating certificate, what happens to the Delta side of the house?

Do we recall the NWA guys and furlough the DAL guys in 18 months?

Kinda curious because this would probably apply to yours truly.

Minneapolis, Detroit, Cincinnati, Memphis, Atlanta. Hummm??? Seems to me a lot of capacity is about to be whacked. 2500 is the tip of the iceberg.

I don't think anyone will know the answer to that...

I have heard rumors that DAL is still short and needs to hire more by the end of the year. I am curious as to if NWA does plan a furlough and DAL is short, if those pilots would slide over to fill the void and then be placed into the seniorty list once it all that is figured out.

As for the rumors about DAL being short...is that still going around?

Again....The 2,500 does not apply to current flight crew positions.
The companies are trying to plan ahead and consolidate the frontline and managment side of the house. A large amount of savings that occur in a merger are from payrolls/salaries at the management level.
While there will be a redution in flying I think it will effect regional service more than mainline. DAL is looking to push international capacity as much as possible, so that will in turn mean growth for the company.

Someone has it wrong:

Source:

Northwest Airlines to cut 2,500 jobs, raise fees | ajc.com


NEW YORK TIMES

Published on: 07/09/08 Northwest Airlines said Wednesday that it would cut 2,500 jobs, including pilots, flight attendants, mechanics and other employees, reflecting a reduction in flights.


Northwest also said it would join other airlines in charging many travelers $15 for the first checked bag, a move that takes effect with tickets purchased today.


Northwest also joined other airlines in charging fees for booking frequent-flier award tickets and increased its fees for changing tickets.
Northwest is the latest airline to cut jobs as the industry grapples with sharply higher costs for jet fuel. On Monday, AirTran said it would eliminate 480 jobs, while American, Continental and United all have announced cuts. Delta subsidiary Comair said Tuesday it would cut 300 pilots and 220 flight attendants, effective in September.


Delta said last month that it will cut 4,000 employees through voluntary retirements and separations, which it expects to generate $200 million in annual savings.


Though Delta and Northwest plan to merge, "any decisions that are made by Northwest today are made independent of Delta," Delta spokesman Kent Landers said.


"Our decisions are made completely separate and made based on our own business plan.


"As this merger is under the regulatory review process, there are very strict regulations for what we are allowed to coordinate, and many business decisions, certainly competitive business decisions, are not allowed to be coordinated," Landers said.


Delta charges a $25 fee for a second checked bag but has not announced a fee for the first bag.


"Record high fuel costs are causing us to look at everything, but we've made no change to this service at this time," Landers said.
Overall, Northwest is reducing its flying by up to 9.5 percent, the airline said in a regulatory filing. In its previous round of cuts, announced in April, Northwest said it would reduce flying capacity by about 7 percent this year.


"Our fuel costs have more than doubled in the past year," Northwest CEO Doug Steenland said in a statement. "In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue."


Steenland estimated the airline's new fees would raise $250 million to $300 million in revenue.


Northwest said it would offer a series of voluntary programs and would only lay off workers if it does not get enough people to accept buyouts.

— Staff writer Kelly Yamanouchi contributed to this article.

does nwa sending a pilot to compass equal a furlough or a downgrade? This could be how they get around not furloughing pilots.

I've never understood how an airline could lay-off so many workers and pilots could somehow be unaffected. These are deep cuts. A quick look around the domestic industry here in the U.S. and I suddenly become very skeptical of anyone from management or the union telling me that my job is protected or secure.

My mistake, the article I read didn't say anything about pilots.

There is some misinformation being reported. Not sure who is reporting the facts.........

Like I said there was a reason for the canceling of the Displacement. It was not just for the JPWA. I guess that it is more important than ever to get this JPWA and SLI done so that NWA can spread out some of the furloughs. Fact is that even if all of the new NWA folks get a pink slip it will not affect where they will sit on the list. My guess is DOH for all of the new hires. It stinks but it works out better for all that were furloughed.

Like i said, the above the above information is WRONG.;)

Everyone needs to STAY INFORMED, ask questions to the MEC before jumping to conclusions.

Per the MEC update TODAY!!

NWA Announces Voluntary Staffing Reductions

Northwest Airlines today announced it will reduce its frontline and management employees by 2,500 as a result of capacity reductions taken to address the unprecedented run-up in oil prices. The reductions will be first achieved through a variety of voluntary programs including early-out programs, voluntary leaves, work rule modifications and attrition. Furloughs will be employed only if voluntary means fail to achieve the targeted reductions. The NWA Negotiating committee previously negotiated Letter of Agreement (LOA) 08-46 Layoff Protection Package which addresses pilot reductions by implementing early retirements, leaves and hourly reductions without the need for furloughs.

Everyone keeps talking about NWA furloughs, why? Did i miss something? Referance the above. ;)

I really don't think today's media is overly concerned with where they get information from. As long as it gets ratings and provokes emotion.
The truth would be nice, but not required by today's journalistic standards.

Agree with above statement and add:

Journalist = euphemism for ambulance chaser

I agree that nothing has been stated, yet. What I am saying is that there is a huge loop hole in that LOA. Kind of like a lot of the loop holes in the JPWA. You just have to live with them, because your and my MEC's truly feel that we cannot push for more.

On a side note our MEC feels that there is no way that we could get Compass on the list, even though it is the right thing to do. Makes you wonder.

What a great deal for the junior DAL guys, NW will not furlough pilots even if they are overmanned but will just carry extra bodies into the merger. I hope I am missing something here I remember a lot of NW guys saying you were short even with the planned DC-9 cuts. How would an arbitrater take the above into account? Maybe the DAL pilots are better off voting down the joint contract? Maybe not? Who knows? Either way once the ink is dry I think we will see managements "real" plans not the BS they are putting out now.
Scoop

We arent overstaffed much if by any. This is an attempt to get rid of the senior guys just like you guys did. The more that leave the better right? Would you prefer they not offer early outs for these guys? If you sit down and look at the numbers, which i have at great length, we arent overstaffed. We have 5100-5200 pilots and end of year projections for staffing ACCOUNTING FOR AIRCRAFT REDUCTIONS, being just under 5000 total positions REQUIRED after the reductions. Now if you count the number of instructor pilots, mgmt pilots, LTD, Military, and people still on voluntary furlough you can quickly see that we arent overstaffed. That also doesnt account for any retirements or early outs which are projected to be in the hundreds.

This is just an opportunity to get rid of the senior guys nothing more.

How about 4800 pilots finally flying around 8-10 hours less per month.

Let's see......

4800 x 8hrs = 38,400

38,400 / 79 hrs = 486 pilots

Who wouldn't mind flying less than 85 hours a month?

my fear would be that mgt would come back to you guys and say ... ITS NOT because of the MERGER we need to furlough... ITS the ECONOMY stupid...

just a thought....

There are new planes coming to both sides that have to be flown by somebody. The new aircraft coming to both sides will require additional pilots even with the cutbacks. Thats why furloughs wont happen imho because any furlough would be very short lived adding unnecessary additional costs and wasted cash by retraining us at compass only to bring us all back within a years time. There are a number of reasons why they dont want to furlough or why furloughs wouldnt make since. However i know its easier for some to shoot off the hip and just assume the worst ;)